When Deutsche Bank announced that they are "internally investigating" $6B of suspected money laundering by their clients it just looked like another run of the mill money laundering case. A big one but one that can be nestled away in the attic with paying a few fines and taking a couple write downs. But what they describe is NOT a money laundering scheme but rather a problem with their derivatives book!
Deutsche Bank Probes $6B Suspected Money Laundering
http://www.reuters.com/
"Deutsche Bank was investigating whether its employees in Moscow may have helped launder at least a triple-digit million-euro amount of money through the purchase and sale of over-the-counter derivatives in Moscow and London."
Hmm...$6B in bad derivative trades and 3 employees already fired at the largest derivative holding entity in the world. Also, Deutsche Bank was the largest bank to fail the latest stress test in the US. Hmm...
This will surely only get worse as the Greek credit default swap holders line up for payment.
It's getting hot out there!
May the Road you choose be the Right Road.
Bix Weir
www.RoadtoRoota.com
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