Deutsche Bank AG, Germany's largest banking company, has lost about $1 billion from bad bets involving bonds hedged by credit default swaps, plus $500 million from trading equities, two people with knowledge of the matter said.
The Frankfurt company may post a fourth-quarter loss, partly as a result of the trades at its Jain's unit, according to analysts.
Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co., and Credit Suisse Group have reported trading losses since Lehman Brothers' bankruptcy filing in September. All those companies, except Goldman, have announced plans to shut down some proprietary trading operations. "The financial crisis has caught up with Deutsche Bank," said Lutz Roehmeyer, who helps manage about $17 billion of assets, at Landesbank Berlin Investment.