Deutsche Bank managed subprime mess that has swamped its rivals. Now it’s chief executive says that he expects further writedowns at other banks.
“One must expect that the next six to nine months will remain difficult for the financial markets,” Mr. Ackermann said in a speech to entrepreneurs in Frankfurt, according to Bloomberg News. Mr. Ackermann said he expects the declining value of both asset-backed securities and leveraged loans as contributors to these write-downs.
Earlier this month, the bank said that it did not suffer any subprime-related losses in the fourth quarter of 2007, though market turbulence did affect its overall profit and it could not rule out future write-downs of other loans.
Deutsche Bank reported a $3.1 billion write-down in its third quarter tied to subprime-backed investments. It currently holds about $36 billion in leveraged loans.
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