The U.S. Securities and Exchange Commission has launched an investigation into Deutsche Bank’s mortgage-backed securities positions around 2013 to determine whether the company delayed recording losses on the assets, news agency Bloomberg reported Monday, citing people familiar with the matter.
A Deutsche Bank spokeswoman said the bank was “cooperating with this investigation, which is looking into previously recognized losses on certain positions.” She declined further comment.
The revelation of another investigation, adding to nearly 8,000 legal cases that Germany’s largest bank is dealing with, came as credit rating agency Moody’s lowered the creditworthiness of Germany’s largest bank on Monday, citing risks to Deutsche Bank’s reorganization plan to structurally improve its profitability.
Deutsche Bank’s shares opened down 1.5 percent on Tuesday in Frankfurt, but quickly recovered in line with the German blue-chip DAX Index. The stock was up 0.9 percent by 10:47 a.m. at €15.30, compared with a 0.8-percent rise of the DAX Index.