John Paulson and Deutsche Bank penned a 1 billion dollar deal recently, according to Der Spiegel.
The article is hard to understand. The May 6th article in Der Spiegel says Deutsche Bankers say Paulson “wanted to share with more than a billion dollars at the same time rising gold and oil prices.”
We spoke to a native who works there and he says that it means what it sounds like: John Paulson gave Deutsche Bank $1 billion to manage and to put into gold and oil.
That’s no surprise. Paulson said on May 4th last week that he was still bullish on gold.
But the question is… did Paulson’s oil buy get crushed on Thursday after the commodities dump?
The funny thing is, Deutsche Bankers told Der Spiegel that the deal is “less about profit than prestige,” and now not only has the prestige taken a knock (getting written about in the press isn’t Paulson’s favourite thing) but its profits are (at least temporarily) trashed.