Lunchtime Links: Deutsche's dastardly trading disaster

15 December 2008

2 minute read

Lunchtime Links: Deutsche's dastardly trading disaster

The good news is that Deutsche Bank doesn't, so far, rank among the many institutions that may yet be forced to admit that they thought Bernie Madoff was just a regular guy who produced nice solid returns through a strategy they didn't quite understand. The bad news is that Deutsche appears to have lost lots of money anyway. According to a story which first surfaced on Bloomberg back on Friday afternoon, the German bank lost $1bn on credit trades following the collapse of Lehman. It doesn't bode well for compensation expenditure (AKA bonuses) at Deutsche's investment bank, already down 38% yoy at $4.4bn in the first three quarters.

Bernie Madoff's giant Ponzi scheme was superbly designed and executed (Clusterstock).

Mild-mannered Madoff wanted to pay bonuses (Guardian).

So what will this do to the hedge fund industry? Well it could completely kill it off. (Fintag).

Citadel halts withdrawals from two hedge funds after 50% drop (Bloomberg).

Goldman and Morgan Stanley will bleed red ink (CNN).

"You're not going to see revenue growth for three years" (Bloomberg).

Jim Rogers: Most big US banks are bankrupt (DealBook).

Deloitte hiring for restructuring boom (Financial News).

Wealth management recruitment is rising (Wall Street Journal).

Fund managers need to halve pay to avoid job cuts (Financial News).

Northern Trusts to cut 450 jobs in 2009 (DealBook).

Dick Fuld: the man who brought the world to its knees (The Times).

AUTHOReFinancialCareers UK

Insider Comment

dd
dd
17 December 2008
blob: you need to carefully read this article in order to understand teehee's posts:
http://www.answers.com/satire
Once you've read and carefully considered the article, come back and re-read teehee's posts and see if your understanding of them changes.
Reply
bl
blob
16 December 2008
teehee - why? I am stating well reporter FACTS that are in the public domain and all over the news. No speculation here. I think DB is solid and has a good model but stop pulling wool over our eyes with your non-sense.
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te
teehee
16 December 2008
blop...the FSA should investigate you for your blatant attempts to put the skids under Deutsche Banks share ..shame on you...we are robust and the fact that a few hundred or possibly just into the low thousands of staff are being let go ( more as a sop to public sentiment) rather than any losses of note should not be seen as any sign of weakness,,,in fact when i get my bonus i will immediately beinvesting it all into bank shares to show my commitment to an employer who generally has their employees interests to the forefront
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bl
blop
16 December 2008
Yeah and you didn't lose tons on EQD (exotics and FLOW!!!!) and you did not sack the head of EQD trading and a skew of traders in his team ... and oh the head of Equities himself was not recently subtly replaced internally. All is rosy. And I also hear you will pay record bonuses this year.
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lo
lol
15 December 2008
erm,
"Our risk people will be back from their statutory xmas shopping days tomorrow and will no doubt be able to tell the world that having checked the traders blotters and looking at their suggested mark to market pricing that in fact it looks like we may even have made a profit.."
Don't you get it?!?!?!?!?!?
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