August 10, 2007 (LPAC)--As reported by the German edition of Financial Times, and other media as well, the ABS funds of Sal. Oppenheim and Deutsche Bank have probably suffered the most from the panic-driven capital outflow since late July. Oppenheim lost 500 million euros during the first days of August, and Deutsche Bank's DWS, with a volume of 3.15 billion euros, one of the biggest of that kind in Germany, lost 770 million. 530 million of that was lost since the beginning of August. And that is not factoring in the expected losses caused by Bear Stearns blowback. Deutsche Bank was hit yet again by the HomeBanc default in the U.S. yesterday.

Meanwhile, numerous other German ABS funds are rumored to be in trouble. West LB, which until yesterday still claimed to lack any problems, felt compelled to admit that its U.S.-based asset management arm, Bridgewater Capital Management, has had "some problems, but it is not dangerous." Bridgewater is not facing any sort of liquidity crisis, WestLB said. The bank also admitted that it was exposed to "structured credit instruments," but again reiterated "there is no liquidity crisis." Protesting a bit too much, the bank insisted that its situation could not "in any way" be compared to IKB bank, whose bailout was just arranged by the state-run KfW.

The financial market watchdog BAFIN announced it is looking into the situation of at least one sub-prime fund of the Saxonian State Bank, called Ormond Quay, which alone has a volume of 17.5 billion dollars. Another fund of the same state bank, Georges Quay Funding Ltd, is exposed with about 11 billion dollars.