Off message

17 January 2006 By Chris Hughes

Its executives reportedly told the FT that occasional losses were the price for excelling in fastgrowing areas like CDOs. After a trader s alleged £30m overstatement of his position, to let that stand would have done little to discourage dishonest conduct.

This content is for Subscribers only

Context News

Deutsche Bank has dismissed a derivatives trader for gross misconduct after he allegedly overstated his trading position by almost £30m, according to the Financial Times.

The trader, said to be Anshul Rustagi, was involved mainly in synthetic collateralised debt obligations, which are structured portfolios of credit default swaps.

Some of the bank's executives were reported to have said that an occasional loss such as this was the price for excelling in fastmoving areas.

In complex derivatives trading, the bank had to place more reliance on individual bankers than on the risk managers who control them, and there was no need to change the way practices were managed, the newspaper reported unnamed Deutsche executives to have said.

Deutsche Bank plans to disown the comments, according to a person familiar with its thinking.

Context News

Email a friend

Please complete the form below.

Required fields *