'Costly Defeat For Deutsche Bank': More Lawsuits Expected

Joseph Ackermann CEO of Deutsche Bank, the world's most highly-leveraged financial institution.

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Source - Der Spiegel

Germany's highest civil court has ruled that Deutsche Bank should have warned its customers of the risks of an exotic investment product it sold in the run-up to the financial crisis. The landmark ruling has huge implications for the banking industry and could unleash a wave of similar cases, with compensation possibly running into the hundreds of millions.

The amount of money at stake is peanuts for a bank that made over €2.3 billion ($3.3 billion) in profit last year. But the repercussions of the €541,074, plus interest, that Deutsche Bank will now have to pay in compensation to Ille Paper Service could be large enough to keep financial executives awake at night. The bank's lawyer even went so far as to warn of a "second financial crisis."

The presiding judge, Ulrich Wiechers, ruled that Deutsche Bank had abused its obligation to give its customers proper advice. The product, called a "spread ladder swap," was essentially a bet on how interest rates would develop in the future. The judge said that the bank did not explain the risk of the product properly, particularly given the fact that the risk to the customer was unlimited if they lost the "bet."

There was also a conflict of interest, the court ruled, as the bank was effectively betting against its own customer and giving them advice at the same time. Wiechers also said that the bank had deliberately structured the product to the customer's disadvantage, in order to make a profit from the deal.

A wave of lawsuits are now expected.

Continue reading...

Deutsche Bank headquarters in Germany.

Comments

[DailyBail]

Documents obtained by The Daily Beast reveal how pedophile hedge fund mogul Jeffrey Epstein escaped a hefty jail sentence despite overwhelming evidence of sex crimes with dozens of young girls. Conchita Sarnoff and Lee Aitken on how the fear and intimidation experienced by victims during pre-trial proceedings, combined with a ferocious, protracted campaign to undermine the prosecution, culminated in a set of charges that became a virtual slap on the wrist.

http://www.thedailybeast.com/blogs-and-stories/2011-03-25/jeffrey-epstein-how-the-billionaire-pedophile-got-off-easy/?cid=hp:mainpromo1#

read this one...

[DailyBail]

The President Is Avoiding the Constitution - The Plain Truth on Undeclared Wars

http://revolutionarypolitics.tv/video/viewVideo.php?video_id=14407

[DailyBail]

http://www.presstv.ir/detail/171607.html

Bahraini authorities have razed to the ground a hospital west of the country for providing medical services to injured anti-government protesters.

[DailyBail]

Fears rise that Japan could sell off U.S. debt

http://www.washingtontimes.com/news/2011/mar/24/fears-rise-that-japan-could-sell-off-us-debt/

[DailyBail]

Rebels thank France but want 'outside forces' to quit Libya

LIBYA'S rebels have thanked France for its role in the Western-led military blitz against the Gaddafi regime but said "outside forces" could now leave the country, in a letter published overnight.

"In the middle of the night, your planes destroyed tanks that were set to crush Benghazi. ... The Libyan people see you as liberators. Its recognition will be eternal," wrote rebel leader Mahmoud Jibril in the letter addressed to President Nicolas Sarkozy, published by the French daily Le Figaro.

However, Mr Jibril said: "We do not want outside forces. We won't need them. We will win the first battle thanks to you. We will win the next battle through our own means."

Read more: http://www.news.com.au/breaking-news/rebels-thank-france-but-want-outside-forces-to-quit-libya/story-e6frfku0-1226028693457#ixzz1HjMX2Yxm

[Sagebrush]

"Documents obtained by The Daily Beast reveal how pedophile hedge fund mogul Jeffrey Epstein escaped a hefty jail sentence despite overwhelming evidence of sex crimes with dozens of young girls."

I'm surprised he hasn't been castrated with a 12 gauge shotgun by the father of one of those young girls.

[TR]

Read about the poor bankers & all links & then watched George Carlin again.
Thanks George for keeping my head screwed on straight & feet flat on the ground.

[john]

Syrian Turmoil Could Benefit the Region

http://www.jinsa.org/node/2253

[snip]

but here it is with at least as much promise as peril if we can figure out how to take advantage of it.

Caution: Middle East under construction

http://www.haaretz.com/weekend/week-s-end/caution-middle-east-under-construction-1.351743

[snip]

...take advantage of these opportunities, will be able to leverage the inevitable process to reinforce Israel's power and influence in the region.

[john]

Blue Cross Blue Shield Probe Expanded by Justice Department

http://www.businessweek.com/news/2011-03-26/blue-cross-blue-shield-probe-expanded-by-justice-department.html

[snip]

The Justice Department has been looking for ways to cut medical costs as the government sets up the health-care system established by legislation signed a year ago this week by President Barack Obama.

In October, the department sued Blue Cross Blue Shield of Michigan for allegedly entering agreements that raised hospital prices. Last month, the department pressured United Regional Health Care System in Wichita Falls, Texas, to agree to stop entering into contracts with insurers that make it harder for them to work with rivals.

[Cheyenne]

Isn't Deutsche one of the Fed's 19 primary dealers? That damn PDCF has been on GO since BSC got shorted. To death.

[robertsgt40]

" Deutsche Bank should have warned its customers of the risks"...well duh. If customers had been warned nobody would have bought DB's worthless crap. That's the "beauty" of the scam. Not to mention, they won't be prosecuted. Just like the Fed and Wall street. It's called a team effort.

[john]

Zurich chairman Ackermann quits over CFO suicide (read the main story above)

http://www.reuters.com/article/2013/08/29/us-zurich-cfo-ackermann-idUSBRE97S08V20130829