Deutsche Bank Lost $1.6 Billion on a Bond Bet

[ETJ]

One of the banking industry’s biggest soured bets since the financial crisis involved a complex municipal-bond investment. Warren Buffett was enmeshed in the deal.

https://www.wsj.com/articles/deutsc...on-on-a-bond-bet-11550691086?mod=hp_lead_pos1

 

[Tedroes]

They Should Have Listend back then. They Probably Had Hedge Funds paying them millions if not billions in Premiums. If they went Long in the Housing Market, Why Did they not Short Housing Bonds (Triple AAA and BBB's) as Soon as they knew that the Real Estate Market was a bubble.

 

[JSOP]

Ok am I reading this correctly? They paid $140 million for default insurance (essentially a put) on their $7.8 billion bond portfolio but decided not to put a claim to the insurance when the bonds did start to default??!! What's the point of buying insurance when you are not going to use it? What were the terms on that insurance? And then they decided to do an Enron thing by hiding the losses when reporting earnings after all their lawyers and auditors Ok'ed it? Seriously?

And nobody is investigating Deutsche for securities fraud, improper disclosure, accounting fraud for hiding the losses and not restating the previous earnings of course because it's Deutsche.

 

[Visaria]

Another reason to leave the EU asap...they cn bail their own banks out.

 

[zdreg]

Ok am I reading this correctly? They paid $140 million for default insurance (essentially a put) on their $7.8 billion bond portfolio but decided not to put a claim to the insurance when the bonds did start to default??!! What's the point of buying insurance when you are not going to use it? What were the terms on that insurance? And then they decided to do an Enron thing by hiding the losses when reporting earnings after all their lawyers and auditors Ok'ed it? Seriously?

And nobody is investigating Deutsche for securities fraud, improper disclosure, accounting fraud for hiding the losses and not restating the previous earnings of course because it's Deutsche.

"socialism for the rich. capitalism for the poor."
What else is new?

 

[schweiz]

And nobody is investigating Deutsche for securities fraud, improper disclosure, accounting fraud for hiding the losses and not restating the previous earnings of course because it's Deutsche.

Maybe because: https://www.businessinsider.com/trump-deutsche-bank-mueller-2017-12

 

[JSOP]

"socialism for the rich. capitalism for the poor."
What else is new?

Yeah but this is the rich getting capitalism too from Warren Buffett. LOL WHY didn't Deutsche exercise the put that it bought from Berkshire aka the default insurance when the bonds were defaulting? That's what I cannot understand.

 

[zdreg]

And nobody is investigating Deutsche for securities fraud, improper disclosure, accounting fraud for hiding the losses and not restating the previous earnings of course because it's Deutsche

"socialism for the rich. capitalism for the poor."
What else is new?