/biz/ - Business & Finance

>>25854632
>implying i live on your shitty continent

Friends of /biz/. It has gone so far that as financial advisor for a lot of wealthy clients in the BENELUX I would like to ask you guys for your godlike expertise.

We've been receiving a lot of negative news in the last year regarding Deutsche Bank:

> Stock price has halved in value

> 2015 result was -6,8 billion euros

> Investment banking department is still way oversized

> Insane exposure to derivatives (some estimates go up to 600 billion euros)

> Only 2,7% tangible equity on tangible assets

> Heavy restructuring is taking place, firing at least 35k people and leaving 10 countries.

> Dividend has been cut for at least 2 years

Now about the actual question:

A client of mine doesn't have a lot of liquidity or direct stocks at Deutsche (where he is a client) but is in discretionary management at the bank. I'm wondering how synthetic DB ETF/trackers in that portfolio would be affected if the bank goes down. As it's a synthetic product the underlying isn't directly the associated basket of stocks/bonds but swaps with (an)other party/parties (who then invests in a basket or other non-related products). In the case of DB ETF/trackers this would be Deutsche Bank.

Let's say Deutsche Bank gets in serious trouble, would this mean they can opt out of these obligations? Other than that, are there any other risks for people in discretionary management at Deutsche Bank?

Any help is very much appreciated.