Deutsche Bank Said to Review Valuations of Inflation Swaps
- Lender said to share its findings with U.S. authorities
- Inquiry said to begin after books found to differ from models
Deutsche Bank CEO John Cryan's Balancing Act
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Deutsche Bank AG is reviewing whether it misstated the value of derivatives in its interest-rate trading business, and is sharing its findings with U.S. authorities, according to people with knowledge of the situation.
The bank is looking at valuations on a type of derivative known as zero-coupon inflation swaps, said the people, who asked not to be identified because the matter is confidential. After finding valuations that diverged from internal models, it began questioning traders, the people said.