FRANKFURT Dec 7 Deutsche Bank's
supervisory board is seeking answers from management about
claims alleging the lender failed to recognise billions of euros
in unrealised losses, two people familiar with the matter said
The general nature of the allegations about disagreements
over valuation of credit derivatives were known, a source
familiar with the supervisory board's thinking said.
However, news reports alleging the bank failed to recognise
up to $12 billion of unrealized losses during the financial
crisis raised "some new questions about the magnitude," he
The topic of valuations will be discussed at the next
supervisory board meeting, another person familiar with the
supervisory board's thinking said.
Deutsche Bank declined to comment.
On Thursday Law firm Labaton Sucharow LLP said Eric
Ben-Artzi, a former quantitative risk analyst at Deutsche, used
a whistleblower programme to tell the U.S. Securities and
Exchange Commission (SEC) the bank failed to report the value of
its credit derivatives portfolio correctly from 2007 through
The Financial Times reported on Thursday that three former
Deutsche Bank employees had filed complaints with the U.S.
securities regulators claiming the bank failed to recognise up
to $12 billion of unrealized losses during the financial crisis.
Deutsche Bank said it was cooperating with the SEC and
dismissed the allegations.
(Reporting by Edward Taylor and Arno Schuetze)