The fall of Boaz Weinstein, once one of Wall Street's hottest traders, speaks volumes about why financial firms still are reeling from the shattered global markets.
As a chess master, poker and blackjack devotee and top trader at Deutsche Bank AG, Mr. Weinstein made big bets using complex financial instruments, generating large returns for the bank and about $40 million in annual pay for himself. But in 2008 the group he ran saddled the bank with $1.8 billion in losses, erasing more than two years of trading gains.
On Thursday, the German banking giant reported a 2008 loss of $5 billion (€3.9 billion), its first one-year loss in over five decades and a reminder that financial firms are not out of the woods. In an earnings conference call, Chairman Josef Ackermann described the market environment as a "series of earthquakes with constantly changing epicenters."
The losses are the latest reminder of the challenges faced in the new financial order. Wall Street firms long relied for much of their profit on massive risk-taking by aggressive traders deploying the firms' own money; with that game over, firms are struggling to find fresh sources of revenue.
I like it too. (CTB) The market participants are eagerly looking forward to the 'stimulus' package from congress, so I think we may see a big overall spike and then maybe reality will set in, and we revert back to a trading range again.
This isn't a money for nothing deal, the future costs will be massive, and it might not work whatwith all of the extra spending the senate stuffed into the package.
Look at the rotten job numbers today, amazingly bad.
I'm just a trader, I'll make lemonade out of lemons.
Just have to wait and play it as it comes. _______
The U.S. economy lost 598,000 jobs in January, as the jobless rate rose to 7.6%. Total job losses since the recession started in December 2007 to 3.6 million.
Rat dog micro-cap picks... | Stock Discussion ForumsShare