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Goldfinger

Deutsche Bank's `mistakes' Will Curb Profit

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Sept. 20 (Bloomberg) -- Deutsche Bank AG, Germany's biggest bank, will write down the value of leveraged loans and scale back hiring plans after making ``mistakes'' during the credit boom that ground to a halt in the past two months, Chief Executive Officer Josef Ackermann said.

``We have certainly also made exaggerated commitments in the whole euphoria,'' Ackermann said in an interview in Berlin with Germany's ZDF television to be broadcast later today. He said the bank probably won't proceed with plans to hire about 6 percent more people though he doesn't expect to cut jobs.

...

The Federal Reserve lowered its benchmark lending rate by half a percentage point on Sept. 18 in an effort to prevent an economic slump in the U.S. as a result of the turmoil in credit markets.

Time Bomb

``There is no bigger time bomb ticking,'' he said. A recession is unlikely, although U.S. economic growth will probably slow down by between 0.5 and 1 percentage points, he said.

The decision to cut rates was ``right'' because it gives ``a psychological boost,'' Ackermann said. ``One shouldn't interpret this as an act of desperation.''

More to come from Deutsche soon?

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Joe has woken up now. He thinks banks (incl. Deutsche) might have to pay for their mistakes in the currenct crisis. :lol: He also doesn't think it's that contained anymore. He rather thinks it could spill over into the rest of the economy. :lol:

Article in German: http://www.spiegel.de/wirtschaft/0,1518,528592,00.html

Finally GF, They are starting to own up to the mess they've created, first of many analysts I reckon to be changing their opinion's on the contagion. Just look to the credit card companies in the US who are now reporting huge defaults on credit card payments. Rabbits trapped in headlights spring to mind!

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Finally GF, They are starting to own up to the mess they've created, first of many analysts I reckon to be changing their opinion's on the contagion. Just look to the credit card companies in the US who are now reporting huge defaults on credit card payments. Rabbits trapped in headlights spring to mind!

Yes. What you could read many months ago on here or in good financial publications slowly feeds through to mainstream. It's funny somehow, and I know, who I better listen to.

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Finally GF, They are starting to own up to the mess they've created, first of many analysts I reckon to be changing their opinion's on the contagion. Just look to the credit card companies in the US who are now reporting huge defaults on credit card payments. Rabbits trapped in headlights spring to mind!

Queue GOM with his list of stages.

I reckon BoA made an huge mistake by buying countrywide.

What were they thinking? This had all bottomed out and they were getting a bargain?

One to watch I think.

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Queue GOM with his list of stages.

I reckon BoA made an huge mistake by buying countrywide.

What were they thinking? This had all bottomed out and they were getting a bargain?

One to watch I think.

Jim Sinclair's opinion was that possibly the $4bn or so BoA paid was what Countrywide would have caused in losses to them derivatives-wise anyway.

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