Deutsche Bank settles derivatives case in US

New York

DEUTSCHE Bank "overstated" the value of a multibillion-dollar portfolio of sophisticated derivatives during the height of the financial crisis, leading it to file inaccurate financial statements for at least a six-month stretch, securities regulators in the United States said Tuesday.

The bank, without admitting or denying wrongdoing, agreed to pay a US$55 million penalty to the Securities and Exchange Commission to settle claims that its "inadequate internal accounting controls" violated federal securities law.

The settlement closes the door on a five-year investigation into claims raised in part by former Deutsche Bank employees that the bank mispriced assets held in a large portfolio of derivatives…