Deutsche Bank loses €94 million on CVA mismatch

Hedges worked as capital mitigant, but generated an accounting loss, bank says


Deutsche Bank lost €94 million in the first half of 2013 on credit default swap (CDS) positions that were being used to reduce Basel III capital requirements – the result of a disparity in the way regulators and accountants view the hedges, according to a spokesman for the bank. Traders at other institutions see the loss as proof the new capital rules – implemented in Europe via the fourth Capital Requirements Directive (CRD IV) – are encouraging banks to take more risk.

The disclosure appears

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here