Are you sure?

Investigation expected to find Deutsche Bank at fault for forint speculation

Deutsche Bank is expected to be found at fault in an investigation involving foreign market regulators of speculative trading at the time of the sharp weakening of the forint in October 2008, business weekly Figyelő reported, citing unnamed sources.

István Binder, spokesman for Hungarian financial market regulator PzÁF, would neither confirm nor deny the report. The UK's financial market watchdog said it could not give out information on ongoing cases when asked by MTI.

Figyelő said Deutsche Bank's London office sold special five-year forint swaps to five Hungarian financial institutions. The institutions suffered big losses on the swaps when the forint weakened drastically. The investigation focused on establishing whether these transactions conformed with regulations, the weekly said.

The investigation was the last of several that focused on speculation against the forint in October, Figyelő wrote. (MTI-Econews)