Deutsche Bank Faces Possible $60 Million Derivative Loss
- Firm made bet on U.S. inflation that has gone awry: sources
- Deutsche Bank said to review trade after losses swelled
Deutsche Bank May Face $60 Million Trade Loss
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Deutsche Bank AG, the German lender seeking to overhaul how it manages risks, made a bet on U.S. inflation that puts the firm on course to lose as much as $60 million, people familiar with the matter said.
The trade used derivative products tied to U.S. inflation, said the people, who requested anonymity because the details aren’t public. The Frankfurt-based lender has been examining whether Deutsche Bank traders breached risk limits on the deal, some of the people said. The case has been escalated to the bank’s supervisory board, one person said.