Goldman SEC scam: other banks now incriminated.


Deutsche Bank profits are up 50% – but it too faces
questions about CDO dealings

Goldman Sachs was not the only investment bank selling the complex securities that ultimately resulted in staggering losses for the German bank IKB Deutsche Industriebank.

Inside sources have revealed that traders at Deutsche Bank sold similar collateralised debt obligations (CDOs) — built from credit protection on a portfolio of mortgage-backed securities selected in consultation with hedge fund manager John Paulson — to IKB. Deutsche Bank didn’t reveal Paulson’s role in the construction of the CDOs.

The Slog can also reveal that although DB senior staffers have been busy over the last 24 hours denying they used pernicious ‘3rd party’ managers in the Goldman Sachs manner, a German-based source affirms that it was IKB not to buy CDOs without a 3rd party manager. Ironically, such is the lack of honour amongst banking thieves, IKB saw the use of such an intermediary as protecting its interests.

The news confirms what Slog sources revealed last week: that the Goldman defence – of ‘not knowing what’ one ‘rogue’ trader was doing – is risible.

London sources also revealed yesterday that the FSA is indeed on the Goldman Sachs case over here…but that other foreign banks based in London are also being targeted.

Meanwhile, the wages of sin appear to be….bigger profits. DB announced first thing this morning that Q1 profit rose 48 percent, beating analysts’ estimates.