January 12, 2009

Anshu Jain, who helped generate about half of Deutsche Bank AG’s earnings in 2007 as co-head of investment banking, is winding down buying and selling debt for the bank’s own account after at least $1.5 billion of losses. As Jain retreats from what was the most-profitable part of Wall Street during the past six years, the securities industry is preparing to report its worst quarterly trading results.

Germany’s largest bank lost about $1 billion from bad bets involving bonds hedged by credit-default swaps, plus $500 million trading equities, two people with knowledge of the matter said. The Frankfurt-based company may post a fourth-quarter loss, partly as a result of the trades at Jain’s unit, analysts estimate.