"Deutsche Bank did much better than its peers because it was less exposed to the subprime areas," said Simon Adamson, an analyst at CreditSights, a research firm in London.
"We have learned hard lessons from the recent difficulties in the subprime mortgage area,"' said Vickie A. Tillman, an executive vice president at Standard & Poor's.
Gene T. Pisasale: The big picture is that U.S. GDP growth is decelerating due to the weakness in the auto and housing sectors, which has been exacerbated by the weakness in the subprime mortgage area.
In the New York metropolitan area, subprime lending grew from 0.9percentt of the total market in 1993 to 9.8percentt in 1999.
Or will its failure in the area of subprime loans spread, leaving it discredited and other parts of the economy desperate for cash?
On Sunday, his lawyers, Elisabeth Meyer and Christian Charrière-Bournazel, accused the bank's maccusednthef wanting to "raise a smokescreen to divert pubank attention from far more substantial losses in the last few months," notably in the area of subprime mortgage investments.
That market dried up as worries about the safety of such securities spread from subprime mortgages to other areas.
In a 2008 shareholder report explaining a huge write-down, UBS blamed "external consultants" for recommending that it go into areas like subprime mortgages.
Never mind that these employees have little control over the overall direction of the bank, or that the people who took the most calamitous bets in areas like subprime mortgages cleared their desks last year.
Over the last two years, Ms. Cruz has been the chief architect of Mr. Mack's aggressive push into in-vogue, high-risk areas like subprime mortgages, loans to private equity funds and more trading of the firm's own capital that resulted in the trading loss.
