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Opinion
Matt Levine

Deutsche Bank Ignored Its CDS Problems Until They Went Away

Who can resist the lure of selling yourself derivatives on your derivatives?

Today the Securities and Exchange Commission fined Deutsche Bank $55 million for accounting misstatements relating to some crisis-era credit derivatives, and reading the SEC order makes me feel like a peasant in the Dark Ages discovering a classical Greek statue in a pile of rubble. They had Art, back then, in 2005 or whatever. Their credit derivatives had a beauty, a symmetry, a purity of line and a depth of feeling that we're unlikely to see again in our lifetimes.

Here's the trade :