Tavakoli: Deutsche Bank Derivatives Fine Tip Of The Iceberg

As Deutsche Bank agrees to pay a $55 million fine for misstating financial reports regarding their derivatives losses during the 2008 financial crisis, a leading player in the derivatives industry points to the problem being more endemic rather than a one off situation.

SEC fines Deutsche Bank for misstating derivatives losses

The Securities and Exchange Commission today announced the Deutsche Bank monetary fine for misstating billions in hidden derivatives losses, while an outside expert hired by the SEC pegged the misstated losses at $1.5 billion and Deutsche’s internal estimates characterized the actual loss as up to $3.3 billion.

“At the height of the financial crisis, Deutsche Bank’s...