Most of the leading banks failed predicting the Soccer World Cup 2014 results and Deutsche Bank AG (USA)(NYSE:DB) is one of them. Its predictions didn’t work at all. The bank predicted that Brazil would emerge as winner which didn’t happen.


Daniel Schäfer of Financial Times was on CNBC last night and he discussed about the predictions made by various banks in detail including Deutsche Bank AG (USA)(NYSE:DB). According to him, Macquarie Group Ltd (ADR) (OTCMKTS:MQBKY), Australian bank was among the few that got the predictions correct to an extent while most of the banks failed. Macquarie predicted Germany to be the favorite which came true and it was due to the model they used which just doesn’t take the performance of the teams into account but also how each and every player performs, so it worked well.

They also discussed how Goldman Sachs Group Inc (NYSE:GS)’s clause helped it in the prediction of Brazil winning the world cup. They put in a clause that if any key player gets injured, it would not have any bearing on the predictions which nullifies the prediction of Goldman Sachs Group Inc (NYSE:GS) and they can say that Neymar Jr’s exit was the reason for Brazil to get out of the race to the final.

Schäfer mentioned how the German bank Deutsche Bank AG (USA)(NYSE:DB) failed spectacularly unlike the German soccer team by predicting England as the champions. Goldman Sachs Group Inc (NYSE:GS) which prepared a report after analyzing the statistics of thousands of matches failed even after doing that.

“While Germany might be very good at playing football, actually the German bank, Deutsche Bank is not very good at predicting football either because they got it spectacularly wrong by predicting England as the favorite team.” Schäfer stated.

The key investors in Deutsche Bank AG (USA)(NYSE:DB) are Masters Capital Management with 1.5 million shares as of 31st March 2014. Other key investors are Taconic Capital with over 850,000 shares and Firefly Value Partners with about 555,000 shares in the company.

Disclosure: None