Deutsche Bank pegs its derivatives exposure at about $22 billion — and faces challenges in shedding those assets
By Mark Decambre and Joy Wiltermuth
Deutsche Bank created over the years a whopping $53.5 trillion (€48 trillion) book of derivatives contracts that it now is seeking to unload, but experts say getting rid of those assets is no easy task. The plan, as part of Deutsche Bank’s biggest restructuring in decades, is to see its derivatives and other unwanted financial instruments that are now housed in its Capital Release Unit, or “bad bank,” be sold or wound down over time. …Banking expert Karen Petrou told MarketWatch that she was unconcerned about systemic risks tied to Deutsche Bank’s derivatives portfolio. “I tend to not worry about derivatives exposure, because all counterparties have priced or protected themselves from adversity,” she said.