Deutsche Bank will exit global equities business and slash 18,000 jobs in sweeping overhaul
- Thread starter ETJ
- Start date
I got the same impression. I gave basically the same hour long seminar to a group of about 10 people each at DB and GS on the same day a couple years ago at each of their respective offices in NYC (in the energy space). The GS team was super engaged, had clearly done a significant amount of background reading in prep and as a result asked a bunch of very good in-depth questions. Half the DB team literally fell asleep and only two of them appeared to be at all engaged and even they clearly hadn't done much background in the subject. I'd normally attribute the falling asleep and lack of engagement to my failure as a presenter, but it was literally the same deck and material on the same day, so I think it's safe to say it was some combination of people and work environment. I literally went home and went long GS and short DB in equal amounts the next day.
Deutsche Bank suffers one of its largest losses on a single trade ever
FEBRUARY 21, 2019, 11:31AM EDT
Deutsche Bank lost $1.6 billion on a single bond investment in 2016 involving insurance from Warren Buffet's Berkshire Hathaway, according to a recent report by the WSJ.
The loss will go down as one of the worst trades in the banking industry in the past decade. For comparison's sake, the loss is almost four times the amount of profit Deutsche Bank made in all of 2018.
What may be more concerning is that the bank chose not to adjust the diminishing value of these assets on their public records for years, which could have misled potential investors. During this same period, the bank raised billions of dollars in capital markets. Investors were told internal financial controls were sound and were never made aware of the valuation discrepancies. The bank said they were in line with accounting standards and practices; however, this is not the first time Deutsche Bank has been accused of mis-marking illiquid holdings.
This particular transaction, and how mangers debated internally for years on how to handle it, sheds some light on why the bank has had trouble competing in the U.S.
Never shy of controversy, news broke earlier this month that the bank is reneging on $4 billion worth of consumer relief promises — an arranged settlement for selling bad mortgages pre-crisis — and instead re-purposing the funds towards originating new loans.
FEBRUARY 21, 2019, 11:31AM EDT
Deutsche Bank lost $1.6 billion on a single bond investment in 2016 involving insurance from Warren Buffet's Berkshire Hathaway, according to a recent report by the WSJ.
The loss will go down as one of the worst trades in the banking industry in the past decade. For comparison's sake, the loss is almost four times the amount of profit Deutsche Bank made in all of 2018.
What may be more concerning is that the bank chose not to adjust the diminishing value of these assets on their public records for years, which could have misled potential investors. During this same period, the bank raised billions of dollars in capital markets. Investors were told internal financial controls were sound and were never made aware of the valuation discrepancies. The bank said they were in line with accounting standards and practices; however, this is not the first time Deutsche Bank has been accused of mis-marking illiquid holdings.
This particular transaction, and how mangers debated internally for years on how to handle it, sheds some light on why the bank has had trouble competing in the U.S.
Never shy of controversy, news broke earlier this month that the bank is reneging on $4 billion worth of consumer relief promises — an arranged settlement for selling bad mortgages pre-crisis — and instead re-purposing the funds towards originating new loans.
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Maybe right; except they need 5,000 +/ more branches, a dividend again, a PE of 4X less[WFC has a PE of10, DB PE=50 LOL]+ 50% less debt.In the DB bulls favor, DB is not headquartered in a major E quake region; but DB seems to get in fights with regulators like TSLA. But DB has had much bigger fines than $40,000,000 SEC fine against TSLA
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Remembering Deutsche Bank: A Market Macro-Structure Canary?
http://alphacution.com/remembering-...il&utm_term=0_98541b806d-65b4d91240-204597581
http://alphacution.com/remembering-...il&utm_term=0_98541b806d-65b4d91240-204597581
I'm curious:
With the exit from equity markets, will Deutsche bank have to sell their holdings?
In the event, they start selling, stock prices will go down due to excessive supply of shares in the market.
Is the intuition correct here?
With the exit from equity markets, will Deutsche bank have to sell their holdings?
In the event, they start selling, stock prices will go down due to excessive supply of shares in the market.
Is the intuition correct here?