German Authorities Are Said to Investigate Deutsche Bank
Deutsche Bank, The largest bank in Germany is faced with allegations that the financial institution hid problems during the financial crisis. The German central bank is now investigating the issue that Deutsche Bank avoided a potential bailout by covering their financial problems. The bank hid billions of dollars and claimed that their actions were in good standing. Deutsche Bank had as much as $130 billion in complex derivatives that could not be traded because financial positions were under severe stress. The defending argument by Deutsche Bank was that the accounting was within industry standards and auditors had signed off on it. If the bank had reported the numbers, a bailout by the German government would have been inevitable. This whole situation has become a question of ethics.
Deutsche Bank’s actions have raised a question about ethical standards. I do not believe that the German bank’s actions were right. Using accounting as support for their action, many people will lose trust in the accounting once again like during the Enron Scandal. The declines of public trust in accounting all arise from issues like this and as a prospective accounting major I feel that the accountants should be more ethical in what they do.
Written by: Wilson Tang