Deutsche Bank - They think its all over.....
Discussion
sidicks said:
Four Litre said:
So you now want me to post where I work!!!!??
We just wanted to understand what area of financial services you work in (or used to). No-one would expect you to state your employer's name or any private / significant details.
Zod said:
Four Litre said:
Zod said:
Four Litre said:
Zod said:
Four Litre said:
AyBee said:
Four Litre said:
Pleased to meet to too Zod. You appear to either got out of bed the wrong side today or are a complete and utter cock. Judging by your posting, I can only assume the latter.
Unless your the chairman of DB, why the need to behave like an utter bell-end? Im guessing small guy with a keyboard syndrome?
Zod asked a pretty reasonable question IMO, I'm not sure why you've taken such a hostile approach to responding. It's perfectly reasonable to ask whether the OP actually understands the implications of what they're posting, or whether they're just forwarding on some sentences which sound scary...Unless your the chairman of DB, why the need to behave like an utter bell-end? Im guessing small guy with a keyboard syndrome?
Do I know what Im talking about? I like to think so as I have worked in finance for all my career, which is 25+ years and as a direct result of the 2008 crash am working on the separation of UK Retail and Investment banks. So as I say, I like to think I have a bit of background, not that it needs to be called into question when discussing a news article.
Shame PH has ended up this way...
Four Litre said:
Zod said:
Four Litre said:
Zod said:
Four Litre said:
Zod said:
Four Litre said:
AyBee said:
Four Litre said:
Pleased to meet to too Zod. You appear to either got out of bed the wrong side today or are a complete and utter cock. Judging by your posting, I can only assume the latter.
Unless your the chairman of DB, why the need to behave like an utter bell-end? Im guessing small guy with a keyboard syndrome?
Zod asked a pretty reasonable question IMO, I'm not sure why you've taken such a hostile approach to responding. It's perfectly reasonable to ask whether the OP actually understands the implications of what they're posting, or whether they're just forwarding on some sentences which sound scary...Unless your the chairman of DB, why the need to behave like an utter bell-end? Im guessing small guy with a keyboard syndrome?
Do I know what Im talking about? I like to think so as I have worked in finance for all my career, which is 25+ years and as a direct result of the 2008 crash am working on the separation of UK Retail and Investment banks. So as I say, I like to think I have a bit of background, not that it needs to be called into question when discussing a news article.
Shame PH has ended up this way...
Pardon my extreme ignorance on the subject matter– I don’t work in finance…
I’ve just checked via the great god of factual accuracy – Wikipedia, and it tells me that the worlds GDP is 73 trillion dollars.
Could one of you nice finance/banking chappies explain to me how you can have $many trillion of derivatives on this? Ignore the DB stuff for now…
Not being funny, I really would like to learn.
Maybe you should all get together over a conciliatory pint and write a “Big Finance for Dummies” book.
Ta in advance.
I’ve just checked via the great god of factual accuracy – Wikipedia, and it tells me that the worlds GDP is 73 trillion dollars.
Could one of you nice finance/banking chappies explain to me how you can have $many trillion of derivatives on this? Ignore the DB stuff for now…
Not being funny, I really would like to learn.
Maybe you should all get together over a conciliatory pint and write a “Big Finance for Dummies” book.
Ta in advance.
boxxob said:
sidicks said:
Zod said:
Unless he works in government or at one of the regulators, he must be a consultant or lawyer acting for one of those players if he is working generally on separation of retail and investment banks.
The fact he is so evasive speaks volumes!I and others have posted about the actual situation of DB.
Four Litre said:
So are you now saying I dont have 25+ years of experience!!!! I would suggest mums.net would be a better for you. You could b
h and whine all day to your hearts content.
h and whine all day to your hearts content. 
Touchy, much?! I have no idea how many years of experience you have and wouldn't dream of commenting on your job situation because I don't know you, I'm merely pointing out that I'd expect someone with 25 years of experience in finance to think "hmm, that figure sounds very high, I wonder if that's actually correct" rather than just quoting it for other people who don't work in finance to take at face value (because they legitimately don't understand).boxxob said:
you two have spent more time rounding on the OP than the content of his OP
You forget the OP's response to a reasonable question at the start of the thread...Four Litre said:
Pleased to meet to too Zod. You appear to either got out of bed the wrong side today or are a complete and utter cock. Judging by your posting, I can only assume the latter.
Unless your the chairman of DB, why the need to behave like an utter bell-end? Im guessing small guy with a keyboard syndrome?
Unless your the chairman of DB, why the need to behave like an utter bell-end? Im guessing small guy with a keyboard syndrome?
bucksmanuk said:
...how you can have $many trillion of derivatives on this?
