Hedge Funds

Deutsche Bank mistakenly transfers $6 billion to client’s account

Communication mix-up results in overpayment, with transaction quickly reversed

Deutsche Bank mistakenly transfers $6 billion to client’s account
Photo: iStock

Deutsche Bank erroneously transferred $6 billion to a hedge fund client’s custody account in June after a junior foreign exchange trader misunderstood instructions calling for a much smaller payment, according to a person familiar with the matter.

The error was reversed in 24 hours and the German lender recovered the money, the person said. The erroneous transaction was first reported by the Financial Times.

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