FT.com / Companies / Banks – Deutsche Bank losses predicted to reach €800m
Deutsche and Goldman Sachs had been the two financial institutions that had most successfully navigated the credit meltdown.
The credit trading group, headed by Boaz Weinstein in New York, made billions for Deutsche Bank, especially last year, when the group took large negative bets on subprime mortgages. But its positions went wrong after Lehman Brothers filed for bankruptcy protection in mid-September.
During the third quarter Deutsche lost €386m in equity proprietary trading and €873m on the credit side. But the bank recorded a net profit for the quarter of €414m after reclassifying some of the assets on its balance sheet.
The credit trading group under Mr Weinstein traded corporate and convertible bonds and credit default swaps. Compared with hedge funds which dabbled in the same areas, such as Citadel, which was down 47 per cent year to the end of November, the losses at Deutsche Bank have been fairly small.
via FT.com / Companies / Banks – Deutsche Bank losses predicted to reach €800m.
loading...
loading...
Related Posts frm Wordpress
Related Posts - FT.com / Deutsche Bank borrowing Heatons from Merrill / BofA
- FT.com / Companies / Banks - D Bank job cuts focus on New York and London
- Goldman Sachs and Deutsche Bank - the last of the everglades
- UBS Posts $1.3 Billion Quarterly Loss - NYTimes.com
- Deal with Wachovia good for Wells Fargo | Amit 'zyaada' Mittal
Related Websites 
Leave a Reply