Deutsche Bank shuts proprietary credit trading desk in London

Hard on the heels of the news that Barclays bank has taken 2 emergency central bank loans exceeding £1.6bn, Deutsche Bank has shut down its proprietary credit trading desk in
London and is laying off some of the 14-strong team, a source familiar
with the matter said on Friday.

Earlier last month a source close to Deutsche Bank told Reuters the
bank was set to ditch its credit relative-value trading strategy used
by the London proprietary trading desk after losses of about $US135
million.

The chief executive of Deutsche Bank, Germany's biggest bank, says GLOBAL economic growth will take a hit as a result of the US subprime mortgage crisis.

“Growth, especially of private consumption in the United States,
will suffer because of the housing crisis and that can naturally not go
without negatively affecting the world economy overall,” Josef
Ackermann said in a column to be published in the German business daily
Handelsblatt overnight.

Mr Ackermann said many banks and investors affected by the credit
market turmoil that arose in the wake of the sub-prime crisis had
apparently taken risks that exceeded their size and risk-bearing
capacity.

“This is, to say it clearly, above all negligence on the part of the managements of these houses,” he said.

The distribution of credit risks in the international financial
system had not been transparent to supervisory authorities and market
participants, he said.

Deutsche Bank has declined to comment.
(source)

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About IanPJ

Ian Parker-Joseph, former Leader of the Libertarian Party UK, who currently heads PDPS Internet Hosting and the Personal Deed Poll Services company, has been an IT industry professional for over 20 years, providing Business Consulting, Programme and Project Management, specialising in the recovery of Projects that have failed in a process driven world. Ian’s experience is not limited to the UK, and he has successfully delivered projects in the Middle East, Africa, US, Russia, Poland, France and Germany. Working within different cultures, Ian has occupied high profile roles within multi-nationals such as Nortel and Cable & Wireless. These experiences have given Ian an excellent insight into world events, and the way that they can shape our own national future. His extensive overseas experiences have made him all too aware of how the UK interacts with its near neighbours, its place in the Commonwealth, and how our nation fits into the wider world. He is determined to rebuild many of the friendships and commercial relationships with other nations that have been sadly neglected over the years, and would like to see greater energy and food security in these countries, for the benefit of all. Ian is a vocal advocate of small government, individual freedom, low taxation and a minimum of regulation. Ian believes deeply and passionately in freedom and independence in all areas of life, and is now bringing his professional experiences to bear in the world of politics.
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