Deutsche Bank AG Wednesday said it will take charges of up to 2.2 billion euros ($3.09 billion) for the third quarter on leveraged loans, structured credit products and mortgage-backed securities, although it will still achieve a sizeable net profit due to one-time gains.
The German banking giant said the charge on leveraged loans and loan commitments will be up to €700 million, in addition to charges taken on such loans and commitments during the second quarter. It will also take approximately €1.5 billion in charges on structured credit products, residential mortgage-backed securities and valuation losses on both debt and equities.
The story goes on to note that DB will have a profit because of other activities. I am now very curious about what those activities are.
In addition -- this is the third large investment bank that has taken a big hit to third quarter earnings because of the credit market situation. The market rallied on the last announcement. Maybe this is food for a further upward move in the markets.
