Skip to main content

Posts

Showing posts from April 22, 2018

Biggest bank in the country mistakenly transfers $34 billion to customer

Biggest bank in the country mistakenly transfers $34 billion to customer

A bank has erroneously transferred $34 billion to a customer in a routine operation, more than the entire bank is worth.

The Deutsche Bank in Germany which is considered to be the biggest bank in Germany on Friday admitted the error.

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 wi…