The firm’s German derivatives researchers used a daily market note to weigh on a recent year-end directive in which BaFin asked auditors and banks to take a closer look at their exposure to shipping loans while finalising their 2012 earnings reports.
“BaFin’s decision to direct the auditing industry to check shipping portfolios at banks in depth is likely to spark a wave of additional write-downs on such portfolios running into billions of Euros,” they said.
