Deutsche Bank AG sold about $4 billion of holdings in a private deal on Friday to escape the Archegos Capital Management scuffle, according to Bloomberg. The German bank executed the direct sale after Archegos defaulted on margin loans used to build up highly leveraged bets on stocks.
The $4 billion sale brings to almost $30 billion, the known value of investments that have been liquidated in the messy unwinding of Archegos.
It is the second time in less than a year that Deutsche Bank avoided damage from a big corporate collapse it had exposure to.
Goldman Sachs Group Inc., Morgan Stanley, and Wells Fargo Co. dumped multibillion-dollar blocks of stock to recover capital they loaned to Archegos.
Swiss rival Credit Suisse expects a hit in the billions of dollars from Archegos while Nomura Holdings Inc. signaled it may lose as much as $2 billion.
Analysts at JP Morgan Chase & Co. estimate the Archegos crisis may cause as much as $10 billion of combined losses for banks.
Deutsche Bank stock is currently gaining. DBK is up 1.08%
