The $400m of cumulative losses that Citigroup, Deutsche Bank and Barclays are said to have suffered from the Swiss central bank’s decision to end the cap on the franc may be followed by others in coming days.
'The losses will be in the billions - they are still being tallied', said Mark T. Williams, an executive-in-residence at Boston University specializing in risk management. 'They will range from large banks, brokers, hedge funds, mutual funds to currency speculators. There will be ripple effects throughout the financial system'.
Deutsche Bank lost $150m and Barclays less than $100m, people familiar with the events said, after the Swiss National Bank scrapped a three-year-old policy of capping its currency against the euro and the franc soared as much as 41% that day versus the euro. Spokesmen for the three banks declined to comment.
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