Deutsche Hid Up to $12bn Losses, Say Staff
December 5, 2012
Jordan A. Thomas comments on alleged multi-billion dollar securities violations at Deutsche Bank
The complainants allege that the bank misvalued the positions by failing to account for losses it faced when the market worsened. Had the proper valuations been made on the positions during the tumultuous period, they allege, the losses for the whole portfolio would have exceeded $4bn and could have risen to as much as $12bn.
"Self preservation can be a powerful motivator," said Jordan Thomas, head of the whistleblower practice at the law firm Labaton Sucharow, who is representing Mr Ben-Artzi.
"During the financial crisis, many financial institutions faced an existential threat and the evidence suggests that Deutsche Bank crossed the line by substantially inflating the value of its credit derivatives portfolio – the largest risk area in its trading book."
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