DZ BANK AG – $2.1B
March 7, 2008 – 9:52 pm2008-03-07:
The rating agencies are getting around to doing their job of diagnosing the patient before it is dead, but seem reluctant to say anything is wrong.
Moody’s Investors Service said it has changed its outlook on the ‘C-’ bank financial strength rating (BFSR) of DZ Bank AG Deutsche Zentral-Genossenschaftsbank and DZ Bank Ireland PLC to stable from positive reflecting the bank’s 2007 results and the material exposure of 26 bln eur to asset-backed securities.
Is that a downgrade? Well yea I think so and don’t look now, but there’s that €26 billion number again.
2008-02-28:
With the infection of Germany’s DZ Bank the subprime pandemic now infects the very heart of the German co-operative banking sector. DZ BANK AG Deutsche Zentral-Genossenschaftsbank is the central bank for more than 1,200 cooperative banks in Germany, which play a central role in retail banking.
Germany’s DZ Bank said Thursday that it has been forced to write down nearly €1.4 billion (US$2.1 billion) in asset-backed securities and bonds because of their exposure to subprime risks.
The bank remains exposed to €26 billion ($39.5B) worth of debt related investments of which debt €3 billion ($4.6B) are in subprime mortgages, and estimates that write downs of more than $2.0 billion due to rating agency downgrades on investments are possible.
