FRANKFURT, June 27 Bundesbank officials met with
former Deutsche Bank employees in the United States
earlier this month as they investigated allegations the lender
failed to correctly value a derivatives portfolio, sources
familiar with the probe said on Thursday.
The Bundesbank was reacting to accusations made by a
Deutsche Bank former employee alleging that the lender had
incorrectly valued credit derivatives from 2007 through 2010,
allowing it to hide billions of euros in losses.
Deutsche Bank said the allegations are unfounded and
declined to comment on the investigation.
Bundesbank officials have also met with officials from the
Securities and Exchange Commission (SEC), one of the sources
familiar with the matter said.
German banks are supervised by the Bundesbank, together with
German markets regulator Bafin. Both declined comment, as did
In April, Reuters reported that Bundesbank officials would
make trips to New York to meet the people who had made the
allegations against Deutsche.
A Sarbanes-Oxley whistleblower has alleged that some assets
held in a derivatives portfolio during the financial crisis may
have been improperly valued in order to help Deutsche Bank hide
In an internal presentation given by Bill Broeksmit, head of
risk and capital optimisation at Deutsche Bank in June 2011,
Deutsche Bank said it had been able to unwind a large portion of
its credit derivative portfolio without taking heavy losses.