Alarm! Deutsche Bank Said to Face Possible $60 Million Derivative Loss (As Hindenburg Omen Flashes Red)

Jon Economy

Deutsche Bank is struggling with stock prices that a pale shade of levels from 2007.
Now that DB has a derivatives fiasco on their hands as well.
(Bloomberg) – Deutsche Bank AG, the German lender seeking to overhaul how it manages risks, made a bet on U. S. inflation that puts the firm on course to lose as much as $60 million, people familiar with the matter said.
The trade used derivative products tied to U. S. inflation, said the people, who requested anonymity because the details aren’t public. The Frankfurt-based lender has been examining whether Deutsche Bank traders breached risk limits on the deal, some of the people said. The case has been escalated to the bank’s supervisory board, one person said.
Such a loss would be a setback for Chief Executive Officer John Cryan, who has been trying to improve the lender’s risk and operational controls that have drawn scorn from regulators around the world.

This post was published at Wall Street Examiner on June 27, 2017.