Deutsche Bank Reports $11B in Write-Downs

Today Deutsche Bank AG announced fresh write-downs, taking its bill from the global financial crisis beyond $11 billion.

Published on July 31, 2008

Germany's leading financier had originally been seen as one of the few to emerge unscathed from the crisis, but as the problems on global markets continue Deutsche Bank is being sucked ever deeper into trouble.

The group's pretax profit collapsed in the second quarter to 642 million euros ($1 billion) -- a fraction of the 2.7 billion euros it made a year earlier -- as write-downs ate into its bottom line.

Deutsche listed its latest injuries from the global crisis, saying it made 1 billion euros of writedowns in residential mortgage-backed securities and a further 500 million euros linked to monoline insurers which insure against bond defaults.

Commercial real estate investments cost it 300 million.