http://www.bloomberg.com/apps/news?pid=20601087&sid=a8zYbqrxQTn8&refer=homeOct. 27 (Bloomberg) -- Deutsche Bank AG, Germany's biggest bank, lost more than $400 million on equity derivatives trades as stock markets headed for their biggest rout since the 1930s, two people with direct knowledge of the matter said.
The loss, equal to almost half of the Frankfurt-based company's second-quarter revenue from equity sales and trading, is a black eye for Richard Carson, global head of equity derivatives, and may signal more job losses at the bank.
``Everybody assumed most of the job cuts would be in fixed income, but when you incur a loss of more than $400 million in equity derivatives that might warrant cuts across asset classes as well as fixed income,'' said Bahadour Moussa, who specializes in derivatives recruitment at London-based Pelham International.
Deutsche Bank, led by Chief Executive Officer Josef Ackermann, may post its second quarterly loss of the year this week on writedowns and slowing revenue from investment-banking, according to the median estimate of six analysts. At the investment bank, co-headed by Anshu Jain, equity sales and trading revenue sank 49 percent in the first half as customers shunned structured products. The credit-crisis spread to equity markets in the third quarter, and the Standard & Poor's 500 Index is now heading for its worst month since 1938.
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