Deutsche Bank faces probe over possible trading irregularities

15 November 2010

Deutsche Bank is being investigated by South Korea's Financial Supervisory Service over possible trading irregularities.

The Kospi index in Korea fell by 2.7 per cent - the equivalent of 53.12 points - due to a foreign net sale of 1.31 trillion won ($1.2 billion), the regulatory body explained.

In a statement the Financial Supervisory Service said: “Foreign investors sold a net KRW1.34 trillion of shares yesterday. Most of the selloff was confirmed to have been made through Deutsche Bank AG’s South Korean securities unit, which sold about KRW1.6 trillion worth of shares.

“In relation to the selloff, the Financial Supervisory Service launched an investigation jointly with Korea Exchange on November 12, 2010 to determine if it is an act of unfair trading. “

The financial services provider has yet to comment on the probe into its trading activity.

Meanwhile, Deutsche Postbank, the retail firm which Deutsche Bank is currently in the process of acquiring, posted a profit during the third quarter of the year.

The firm recorded a pre-tax profit of €71 million during the period, a figure which was up on the €29 million loss made in the same three months in 2009.

By Jim Ottewill

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