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Despite "Healthy" Stress Test, Deutsche Bank Replaces CFO With Goldman Sachs Partner
Deutsche Bank executives are dropping like flies. Just days after receiving a clean bill of health from Europe's oh-so-stressful stress-tests, Deutsche Bank has decided that longtime finance chief Stefan Krause needs to be replaced. Perhaps most interesting is the bank that faces 'serious financial reporting problems' in the US and has a derivatives book literally the size of (actually 20 times bigger) than Germany, has decided the right man for the job is an ex-Goldman Sachs partner. Marcus Schenck, according to WSJ, will replace Krause, having worked at German utility E.ON until last year when he joined Goldman.
Deutsche Bank AG is replacing its longtime finance chief, Stefan Krause , with a Goldman Sachs Group Inc. partner, Marcus Schenck, according to people familiar with the matter.
Mr. Krause, who has faced criticism from investors over his financial leadership of the giant German bank, will take a newly created position within Deutsche Bank, one person said.
From 2006 through 2013, Mr. Schenck was finance chief of German utility E.ON AG . He joined Goldman Sachs last year.
Mr. Krause, who joined Deutsche Bank from BMW AG in 2008, presided over Deutsche Bank’s finances during a tumultuous period.
An examination by the Federal Reserve Bank of New York last year found that the bank’s giant U.S. operations suffer from a variety of serious financial-reporting problems that the lender has been aware of for years but hasn’t fixed, according to documents reviewed by The Wall Street Journal.
Mr. Krause led a companywide effort to improve the quality of its financial reporting, a project the New York Fed criticized as inadequate, the Journal reported.
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Krause wasn't at Goldman long... having left E.ON in July 2013...
E.ON SE’s long-standing CFO, Marcus Schenck, has informed the Chairman of the Supervisory Board that he does not wish to have his employment contract extended.
“It wasn’t an easy step to take after 7 years as CFO of E.ON. I have not decided against E.ON but rather in favor of Goldman Sachs. The chance to return to the Investment Banking Division in London as a partner with Goldman Sachs and take over the management of Investment Banking Services for the EMEA region offers a great opportunity to work with major international clients.“
Marcus Schenck will join Goldman Sachs as a member of the Investment Banking Division’s Global Operating Committee.
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We wonder if this had anything to do with Schenck's replacement?
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Goldman: There can be only one!
Black men that get it and speak the truth....WOW. Sorry to thread jack, but this video is Urgent to the Election. Please watch, and spread wide. I wish the tylers would post this to the front page.
https://www.youtube.com/watch?v=BUSRZo1BE5o
Clearly, those men are racist. The tylers are wise to avoid posting that.
maybe we should just go with a revserse Eugenics theme?, that certainly cant be razist......
I read this article headline as "Goldman Sachs Needs a Douche!"
do you want some nailgun?
I need a bigger tinfoil hat since this all seems like GS is forcing Deutsche Bank into Lehman type scenario.
At least he is still alive.
For now...
gold-is-not-dead:
Oh. I thought it meant that Deutsche Bank would be safe for now. They'll get TBTF bail-outs. But your idea is good too. Maybe I missed something.
They will certainly get a trill in bailout but will be definitelly blamed big time. The only economy in west actually producing stuff. Bam, blame zi germanz and take a piece from them to dilute the global risk.
What we (anonymous bloggers) do or think is fucking irrelevant.
same as it ever was...
Of course they fired the guy, you can't get a bail out if the bank survives the stress test...
And now they have someone to blame when it does fail the stress tests.
Now if only White men could believe the same about their 'leaders'.
This "utility" E-ON, is a good example of tax farming and financial engineering; I'm tempted to interpret this as a statement that the "leadership" in Germany is still firmly attached to the Fed. Teat; and to not look for much of any significant dissenting actions on their part; politically or financially.
To clarify that thought; this kind of guy is exactly the type of bullshit artist that our political/ financial establishment likes and likes to "work with"; if his involvement with E-ON is indicative; and it almost certainly is.
my best friend's sister makes $80 /hour on the internet . She has been laid off for 7 months but last month her paycheck was $13987 just working on the internet for a few hours. visit site... www.Yelptrade.com
Bigger is better, no?
Just like Royalty...
They are interbreeding.
GS is a job placement firm...right?
ROund and round the revolving door goes. Where it stops, Goldman knows! - Carnival Barker
It's a sect
Oh Vey, what was that song..
Yews to the left of me, yews to the, here I am stuck in the middle with Yew......
Must be getting close to some shit, as we are seeing squid assume overt command, instead of covert.....
Completely "unforeseen"... LMFAO!!!
Hey Tyler, did you know that if you beat Marcus Schenck in a rap battle, you become him?
True story.
Doing Satan's work.
Goldman Sachs... they're everywhere you want to be. lol
The State Department made a call...
Krause should consider himself lucky
no need to "jump" out of tall building ...
wasn't he also in The Scorpions?
Schenck is often a jewish name. I could not find info about this person but would like to know.
Is this another jewish person being placed into a key position in Germany's most important bank.
Yes, as opposed to say Michael or Rudy Schenker (without the 'c') of German Rock band/s fame - UFO, Scorpions.
Here's what I think of your black leadership video:
https://www.youtube.com/watch?v=ryDOy3AosBw
(I just like that song. It has nothing to do with black leadership.)
I don't quite understand this derivative exposure thing. What kind of derivative? Are they betting on interest rates rising or interest rates falling? Which scenario causes the bank to collapse?
They sell interest rate swaps to borrowers who wish to exchange a variable interest obligation for a fixed one, because these borrowers are afraid interest rates might rise. The trick, in this business, is to have something similar to a strategic nuclear standoff with the central banks. If your exposure to rising interest rates is sufficiently massive, then you can credibly threaten the central banks with armageddon, should they dare to raise interest rates, and your risk is paradoxically low. You can never be too big, when you're playing the too-big-to-fail game.
