EFTA00818455.pdf

From: Richard Kahn To: Jeffrey Epstein <jeevacation@gmail.com> Subject: Fwd: European bank preferreds Date: Fri, 16 Sep 2016 12:51:31 +0000 Attachments: DBK.pdf Inline-Images: image001.png Sent from my iPhone Begin forwarded message: From: "Ens, Amanda" Date: September 16, 2016 at 8:48:49 AM EDT < To: " Subject: European bank preferreds Rich, wanted to follow up on our preferreds conversation. Lots of focus on European banks today. DB's AT1/CoCos opened down 7 points, bounced and are easing off again, around -4.5 points (giving back almost all of that rally we've had the last 10 days). Here are some thoughts from our banks analyst in London: • DBK is the first European to go through this case with the Dol. • Other banks remaining are RBS, CS, UBS, BARC and to a much lesser degree HSBC. • CS has very low provisions against this case. • RBS it is better understood as a risk, but is not good news either way. • UBS is better provisioned, but is a dividend story for the market (we disagree) — larger hit here delays that (again) • BARC is smaller in quantity as it bought LEH assets, not the legal entity • HSBC didn't sell the bad stuff and kept it on its books instead, leading to big loan losses in Household, so can't be done for mis-selling as much...plus its massive. • Other large cases for DBK are: OFAC (US sanction), FX manipulation, Russian equities/money laundering case. • DBK has a 5.5bn reserve built for ALL cases (not just RMBS) Please find our research report from today attached. Regards, Amanda Amanda Ens Director Bank of America Merrill Lynch ted The power of global connections" EFTA00818455 This message, and any attachments, is for the intended recipient(s) only, may contain information that is privileged, confidential and/or proprietary and subject to important terms and conditions available at http://www.bankofamerica.com/emaildisclaimer. If you are not the intended recipient, please delete this message. EFTA00818456