A report came out this afternoon that a few hedge funds were withdrawing their funds from Deutsche Bank — a small little provincial bank with over $1.8t in assets and $50-75t in derivatives. Aside from being Europe’s largest bank, the IMF said it poses the greatest risk to the financial system.
There are many who believe DB is more dangerous that LEH ever was, specifically because Germany, and all of Europe, have been using it as a cesspool, dumping all of the refuse from the edges of Europe onto its balance sheets.
Bloomberg reports:
While the vast majority of Deutsche Bank’s more than 200 derivatives-clearing clients have made no changes, some funds that use the bank’s prime brokerage service have moved part of their listed derivatives holdings to other firms this week, according to an internal bank document seen by Bloomberg News. Millennium Partners, Capula Investment Management and Rokos Capital Management are among about 10 hedge funds that have cut their exposure, said a person familiar with the situation who declined to be identified talking about confidential client matters.
The hedge funds use Deutsche Bank to clear their listed derivatives transactions because they are not members of clearinghouses. Millennium, Capula and Rokos declined to comment when contacted by phone or e-mail.“Our trading clients are amongst the world’s most sophisticated investors,” Michael Golden, a spokesman for Deutsche Bank, said in an e-mailed statement. “We are confident that the vast majority of them have a full understanding of our stable financial position, the current macroeconomic environment, the litigation process in the U.S. and the progress we are making with our strategy.”
As a result of this report and everything else going on, investors dropped DB like a hot volcanic stone. Shares slid and the market followed suit.
So how did CNBC report on it? Like clowns. Take a shot for every time ‘small’ was said in this clip. I especially like the conspiracy theory conjured up by the leprechaun, regarding hedge funds short DB and then removing funds to make their trades profitable. Hey bozo, the stock is down over 60% for 2016. It doesn’t need any help from nefarious hedge funds to eat dirt.
Shameful journalism here.
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Racist is systemic and we’re all implicitly racist says Hilary but banks.. ah.. nothing to see here folks. It’s just this one bank. Not systemic. All good. Go back to whatever you were doing.
Ok good. I’m on the golf course
CNBC? Shameful journalism and/or bias? Surely you jest?
Arrrr.
TWTR now has a larger market cap than DB.
tax loss on the event horizon – nov/dec
class action law suits to be announced,
can you say 14 billion,
die market die,
today was mildly amusing
What? Me worry? – Alfred E. Neuman
Bank will be rescued tomorrow. Das Kollapse ist verboten!! Ja!
No it will be a weekend stick save. Not during market hours.
Of course it all depends on who’s going t profit the most. I remember YUUUGE Lehman put volume like 20 buck out of the money just prior to the collapse. Of course no questions were ever asked.