Squid needs to keep a close eye on their derivatives positions.
Pass the nailgun!
GS alumni.
Just the guy to clear up those pesky reporting problems.
"Goldman-Sachs...It's how you spell transparency."
I've heard Goldman can help people get around regulations. Sounds like a good hire.
From Businessweek:
Dr. Marcus Schenck served as the Chief Financial Officer and Member of Management Board of E.ON SE from December 1, 2006 to October 1, 2013. Dr. Schenck served as the Co-Head of German and Austrian Investment Banking at Goldman, Sachs & Co. He served as a Member of the Management Board of E.ON Energie AG since 2006. He served as Managing Director of Goldman Sachs & Co. oHG since 2001 and as its Partner since 2002. He served at McKinsey & Co., from 1991 to 1995 and served as Senior Project Manager of McKinsey & Co. (Germany) from 1995 to 1997. He serves as a Member of Supervisory Board of E.ON Global Commodities SE. He serves as a Member of Supervisory Board of E.ON Energy Trading SE. He served as Member of Supervisory Board at Commerzbank AG since May 15, 2008 until September 10, 2013. He served as a Member of Advisory Board of HSBC Trinkaus & Burkhardt AG since February 2008 until September 30, 2013. He served as an Independent Director of AXA Group from April 2011 to October 10, 2013. He served as a Member of the Supervisory Board at E.ON Ruhrgas AG since January 1, 2007. Dr. Schenck served as a Director of Open Joint-Stock Company E.ON Russia and OAO OGK-4 (now JGC Quadra - Power Generation) from December 2007 to June 24, 2011. He served as a Member of the Supervisory Board of Dresdner Bank AG. He has been Member of the Investment Banking Division's Global Operating Committee at Goldman Sachs since October 2013. Dr. Schenck is a graduate of economics from the University of Bonn and the University of Berkeley.
a little off topic, but remember Taibbi's Great bubble machine?
http://www.rollingstone.com/politics/news/the-great-american-bubble-mach...
Joe Wiesenthal at BI basically tries to paint Taibbi as a know nothing... hanging his initial hat on the idea that CDOs aren't derivatives. Except that they are, but nevermind - a CDO is really a way to pretend to disperse risk, and apart from bullshit ratings, you can use bullshit maturity and reset dates. All monkey tricks - shit that is wildly unethical and deceptive but dishonest. Maybe in that sense a CDO isn't a regulated derivative, but it is, by definition, of value derived from underlying..
[ahem]
Anyway - what do we mean by "derivative exposure" above? Locks versus options? what about two legs on a trade that cancel each other out? In other words - I don't doubt that the whole system is absurdly over-levved. Granted.
But I think this 55 trillion number is bullshit. Am I wrong? In the sense that, even in a worst case scenario, they will never, ever owe 55 trillion based on "derivatives" contracts. Which isn't to say Taibbi is somehow Sarah Palin... clearly derivatives do involve great systemic risk...because everyone is so over-leveraged.
Taibbi might overstate his case some, but overstating is not the same as being entirely wrong...
The banksters' message: "Bubbles are not a bubble. A room full of bubbles is not a bubble, but only a room full of bubbles. They can't pop all at once like last time; we think; we hope."
An American, not US subject.
Tiny bubbles (tiny bubbles)
In the wine (in the wine)
Make me happy (make me happy)
Make me feel fine (make me feel fine)
Tiny bubbles (tiny bubbles)
Make me warm all over
With a feeling that I'm gonna
Love you till the end of time...
Tiny Bubbles, Wayne Newton
It's all fun and games until someone can't pay.
Sorry, there is no profit in their use, only in their threat use.
Nice picture.
They would probably love to shoot their derivatives to space... but I fear it won't be so easy...
Does this confirm Goldman as the CIA primary banker?
Deutsche Bank just replaced their CFO with a monitor from the home office.
An American, not US subject.
"The Nazis lost the war the Rothschilds wanted, and the Germans have been paying ever since."
I have read that, while Deutsche Bank reportedly has a"derivatives" exposure of about 55 Trillion Euros (about $70 Trillion USD) , in fact that amount may be even higher by short-lived sales of derivatives for cash, then buying those derivatives back again with several large financial institutions, and perhaps even some central banks.
However, even with a"derivatives" exposure of about 55 Trillion Euros (about $70 Trillion USD), NO ONE knows the market-to-market" (REAL) value of those derivatives. Are they worth 100% of "face value" or 90% or 75% or 25% or even 0%? In short, if these 55 Trillion Euros of derivatives turn out be worth (on average) only 75% of their "face value", their REAL value in CASH will be about 41.25 Trillion Euros ($55.24 Trillion USD) - thus Deutsche Bank will take an enormous "hit" in terms of its net assets.
No wonder Goldman-Sachs sent in "one of the boys" to try to save Deutsche Bank, at least temporarily. When the financial system begins to crash, someone is going to out of a LOT of money - and you can be certain it will NOT be Goldman-Sachs (backed up by the NY Fed) or the owners/stockholders of Deutsche Bank.
That derivative exposure will go to the moon. We have a new virus - DeutscheBola.
Derivatives are used to by banks to steal profits from the future and deposit them on today's P&L.
Why does God (and therefore God's bankers) need to steal fiat profits from the future?
80% of the shares of DB are owned by institutional investors ( including banks; read FED ). Therefore a perfect dark pool to hide global institutional loses. So Goldman only require China and Russia for the perfect circle jerk. GOOD LUCK WITH THAT ONE SCHMUCKS.
interesting... lot of changes happened in Die Erste last Sunday as well. Anyone from inside?
ha! ha! HA!