Bank mistakenly transfers $34bn to customer
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Germany’s biggest lender Deutsche Bank on Friday
admitted to a massive erroneous transfer of €28bn ($34 billion) in a routine
operation, more than the entire bank is worth.
The unprecedented mistake happened on March 16
when Deutsche Bank carried out a transfer to an account at Deutsche Boerse’s
Eurex clearing house, a spokesman told AFP.
The operation was meant to involve a far smaller
sum, which the bank has not revealed, and highlights IT and control issues at
the banking giant.
Accounting errors happen most days, but the sum
involved in this case is highly unusual and even exceeds Deutsche’s market
capitalisation of 24 billion euros.
The incident, which came shortly before John Cryan
was ousted as chief executive, was quickly fixed and no harm was done, the
institution said.
But it raises questions about the risk management
and control processes within the bank, which Cryan was meant to have greatly
improved since his arrival in 2016.
Punch
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