CommerzBank Loaned Detroit Over $400 Million, Faces Steep Losses

Germany’s second largest lender, Commerzbank AG (OTCMKTS:CRZBY), loaned over $400 million to Detroit, according to a German daily, Frankfurter Allgemeine Zeitung. The exposure came through Commerzbank AG (OTCMKTS:CRZBY)’s subsidiary, Eurohypo, which the bank bought in 2005. Eurohypo lent over $400 million to the recently declared-insolvent city. Detroit a small issue for CommerzBank Jaime Becerril of J.P. Morgan Cazenove feels the Detroit exposure could be a small issue for the Germany bank. As of the first quarter of 2013, the bank had €74.2 billion exposure in its ‘public finance’ portfolio, split across fixed income securities (€23.3 billion), sovereign debt (€36.2 billion)…