London: Deutsche Bank AG, struggling with US competitors, legal and technology costs and clients pulling back, had a further problem in the second quarter: its own traders. The slump was impacted by a wrong-way bet traders made on US inflation that could cost Deutsche Bank as much as $60 million, according to a person familiar with the matter. Jacob Bourne, who described himself on LinkedIn as Deutsche Bank’s “head of US inflation,” has since left the lender. “Rates revenues were lower driven by a difficult quarter for market making in our US rates business,” Deutsche Bank said in a presentation, referring to the unit that houses the inflation-trading desk. Revenue at Deutsche Bank’s fixed-income business fell by €158 million from the same period a year earlier.

Source: Mint July 27, 2017 17:03 UTC