As Bloomberg reported, prosecutors have been reconstructing how Monte Paschi’s former managers misrepresented the lender’s finances in the years through the two deals signed with Deutsche Bank in 2008 and Nomura in 2009. The investigation revealed Monte Paschi arranged the transactions to hide billions in losses that led to false accounting between 2008 and 2012, according to a prosecutors’ statement released Jan. 14, when they completed the investigation. However, in a new development in the neverending saga chronicling Deutsche Bank's illicit activities, earlier today Bloomberg reported that Deutsche Bank, indicted for colluding with Monte dei Paschi to conceal the Italian lender’s losses, "mismarked the transaction and dozens of others on its own books, according to an audit commissioned by Germany’s regulator."
In total, Deutsche Bankers arranged 103 similar deals with a total value of 10.5 billion euros ($11.8 billion) for 30 clients, according to the audit, Bloomberg writes citing the audit. In an attempt to "clean up balance sheets", the Frankfurt-based lender, Germany’s largest, adjusted the accounting of 37 of those trades in 2013, in addition to Monte Paschi’s, changing them from loans that had been kept off the books to derivatives.
In a flashback to Lehman Brother's infamous "Repo 105" designed to make the Lehman balance sheet appear healthier than it was for quarter end purposes, often times by tens of billions of dollars, the deals structued by Deutsche Bank were known internally as "enhanced repos", which had two components. On one hand, the enhanced repos allowed clients to avoid using mark-to-market accounting, which would have forced them to immediately recognize changes in value, according to the audit. Instead, the deals were structured to be eligible for accrual accounting, allowing counterparties to book gains or losses as they occurred over a longer period of time. On the other, the repos kept the loans off Deutsche Bank’s balance sheet by canceling them out with separate liabilities created in the transactions, according to deal documents reviewed by Bloomberg. Effectively, this mean that Deutsche Bank investors were unaware of the implicit risks carried on the bank's books courtesy of off balance sheet transactions.
I have an extended vocabulary from a fuckton of reading, I read the Silmarillion and Shakespeare without touching a dictionary, I make normies disgusted by my use of 'big words' to the point of hatemail, and even I find some of this hard to follow. What I'm getting is "the Deutsche Bank relables debt as asset"?
Isaac Wood
That goy owes us 100 million so he is a asset because we can shake him down.
What was the quote "if you have a little debt the banks owns you, if you have a lot of debt you own the bank." not sure if that applies here tho.
Oliver Gray
tell me some big words (for you)
Brody Williams
this. and all the "white brothers" will happily jump at the chance to get a piece of the german cake
Austin Smith
by "white brothers" do you mean kikes or anglokikes?
Jonathan Nguyen
anglos, poles, probably americans too. maybe even the danes and french
Michael Russell
Everyone who thinks they have a grievance with Germany, so Poles, Brits, French, probably every one of the PIGS because they think we owe them even more gibs.
Nicholas Russell
There is onthing wrong with DB go- err guys.
Nothing happened last year, there will be no happening, please remain calm and put more money in your bank account.
Gavin Powell
They will probably spin it as evil german "white" Nazis infiltrated the bank and ran it into the ground.
Jonathan Sanders
This is just another multi-layered scam by jewish bankers.
-Deliberately destroy the bank's value with ridiculous schemes -Get free money from country x -Degenerate the economy, thus lives, of the native population And so on.
Tyler Torres
...
Mason Johnson
Joe Ackermann, you are the endboss, the lord of money. Thanks to you, there’s always fresh, clean money in all the ATM machines. And when someone is short on cash, you’ll be glad to help and lend a brother some money without asking silly questions. And even if the people working in your office are smaller than ants, you’ll carefully lift them up. This is true greatness and that’s why Germany will be forever grateful to you.
You also gave us your daughter, the short movie director, who will maybe one day become a director of longer movies and win an award at an independent movie festival (knock on wood).
Nathaniel Smith
So what's the tl;dr of this whole shitstorm?
Kikes once again walk into a country, set up financial shenanigans that progressively destroy its economy over the span of decades, and then try to tell everyone that it's all okay while the country is teetering on the brink of collapse?
Logan Adams
This time they filled the country with muslims first.
Chase Richardson
Is there a problem with Tolkien concerned Gobbels?
Uh, it looks like all that is happening is that the tiny rise that happened the day before is coming back down to where it was. The scale of the units on that graph seem to be chosen to maximize fucking nothing for a clickbait article.
I hope for a crisis, but this doesn't look anything like a doom bell.
