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.


About zyakaira

Investment Banker, 40s, Bangalore This Biopic and this web recreates how one point of view, one person can impact a tremendous economic engine that the world thrives and mis-thrives on. This one has the knowledge and the civil sense , the art of conversation and some good writing to mentor others as powerful and help global managers develop and fine tune their approach on US markets, China, India and the world. Read on here, and let me know what you need. It can be a race for TRPs, a race for new markets and a race to do what is right. I have the pulse of the crisis, the recovery and the market direction and can help you build and refine your strategy as i have helped thousands of managers and multiple global corporations. Of course, it’s more fun if you talk to me. I am in favor of leading this moving of the economic crisis and will partner with you in a soft and subtle way, just the way we both ride to the top. But you can write with us, opine and just reply with aplomb and shine on Twitter , 4 square , Facebook and any other social “choupal” of choice via zyaadakairaada Profile & Portfolio - SocialPicks Different flavours at: http://benchilibowl.wordpress.com http://zyaada.mp

Posted on December 13, 2008, in Bank Stocks, Financial Markets, Meltdown and tagged . Bookmark the permalink. Leave a comment.

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