Not the type of call you want to receive.
Deutsche Bank said it wasn’t to blame for 2008 losses on currency trades by Alexander Vik’s Sebastian Holdings that the Norwegian entrepreneur described in a phone call as his 'worst nightmare'.
Bloomberg reports that e-mails and phone calls cited by the bank in trial documents show how market turmoil in October 2008 led to escalating losses at Sebastian, soured its relationship with Deutsche Bank and tested the lender’s prime brokerage systems to the breaking point.
Vik’s investment fund is suing the bank for as much as $8bn over margin calls made at the height of the financial crisis, the bank said Monday in documents released at the start of a London trial. Deutsche Bank says it acted properly and Sebastian owes it $250m.
Vik, 58, told Sebastian trader and former Credit Suisse banker Klaus Said he was 'at the puke stage' as markets moved against the fund that month, according to an e-mail cited by Deutsche Bank in court documents.
Deutsche Bank's $500m in margin calls on Said’s currency derivative trades were 'like the worst nightmare I’ve ever heard of', Vik said in a call to account managers at the bank.
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