Interesting thought

Sajid Javid is now the Health Secretary. As this press release shows, his prior experience was in trading the financial instruments that crashed the world economy in 2008.

And he was not a minor player. He was a major player at a major bank, worthy of having press releases issued about his career progression. In 2008 he helped bring down the world economy: no one else but bankers did that. Deutsche in London was right in the middle of that.

Javid was also running the Far East business out of Singapore.

How badly was Singapore hit? How badly was Deutsche Singapore hit?

Given that Singapore actually managed a rise in GDP that year – marginal but still there – perhaps not very much. Which might be useful evidence as to whether Javid is good in a crisis or not, eh?

5 thoughts on “Interesting thought”

  1. “In 2008 he helped bring down the world economy: no one else but bankers did that. “. No. Not commercial bankers, you twat. They were symptoms not causes. It was central banks and government policies that ‘crashed the banking system’.

  2. Well, pretty badly;

    https://www.mas.gov.sg/annual_reports/annual20082009/13_sin.html

    “In view of the weak external environment, the Singapore economy registered growth of 1.1% in 2008, a significant fall from the 7.8% recorded the year before.” Ouch.

    The Singaporean economy contracted in 2009 (~1.3%), then bounced back in 2010. After Javid left DB.

    The credit prop. trading unit appears to lost DB about 6Bln EUR in H2 2008. They closed the business fairly swiftly. That leaves him with converts, commodities and PE, based in Singapore. Not Shanghai or Tokyo.

    Commodities was most likely SIMEX based stuff. MAS seem to imply that the GFC hit trading across the region in 2009. So that probably collapsed.

    Converts? Dunno. SE Asian companies seemed to be quite keen on the paper as a source of funding, compared to elsewhere, from memory, but I can’t see that it would be a particularly deep market. Convert Arb as a strategy had seen returns get competed away in the previous eight years. I can’t see that he would have had anything to do with primary issuance.

    PE? Again, dunno. MAS’ reports suggest biomed was a particularly large sector within Singapore, but that got hit as well during ’08/09. In the rest of the region, I suspect that DB would be somewhat junior to the Yankee/Jap big boys, like DFJ or Softbank, depending on the sector.

    Is he any good in a crisis? Can’t tell. Credit was probably just shut down, taking the hit. For the others, may be he was good at telling others to trade out of risk, close the exposures, but given the spread of responsibilities, I very much doubt he was directly executing anything.

  3. What caused the 2008 financial crisis was Clinton’s decision to ban US banks from discriminating against poor credit risks.
    The banks were victims of chancers and outright fraudsters.

  4. What is obvious is the sheer unadulterated jealousy and hatred.

    Javid got to do what P³ always wanted to do: direct policy on large gobs of money, taking his percentage along the way.

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