Deutsche Bank lost $ 1.6 billion following a transaction involving Buffett, according to the WSJ

According to the Wall Street Journal, the German bank Deutsche Bank lost $ 1.6 billion on a single bond loan involving Warren Buffett's Berkshire Hathaway insurance.

The bank bought a $ 7.8 billion municipal bond portfolio in 2007, according to the report. Deutsche Bank bought the default protection on Berkshire bonds the following year, paying 140 million dollars into the transaction.

In the decade since its purchase, Deutsche Bank executives have postponed accounting for trade losses, sparking an internal debate between senior executives and the bank's auditor, the newspaper reported. The transaction became an albatross for the company, which eventually chose to sell the bonds at a loss and terminate its Berkshire insurance, recognizing the loss of $ 1.6 billion recorded in 2016.

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