Boiler Room: The Official Stock Market Discussion
Only now just getting in on stocks, starting out with robinhood. My homeboy mentioned AMD was a good one.
I did some searching and i see AMD was pretty popular here dating back 5 or so years when it was just a few dollars. You guy still high on it now?
I did some searching and i see AMD was pretty popular here dating back 5 or so years when it was just a few dollars. You guy still high on it now?
Futuristic Eskimo
All Star
Wild Trading Day at Deutsche Bank Raises Questions on U.S. Risk
U.S. regulators have spent much of the past decade trying to get a better handle on beleaguered Deutsche Bank AG. A wild trading day earlier this year shows how hard that will be.
Traders at the German lender’s U.S. unit suffered a one-day loss in the first quarter that was 12 times what internal risk officers estimated for regulatory purposes it might lose on a typical day, according to a previously unreported May filing. Deutsche Bank’s U.S. trading loss was offset by related gains in London, according to people with knowledge of the bank’s operations.
The U.S. loss -- unrivaled in other banks’ first quarters and the unit’s own recent history -- didn’t warrant a mention in Deutsche Bank’s earnings report. But it raises questions about U.S. regulators’ ability to have an accurate picture of a foreign bank’s operations if metrics such as value-at-risk, or VaR, show only a fraction of potential trading exposure. The issue is particularly stark at Deutsche Bank, which has increased capital levels at its U.S. business after multiple failed stress tests and cease-and-desist orders.
"Even a loss of two or three times VaR on a given day is unlikely. Twelve times VaR is extraordinarily unlikely," said Andrew Lo, a finance professor at MIT Sloan School of Management, speaking generally of trading losses.
Multiple U.S. regulators, including the Federal Reserve, inquired about the outsized loss, according to a person with knowledge of the discussions. Eric Kollig, a Fed spokesman, and Richard Loconte, a spokesman for New York’s Department of Financial Services, which supervises part of Deutsche Bank’s U.S. business, declined to comment.
In such situations, U.S. regulators generally have to take bank executives at their word. Foreign banks don’t typically inform U.S. regulators of trading activity conducted by their non-U.S. units -- a chronic source of concern, former regulators said, asking not to be named speaking about a bank they previously supervised.
"Such a high trading loss is off the charts," said Gregor Weiss, a professor at Leipzig University and an expert in financial risk management. "It’s definitely something a supervisor will look into."
Deutsche Bank’s filing to regulators didn’t disclose the exact size of the loss, but there are hints. The unit’s average regulatory value-at-risk measure during the period was $30.8 million. Because daily variations in the figure aren’t disclosed, it’s unclear what the day’s loss was.
Negative Quarter
The U.S. holding company ended the quarter with trading revenue of negative $64 million, indicating losses on trading positions, while the comparable subsidiaries of Barclays Plc and Credit Suisse Group AG each reported more than $100 million of positive revenue, according to regulatory filings. The figures in those reports exclude fees, commissions and interest income from bonds in inventory. Including that income, Deutsche Bank’s unit had positive revenue.
Read more: Deutsche Bank is said to be scolded by Fed
Days after the quarter closed, Deutsche Bank named Christian Sewing -- previously its deputy chief of risk -- to take over as chief executive officer. The firm finished a months-long strategy review shortly thereafter, announcing U.S. operations would significantly shrink as part of a global overhaul.
Sewing is whittling equities and corporate finance units and planning to cut global headcount to significantly below 90,000 from about 97,000. A number of leaders and dealmakers in the U.S. have left the bank amid the shakeup. In a letter to staff this month, Sewing said the firm has taken steps to reorganize its business, bolster capital and reduce risks.
“Many of you are sick and tired of bad news,” he acknowledged.
they need to shutter this piece of shyt already
U.S. regulators have spent much of the past decade trying to get a better handle on beleaguered Deutsche Bank AG. A wild trading day earlier this year shows how hard that will be.
Traders at the German lender’s U.S. unit suffered a one-day loss in the first quarter that was 12 times what internal risk officers estimated for regulatory purposes it might lose on a typical day, according to a previously unreported May filing. Deutsche Bank’s U.S. trading loss was offset by related gains in London, according to people with knowledge of the bank’s operations.
