Deutsche Bank released earnings that showed a loss for the first time in five years as they wrote down $4.2 billion in equity as a result of the global credit crisis. While Deutsche Bank has got off well because of reduced exposure to sub-prime, I fully expect more writedowns as the credit crisis continues. Deutsche Bank has a very large exposure to Commercial Real Estate (CRE) in the US. The CRE sector is poised to be one of the next to be hit hard as the next round of bloodletting begins.
Deutsche would be well-advised to boost their equity capital sooner rather than later.
See also: Credit Crisis Timeline for a full list of writedowns by institution and a timeline of the credit crunch.