Deutsche Bank Dodges $4 Billion Archegos Hit

Deutsche Bank Dodges $4 Billion Archegos Hit

Assessment

Interactive Video

Business

University

Hard

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The video discusses significant market losses at Credit Suisse and Nomura, emphasizing the importance of speed in trading. It highlights Deutsche Bank's strategic sale of $4 billion in block trades and questions why other banks couldn't act as swiftly. The discussion also covers the quality and liquidity of stocks, which can impact trading outcomes. The SEC is investigating potential irregularities, including a reported phone call among banks and the role of Bill Huang. The video provides insights into market dynamics and regulatory responses.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the main reason for the significant losses at Credit Suisse and Nomura?

They sold their stocks too quickly.

They held onto their stocks for too long.

They had insider information.

They invested in high-risk bonds.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why was Deutsche Bank's timing considered good in the context of the market events?

They acquired new clients from Goldman Sachs.

They avoided any involvement in the block trades.

They finalized a sale of their prime brokerage service.

They were able to sell their stocks before the market crashed.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What factor can make it difficult to sell stocks in a declining market?

High stock prices

Strong market demand

Low stock liquidity

High trading volume

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the SEC investigating in relation to the recent market events?

The legality of the block trades

The stock prices of Goldman Sachs

A reported phone call among banks

The financial health of Deutsche Bank

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Who is being scrutinized by the SEC following the market events?

Bill Huang

Danny

Annemarie

Stephen Arrows