Deutsche Bank is reportedly staring down a $60 million trading loss
Deutsche Bank could be staring down a $60 million loss after a bad bet on inflation, Bloomberg reported Tuesday.
The German lender's supervisory board is reportedly investigating whether traders flouted risk limits on derivatives trades tied to US inflation, generating concerns over the strength of the company's risk controls.
Bloomberg reported that the bank does not expect the bad bet to turn around.
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This is the latest in a spate of bad news that has called into question oversight procedures at Deutsche Bank, which was fined nearly $160 million by the Federal Reserve in April after traders violated foreign exchange rules.
Regulators also hit the company with more than $650 million in fines earlier this year for anti-money laundering failures connected to wealthy Russian clients.
It's also another blow to Deutsche Bank's fixed-income trading operation. Business Insider reported last week that the bank had unexpectedly pulled an offer to hire a top executive at the last minute. Meanwhile, a number of senior executives have left the business in recent months.
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