A huge payment mistake happened accidentally at Deutsche Bank last month. The biggest bank in Germany has failed in safety department and inadvertently sent 28 billion Euros (35 billion USD) to an exchange as of its daily dealing in derivatives.

The error, which took place in the final weeks of former Chief Executive Officer John Cryan’s tenure, was quickly spotted and no financial harm suffered. But the episode raises fresh questions about the bank’s risk and control processes, which Cryan had boasted of improving before his ouster, according to Bloomberg.com

“This was an operational error in the movement of collateral between Deutsche Bank’s principal accounts and Deutsche Bank’s Eurex account,” Charlie Olivier, a spokesman for Deutsche Bank, wrote in an emailed statement. “The error was identified within a matter of minutes, and then rectified. We have rigorously reviewed the reasons why this error occurred and taken steps to prevent its recurrence.”

In matter of fact, that most of money quickly returned and Deutsche Bank has suffered no financial harm, this is very negative action for investors, as we can see, the payment bigger than it’s own capitalization, hasn’t been enough controlled.

“A bank mistakenly making such a large transfer shows its controls aren’t working adequately, and it’s embarrassing,” said Dieter Hein, an analyst, who has the equivalent of a sell recommendation on the bank’s stock. “This kind of incident shows that the bank’s problems are so big that you can’t fix them immediately. Cryan failed.”

The error should have been caught by an internal fail-safe system known as a “bear-trap,” the person said. The mechanism was set up after an internal audit at the bank triggered by an earlier collateral payments error, in March 2014, the person said. While such errors do occur, the amount involved — more than the bank’s market capitalization of around 24 billion euros — is highly unusual, according to the person. Deutsche Bank’s new CEO, Christian Sewing, is seeking to turn around the worst-performing member of the Stoxx 600 banks index this year, with the company’s shares having fallen 26 percent to date. Analysts have said Sewing’s appointment raises questions about the lender’s future direction, especially the under-performing investment bank business, according to Bloomberg.com

A huge payment mistake happened accidentally at Deutsche Bank last month. The biggest bank in Germany has failed in safety department and inadvertently sent 28 billion Euros (35 billion USD) to an exchange as of its daily dealing in derivatives.

The error, which took place in the final weeks of former Chief Executive Officer John Cryan’s tenure, was quickly spotted and no financial harm suffered. But the episode raises fresh questions about the bank’s risk and control processes, which Cryan had boasted of improving before his ouster, according to Bloomberg.com

“This was an operational error in the movement of collateral between Deutsche Bank’s principal accounts and Deutsche Bank’s Eurex account,” Charlie Olivier, a spokesman for Deutsche Bank, wrote in an emailed statement. “The error was identified within a matter of minutes, and then rectified. We have rigorously reviewed the reasons why this error occurred and taken steps to prevent its recurrence.”

In matter of fact, that most of money quickly returned and Deutsche Bank has suffered no financial harm, this is very negative action for investors, as we can see, the payment bigger than it’s own capitalization, hasn’t been enough controlled.

“A bank mistakenly making such a large transfer shows its controls aren’t working adequately, and it’s embarrassing,” said Dieter Hein, an analyst, who has the equivalent of a sell recommendation on the bank’s stock. “This kind of incident shows that the bank’s problems are so big that you can’t fix them immediately. Cryan failed.”

The error should have been caught by an internal fail-safe system known as a “bear-trap,” the person said. The mechanism was set up after an internal audit at the bank triggered by an earlier collateral payments error, in March 2014, the person said. While such errors do occur, the amount involved — more than the bank’s market capitalization of around 24 billion euros — is highly unusual, according to the person. Deutsche Bank’s new CEO, Christian Sewing, is seeking to turn around the worst-performing member of the Stoxx 600 banks index this year, with the company’s shares having fallen 26 percent to date. Analysts have said Sewing’s appointment raises questions about the lender’s future direction, especially the under-performing investment bank business, according to Bloomberg.com

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