Economy
Related: About this forumBank Losses From Swiss Currency Surprise Seen Mounting
The $400 million of cumulative losses that Citigroup Inc. (C), Deutsche Bank AG and Barclays Plc (BARC) are said to have suffered from the Swiss central banks decision to end the cap on the franc may be followed by others in coming days.
The losses will be in the billions -- they are still being tallied, said Mark T. Williams, an executive-in-residence at Boston University specializing in risk management. They will range from large banks, brokers, hedge funds, mutual funds to currency speculators. There will be ripple effects throughout the financial system.
Citigroup, the worlds biggest currencies dealer, lost more than $150 million at its trading desks, a person with knowledge of the matter said last week. Deutsche Bank lost $150 million and Barclays less than $100 million, people familiar with the events said, after the Swiss National Bank scrapped a three-year-old policy of capping its currency against the euro and the franc soared as much as 41 percent that day versus the euro. Spokesmen for the three banks declined to comment.
Marko Dimitrijevic, the hedge fund manager who survived at least five emerging-market debt crises, is closing his largest hedge fund, which had about $830 million in assets at the end of the year, after losing virtually all its money on the SNBs decision, a person familiar with the firm said last week.
http://www.bloomberg.com/news/2015-01-19/bank-losses-from-snb-surprise-seen-mounting.html
Fred Sanders
(23,946 posts)Art_from_Ark
(27,247 posts)were dumping euros before the announcement.
sendero
(28,552 posts)... these professional gamblers (hedge funds, trading desks at large banks) lose their ASS is when they manage to wheedle a taxpayer paid bailout.
A "hedge" fund in particular, is supposed to be HEDGED. If you get wiped out by a single event like that, you weren't HEDGING you were GAMBLING.