Deutsche Bank Error Said to Briefly Send Client $6 Billion
- Bank said to recover money one day later from hedge fund
- Junior employee in foreign-exchange trading processed trade
Deutsche Bank's $6 Billion Net vs. Gross Mistake
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Deutsche Bank AG’s foreign-exchange unit mistakenly sent about $6 billion to a U.S. hedge fund client in June and recovered the money a day later, a person briefed on the situation said.
A junior member of the Frankfurt-based company’s foreign-exchange sales team processed a trade using a gross figure, rather than a net figure, prompting a payment that was orders of magnitude higher, according to the person, who asked not to be identified because the matter hasn’t been made public. The person wouldn’t identify the client.