No need to be sarky but it's a valid question. A derivative is a contract that derives its value from an underlying price of something. A very common derivative that will make up a significant chunk of DB's exposure is an IRS or interest rate swap. Lets say I am a bank and I agree to pay you a floating rate of interest every 6 months for 10 years in exchange for you to pay me a fixed rate of interest periodically every 6 months of say 5% for 10 years on say $100m. (I want rates to fall so I pay you less). The actual cashflows from this trade are the net interest payments on $100m every 6 months. The $100m might or might not exist somewhere, it doesn't matter. It's just a notional amount. Now lets assume I go out and hedge that trade with another person, that is to say do the exact opposite and agree to receive the floating rate for 10 years and pay the fixed... I have no net exposure to interest rates, i haven't leant any money to anyone and all my future cashflows cancel out but my gross notional derivatives exposure for the purposes of the daily mail are now $200m. IRS trades over $1bn are common, daily even, hourly if the duration is under 1 year, a busy IRS desk at a bank like Deutsche are buying and selling all day long and can easily rack up $50bn or more a day in 'gross exposure'. All it tells you is that they are a big bank. It's not unlike a bookie taking 200 bets for and against a horse; you don't need 200 underlying horses, you can bet on the same horse! If the bookie has 20,000 bets on the horse all it tells you is he is a big bookie, it doesn't tell you if he stands to win, lose or evens if the horse drops dead.Edited by anonymous-user on Tuesday 27th September 17:44
fblm said:
No need to be sarky but it's a valid question. A derivative is a contract that derives its value from an underlying price of something. A very common derivative that will make up a significant chunk of DB's exposure is an IRS or interest rate swap. Lets say I am a bank and I agree to pay you a floating rate of interest every 6 months for 10 years in exchange for you to pay me a fixed rate of interest periodically every 6 months of say 5% for 10 years on say $100m. (I want rates to fall so I pay you less). The actual cashflows from this trade are the net interest payments on $100m every 6 months. The $100m might or might not exist somewhere, it doesn't matter. It's just a notional amount. Now lets assume I go out and hedge that trade with another person, that is to say do the exact opposite and agree to receive the floating rate for 10 years and pay the fixed... I have no net exposure to interest rates, i haven't leant any money to anyone and all my future cashflows cancel out but my gross notional derivatives exposure for the purposes of the daily mail are now $200m. IRS trades over $1bn are common, daily even, hourly if the duration is under 1 year, a busy IRS desk at a bank like Deutsche are buying and selling all day long and can easily rack up $50bn or more a day in 'gross exposure'. All it tells you is that they are a big bank. It's not unlike a bookie taking 200 bets for and against a horse; you don't need 200 underlying horses, you can bet on the same horse! If the bookie has 20,000 bets on the horse all it tells you is he is a big bookie, it doesn't tell you if he stands to win, lose or evens if the horse drops dead.
A good explanation, cheers Edited by fblm on Tuesday 27th September 17:44
FN2TypeR said:
fblm said:
No need to be sarky but it's a valid question. A derivative is a contract that derives its value from an underlying price of something. A very common derivative that will make up a significant chunk of DB's exposure is an IRS or interest rate swap. Lets say I am a bank and I agree to pay you a floating rate of interest every 6 months for 10 years in exchange for you to pay me a fixed rate of interest periodically every 6 months of say 5% for 10 years on say $100m. (I want rates to fall so I pay you less). The actual cashflows from this trade are the net interest payments on $100m every 6 months. The $100m might or might not exist somewhere, it doesn't matter. It's just a notional amount. Now lets assume I go out and hedge that trade with another person, that is to say do the exact opposite and agree to receive the floating rate for 10 years and pay the fixed... I have no net exposure to interest rates, i haven't leant any money to anyone and all my future cashflows cancel out but my gross notional derivatives exposure for the purposes of the daily mail are now $200m. IRS trades over $1bn are common, daily even, hourly if the duration is under 1 year, a busy IRS desk at a bank like Deutsche are buying and selling all day long and can easily rack up $50bn or more a day in 'gross exposure'. All it tells you is that they are a big bank. It's not unlike a bookie taking 200 bets for and against a horse; you don't need 200 underlying horses, you can bet on the same horse! If the bookie has 20,000 bets on the horse all it tells you is he is a big bookie, it doesn't tell you if he stands to win, lose or evens if the horse drops dead.
A good explanation, cheers Edited by fblm on Tuesday 27th September 17:44
BigLion said:
PS If anyone thinks DB will be allowed to fail needs their head read.
Maybe. But the majority (approx 2/3s) of Deutsche is an investment bank and Merkel will not win an election for chucking taxpayers money at that. Especially with her weakened by growing unhappiness over immigration into Germany. Don't be surprised to see the retail side kept safe and the sexy parts snatched on the cheap by someone like Wells. Edited by BigLion on Tuesday 27th September 18:15
There's still US folk bitter about Bankers Trust who'd love to see that reversed. Plus others who don't like ze Germans doing well on Wall St. Large fines can help with that.
I don't work for Deutsche and I don't necessarily think they will need a bail out. They may well need to raise capital in the near future.
Edited by tonybhr on Tuesday 27th September 18:45
Strikes me it's no good blaming the internet for the gross bad manners of the few who resort to such antics. Either you are old enough to control yourself or not. If not, just don't read it. Unless of course you think you know all about everything. Which is what it sounds like. Trolls.
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