Deutsche Bank toxic derivative losses

MobileSaver

AG47 wrote: »

1.1 billion is a drop in the bucket of fifty trillion derivatives problem.

Exactly! This is what everyone has been trying to explain to you for years... the net exposure is a drop in the bucket of the notional value of the derivatives!

AG47 wrote: »

Question, once they go into the bad bank who takes on the losses?

DB are taking on the losses, that is what the 1.1 billion is. As per the article you linked to, there has been "significant expressions of interest from U.S. and European banks"; those banks are only interested because they believe what they're buying will be profitable over the long term.

Arklight

Is there really any reason for the OP to have spammed so many other threads with this?

Crashy_Time

MobileSaver wrote: »

Exactly! This is what everyone has been trying to explain to you for years... the net exposure is a drop in the bucket of the notional value of the derivatives!



DB are taking on the losses, that is what the 1.1 billion is. As per the article you linked to, there has been "significant expressions of interest from U.S. and European banks"; those banks are only interested because they believe what they're buying will be profitable over the long term.

Or are they "interested" because DB is the 15th biggest bank in the world?

RealElement47

Crashy_Time wrote: »

Or are they "interested" because DB is the 15th biggest bank in the world?

They ate the number 1 derivative holder

Fifty trillion derivative book

Thrugelmir

Crashy_Time wrote: »

Or are they "interested" because DB is the 15th biggest bank in the world?

Balance sheet size means little at the current time. RBS used to be no 1. Says it all.

michaels

AFF8879 wrote: »

Who cares? If the transaction would not generate profit, why would any other private enterprise be interested in buying them out?

Obviously it is part of the conspiracy, the other banks can not afford for the counter party (db) to fold so they have to buy the 'assets' to keep the pretence going.

Kentish_Dave

For anyone reading this who’s wondering what the facts are, the notional amount on a derivative tells you nothing about the risk.

If DB pays fixed in ten billion one year GBP swap to JPM, who pay fixed to Goldman, who pay fixed to DB, then the risk that each of them faces is very small, but the OP would be banging on about a sixty billion GBP exposure.

Even worse, if JPM and DB trader one way one day, and the other way later in the day then the total exposure would literally be zero.

The reason that these deals are a problem is that nowadays banks have to hold capital against the gross exposure, not only the nett, which makes them very expensive to have on the books.

There’s good money to be made if you are one of the firms that can centralise everything and unwind the offsetting positions, which is what JPM are doing.

DannyGold

There are around fifty trillion cells in the average human body

DB have a fifty trillion derivatives book

JPMorgan have now gone full retard, JPM derivatives book is now over 59 trillion

JPM have overtaken DB as the largest bag holder of weapons of mass financial destruction

westernpromise

DannyGold wrote: »

There are around fifty trillion cells in the average human body

DB have a fifty trillion derivatives book

JPMorgan have now gone full retard, JPM derivatives book is now over 59 trillion

JPM have overtaken DB as the largest bag holder of weapons of mass financial destruction

Three logins, one psychotic episode. That's not abuse by the way. I've lived with a psychotic depressive, and much of what you write here is eerily familiar, most notably the repetitious insistence on nonsense and the denial of reality. Please seek help - you're not a contributor, you're a mental health concern.

Please read this page, it describes you
https://www.nhs.uk/conditions/psychosis/

Takedap

westernpromise wrote: »

Three logins, one psychotic episode. That's not abuse by the way. I've lived with a psychotic depressive, and much of what you write here is eerily familiar, most notably the repetitious insistence on nonsense and the denial of reality. Please seek help - you're not a contributor, you're a mental health concern.

Please read this page, it describes you
https://www.nhs.uk/conditions/psychosis/

AG47, RealElement47 and now Danny Gold.

He's not even trying is he???
What next? Gary AllThatGlitters??