Germany’s largest bank, Deutsche Bank, admitted on Friday that, in a routine operation, they have accidentally transferred €28 billion to a company they do business with. The amount surpasses the bank’s entire market value by €4 billion.
The mistake was made in March, when the Deutsche Bank transferred the money to the account of Eurex, an international company trading in European based derivatives.
The real amount, which the bank did not disclose, was supposed to be significantly lower. The incident was resolved within minutes, and no damage was done, the bank said.
This does open up questions about the risk-management system and control processes within the bank, something the former CEO, John Cryan, should have improved significantly.
Cryan was tasked with the restructuring of the bank, and dealing with the consequences of the decision to keep up with the investment banking giants on Wall Street, in the years before the financial crisis in 2008.
He was removed from his position in April, after less than three years on the job.
Further proof of the problems the bank is dealing with is this week’s announcement of departure by the IT and infrastructure department head, Kim Hammonds, who said on multiple occasions that the Deutsche Bank was “the most dysfunctional company” of her entire career.
The Deutsche Bank hasn’t posted profit in years, and its shares have lost more than 50 percent their value in the last two years, some 30 percent this year alone.
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