Bulge Bracket Banks Are Feeling Deutsche Bank Envy Right About NOW

oswald gruebel
Oswald Gruebel

There are 2 reasons why bulge bracket banks are probably feeling a load of Deutsche Bank envy right about now.The first is because Deutsche Bank had one of the biggest shorts against the subprime market – $5 billion – and its employees sent out emails that are just as hilariously egregious as Goldman Sachs’, but (maybe because they’re a Germany-based bank) they get no heat for it – fraud charges or otherwise. There even seem to be fewer lawsuits against them in the news.

The second is that Deutsche Bank has the ability to shift its operations overseas easily. It’s doing so more now in order to work around new financial regulations.

Jamie Dimon explained the envy U.S.-based banks are feeling best during the firm’s earnings conference call.

A Deutsche Banker asked Dimon a question and Dimon said, “Before we do that, we’re going to — we’re thinking about hiring Deutsche Bank to help us in our capital structure here in the United States.”

Also on that conference call, Dimon spoke about what would happen if the debt ceiling isn’t raised. Click here to read more >