Deutsche Bank

Blackstone has agreed to buy the Cosmopolitan of Las Vegas, Deutsche Bank’s $4 billion dollar mistake. The private equity firm will pay $1.73 billion to acquire an establishment that Deutsche top executives have refused to be associated with; people go to not gamble; and in five years has never turned a profit. For those who think the deal represents a loss for DB, remember that they were just about ready to give the place away for free. Read more »

Deutsche Bank, as you all know, owns a Las Vegas resort and casino called the Cosmopolitan. The bank never set out to be the proprietors of such an establishment, but after a developer who they loaned money to defaulted, they didn’t have much choice, did they? So now, here we are, 6 years and $4 billion later. Senior execs at the bank won’t be seen there. Guests aren’t particularly interested in gambling at the place. And, by the way, it’s never turned a profit. So it wasn’t entirely surprising to hear the Germans had decided to try and find someone to take the investment off their hands and that was before this happened: Read more »

  • 16 Apr 2014 at 9:58 AM

Who Wants To Buy A Las Vegas Resort?

As some of you may recall, Deutsche Bank owns a casino1 (and hotel) in Las Vegas called The Cosmopolitan. If it seems out of character2 for the Germans to be proprietors of an establishment whose motto is “Just the right amount of wrong,” where people lay scantily clad around a pool by day and gorge themselves on food and drink before vomiting while waiting in line to get into a club by night, that’s because Deutsche only meant to get into the business of funding the project, not running it. Unfortunately, in 2008 the original developer, Ian Bruce Eichner, had to go and default on his loans, and when it became apparent that no one else wanted to invest in the place, the bank decided to just finish the thing itself, spending an addition $3 billion that went towards things like “a three-story crystal-strewn bar meant to evoke the inside of a chandelier.” Anyway, the resort has been been making slightly more money than in earlier years (while still “post[ing] net losses of around $100 million every year since opening”) and management has decided that as much fun as its been owning an in-house nightclub called “Rose. Rabbit. Lie.”, it’s time to sell. Read more »

Deutsche Bank AG was ordered to give four traders fired in a rate-rigging investigation their exact jobs back while a court is hearing an appeals bid by the lender over the issue. The lender must pay a penalty equal to the men’s monthly salary unless it reinstates them in their original positions, Frankfurt Labor Appeals Court spokesman Wolfram Henkel said in an interview today…The Frankfurt Labor Court ruled last year the terminations were illegal and the bank must reinstate the employees, who made submissions for Euribor and Swiss Franc Libor. The court found “indications” that the fired staff wrongfully took derivatives trading positions into account when deciding what rates to submit. While it’s against bank rules to fix rates, the lender couldn’t use this as a reason to fire them because it didn’t have sufficient guidelines on rate submissions, didn’t control the process, and had systems in place that fostered the behavior, the court wrote in the judgment. [Bloomberg]

A couple of notoriously lax securities regulators would like to see the adjective “notoriously lax” excised from before their names.

First, to Toronto, where the Ontario Securities Commission is looking longingly at Preet Bharara’s ability to command the entire FBI to stop what it’s doing to surreptitiously tape some mid-level hedge fund analyst’s phone calls. Read more »

When prosecutors make a bee-line for your place after an uninvited visit to your lawyers, that’s probably not a good thing. Read more »

  • 20 Mar 2014 at 4:08 PM

Layoffs Watch ’14: Deutsche Bank

Zee Germans are mulling over cutting their own, at all levels. Read more »