LONDON Three former Deutsche Bank employees have filed complaints with the U.S. securities regulators claiming the bank failed to recognize up to $12 billion (7 billion pounds) of unrealized losses during the financial crisis, the Financial Times reported on Wednesday.
Complaints to regulators including the U.S. Securities and Exchange Commission (SEC) said that Deutsche misvalued a large position in derivatives structures known as leveraged super senior trades, the newspaper reported, citing people familiar with the submissions.
The report said this improper accounting allowed the bank to misrepresent its capital position and avoid a government bailout.
"The allegations of financial misstatements, which are more than two and one-half years old and were publicly reported in June 2011, have been the subject of a careful and thorough investigation, and they are wholly unfounded," Renee Calabro, a spokeswoman at Deutsche Bank, told Reuters in an email.
She dismissed the report on Wednesday evening, saying that all "valuations and financial reporting were proper".
(This story was fixed to correct day of week in first and final paragraphs)
(Reporting By Dasha Afanasieva; Editing by Stacey Joyce)
Our top photos from the past week.