Deutsche Bank Emerges Unscathed From Archegos Fallout With $4 Billion Private Deal

Deutsche Bank AG sold some $4 billion holdings connected to the Archegos Capital Management fallout in a private deal on Friday, Bloomberg reported.

• One of the buyers was one of Europe’s largest hedge fund manager Marshall Wace. The identities of others were not immediately available.
• Deutsche previously said it was able to de-risk its Archegos exposure and doesn’t expect to incur losses on the trades. Representatives for both Deutsche and Marshall Wace declined to comment.
• The sale brings to almost $30 billion the liquidation of assets connected to Archegos, after Goldman Sachs Group Inc., Morgan Stanley, and Wells Fargo & Co. dumped billions of stocks through the weekend to recover capital from loans to Archegos.
• Deutsche Bank earlier avoided damage from the Wirecard AG accounting scandal, which inflicted millions of euros in credit losses on lenders that did not hedge their exposure.
• Swiss rival Credit Suisse said the impact of the Archegos could hit in the billions of dollars. Nomura Holdings Inc. expects as much as $2 billion losses, while JPMorgan Chase & Co. analysts estimate as much as $10 billion losses for banks.