Deutsche Bank Faces Possible $60 Million Derivative Loss (Really? Is that all?)
When I saw that headline, I was shocked.
Published on Bloomberg, the story goes, "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."
Made a bet? Hey, isn't that gambling? As in, with depositor's money? Investor's money?
After reading the first paragraph. I didn't really care to read anymore. What made me look twice was the amount. Only $60 million. Not even $100 million!
$60 million is such an insignificant amount, when compared to the potential derivatives floating around out there in the world.
Over the past few years, I've seen different articles that have reported total global derivatives in the banking and financial system to be as high as $1.5 QUADRILLION! Hold on Hank! We are talking QUADRILLION, a number you might hear in space talk - you know, like it's 85-quadrillion feet to Mars, or something like that.
Deutsche Bank's total derivative risk has been reported at up to $47 Trillion. No telling how much hydrogen has been pumped into this blimp!
Deutsche Bank should hope and pray that $60 Million is the extent of their derivative losses. But maybe the cake has already been baked with a big bomb in the center.
Only time will tell. As in tick, tick, tick...
Source:
60 million.... Wow why even report it? Everything's fine continue consuming and investing in mutual funds.