Deutsche Bank Does Not Tolerate Tax Dodgers! I Wouldn’t Either If I Had The Biggest Exposure To The Derivatives Scam

At $72.8 Trillion US Deutsche Bank is the bank with the biggest exposure to the pending Derivatives collapse. That is more than 3.5 times more than the entire global GDP. That is also more than $ 2 trillion more than JP Morgan. So it should come as no surprise they want to loot as much as they can before the whole house of cards comes down around them.

Moments ago the market jeered the announcement of DB’s 10% equity dilution, promptly followed by cheering its early earnings announcement which was a “beat” on the topline, despite some weakness in sales and trading and an increase in bad debt provisions (which at €354MM on total loans of €399.9 BN net of a tiny €4.863 BN in loan loss allowance will have to go higher. Much higher). Ironically both events are complete noise in the grand scheme of things. Because something far more interesting can be found on page 87 of the company’s 2012 financial report.

The thing in question is the company’s self-reported total gross notional derivative exposure.

And while the vast majority of readers may be left with the impression that JPMorgan’s mindboggling $69.5 trillion in gross notional derivative exposure as of Q4 2012 may be the largest in the world, they would be surprised to learn that that is not the case. In fact, the bank with the single largest derivative exposure is not located in the US at all, but in the heart of Europe, and its name, as some may have guessed by now, is Deutsche Bank.

The amount in question? €55,605,039,000,000….

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3 thoughts on “Deutsche Bank Does Not Tolerate Tax Dodgers! I Wouldn’t Either If I Had The Biggest Exposure To The Derivatives Scam

  1. Somewhere…..and I thought it was on Travellerev blog, I read Key and English had deposited $114b on the derivatives market in NY ? If so then under what name ? The Commonwealth Of New Zealand – a Corporation ? Tied to The Crown – The City of London ? Key has the contacts to do this gamble using the brokers – former colleagues in BoA or Merrill Lynch. Gambling NZ way out of debt and into surplus ? Know anything about the $114b Travellerev?

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