The U.S. loss -- unrivaled in other banks’ first quarters and the unit’s own recent history -- didn’t warrant a mention in Deutsche Bank’s earnings report. But it raises questions about U.S. regulators’ ability to have an accurate picture of a foreign bank’s operations if metrics such as value-at-risk, or VaR, show only a fraction of potential trading exposure. The issue is particularly stark at Deutsche Bank, which has increased capital levels at its U.S. business after multiple failed stress tests and cease-and-desist orders.
"Even a loss of two or three times VaR on a given day is unlikely. Twelve times VaR is extraordinarily unlikely," said Andrew Lo, a finance professor at MIT Sloan School of Management, speaking generally of trading losses.
Multiple U.S. regulators, including the Federal Reserve, inquired about the outsized loss, according to a person with knowledge of the discussions. Eric Kollig, a Fed spokesman, and Richard Loconte, a spokesman for New York’s Department of Financial Services, which supervises part of Deutsche Bank’s U.S. business, declined to comment.
In such situations, U.S. regulators generally have to take bank executives at their word. Foreign banks don’t typically inform U.S. regulators of trading activity conducted by their non-U.S. units -- a chronic source of concern, former regulators said, asking not to be named speaking about a bank they previously supervised.
"Such a high trading loss is off the charts," said Gregor Weiss, a professor at Leipzig University and an expert in financial risk management. "It’s definitely something a supervisor will look into."
Deutsche Bank’s filing to regulators didn’t disclose the exact size of the loss, but there are hints. The unit’s average regulatory value-at-risk measure during the period was $30.8 million. Because daily variations in the figure aren’t disclosed, it’s unclear what the day’s loss was.
Negative Quarter
The U.S. holding company ended the quarter with trading revenue of negative $64 million, indicating losses on trading positions, while the comparable subsidiaries of Barclays Plc and Credit Suisse Group AG each reported more than $100 million of positive revenue, according to regulatory filings. The figures in those reports exclude fees, commissions and interest income from bonds in inventory. Including that income, Deutsche Bank’s unit had positive revenue.
Read more: Deutsche Bank is said to be scolded by Fed
Days after the quarter closed, Deutsche Bank named Christian Sewing -- previously its deputy chief of risk -- to take over as chief executive officer. The firm finished a months-long strategy review shortly thereafter, announcing U.S. operations would significantly shrink as part of a global overhaul.
Sewing is whittling equities and corporate finance units and planning to cut global headcount to significantly below 90,000 from about 97,000. A number of leaders and dealmakers in the U.S. have left the bank amid the shakeup. In a letter to staff this month, Sewing said the firm has taken steps to reorganize its business, bolster capital and reduce risks.
“Many of you are sick and tired of bad news,” he acknowledged.
they need to shutter this piece of shyt already
ADevilYouKhow
Rhyme Reason
Should be an exciting summer at this rate
That one month chart for the Dow looks pretty impressive
That one month chart for the Dow looks pretty impressive
ADevilYouKhow
Rhyme Reason
Chinese leaders ‘absolutely confused’ by Trump’s demands on trade - POLITICO Chinese leaders ‘absolutely confused’ by Trump’s demands on trade — POLITICO
BushidoBrown
Superstar
this is incredibly dope. thanks for sharing this
this dude's journey is inspiring and glad to see a black dude doing it big in finance and sharing other black ppl's success stories
+rep
dish lowry
Pro
a very interesting IPO opens on wednesday. UXIN, a Chinese used car website (blah), but Dicaprio is their spokesperson & they're running expensive ads all over china. i'm buying in.
levitate
I love you, you know.
Took my 401k contributions down to 1%.
The shyt is only up 1% YTD.
I can make your than that by putting it in to an Ally savings account (1.65%).
The shyt is only up 1% YTD.
I can make your than that by putting it in to an Ally savings account (1.65%).
Last edited:
If you're company offers a match, you should contribute up until the max match at least so that you are getting that free moneyTook my 401k contributions down to 1%.
The shyt is only up 1% YTD.
I can make your than that by putting it in to an Ally savings account (1.65%).
Domingo Halliburton
Handmade in USA
The stock boards on reddit love it.
Domingo Halliburton
Handmade in USA
GE selling off more business units. What else is new?
Fix your 401k.. you should be up more than thatTook my 401k contributions down to 1%.
The shyt is only up 1% YTD.
I can make your than that by putting it in to an Ally savings account (1.65%).
Domingo Halliburton
Handmade in USA
To be fair the S&P is only up about that much YTD. We had the worst first quarter in 3 years or something like that.
My mid cap 401k is up 8% YTD... Large cap is up 4.5%
