Deutsche 'hid $12bn in losses', ex-staff claim

Deutsche Bank hid up to $12bn in paper losses during the financial crisis, helping it avoid a government bailout, former employees have claimed, according to reports.

In three complaints made to US regulators, three former staff claim Deutsche misvalued derivative positions known as 'leveraged super-senior trades', according to the Financial Times. If properly accounted for, those derivative positions would have seen the bank's capital fall to "dangerous levels" that may have led the bank to require a government bailout, the paper reported. Two employees allege Deutsche mismarked the value of insurance provided on some of the positions by Warren Buffett's Berkshire Hathaway, according to the paper. Deutsche Bank said in a statement the allegatio...