Hedge funds escape from Deutsche Bank, but the market bet on the plea bargain in the Usa – The Republic

MILAN – about A dozen hedge fund that is working with Deutsche Bank has moved its assets with other banks to reduce exposure to the German institute, whose financial conditions are judged poor by the market. That is worrying investors is the risk the estate of the bancha in the front of the maxi-fine of from $ 14 billion came from the United States for the scandal of subprime mortgages. The German group hopes to reach an agreement to close a transaction at values much lower, in the wake of what happened to other investment banks, but the markets remain doubtful because on the head of the giant teutonic weighs the burden of 55thousand billion in derivatives, an amount equal to 15 times the Gdp of the German. At the start of the day, the title collapses sinks the markets, but then suddenly the route on the votes of plea bargaining in the United States for $ 5.4 billion. in Spite of everything, the funds, a small portion of the more than 800 customers in the industry hedge fund of Deutsche Bank, have moved part of their investments in derivatives to other companies: the news is confirmed by an internal document of the bank and reviewed by Bloomberg. “Every week we have outflows, and inputs and this week is no different,” said Barry Bausano, president of Deutsche Bank Securities and of the activities of hedge funds, without giving indications on the net flows recorded in the week. However, outflows appear to highlight the perception of increased counterparty risk on the part of those who use Deutsche Bank for operations of clearing (clearing).

Between the funds that have moved part of their derivative exposures include the Millennium Partners, which manages $ 34 billion, Rokos capital Management (4 billion) and Capula Investment Management ($ 14 billion). “Our trading clients are among the most sophisticated in the world. We are confident that the great majority of them have a full understanding of our stable financial position, the current macroeconomic context, the litigation in the United States and of the progress we are making with our strategy,” said Michael Golden, spokesman for Deutsche Bank.

The fine more salt for a similar case has been paid by Bank of America, which in 2014 has paid 16,65 billion dollars, while last April, Goldman Sachs was fined 5 billion. Deutsche Bank will try, then, to deal with the american authorities to cut the sanction also because for the moment it is not clear how much of the total would be paid in cash, and as it would reimburse customers who were misled going to feed the real estate bubble which then exploded. For the same products, Citigroup, Jp Morgan and Morgan Stanley have paid a total of $ 23 billion.

for this, the american authorities do not exclude, sanction, with a single fine of Barclays, Credit Suisse and Deutsche Bank. The Ceo of Deutsche Bank John Cryan has written to employees urging them to keep calm despite the turmoil: “there is No basis to this speculation, the uncertainty of the outcome of the legal actions in the Usa is not a reason for this pressure on our shares, if we take a comparison of our direct competitors. Never in the last twenty years, Deutsche Bank has been as safe as today with regard to the budget. With reserves in excess of 215 billion euros the bank has a bearing capital very comfortable”.

Topics:

Deutsche Bank

subprime mortgages

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