- Heinz Schimmelbusch
Heinz Schimmelbusch (born
1944 - ) was the Chief Executive ofMetallgesellschaft AG, a German industrial conglomerate, that almost went bankrupt after losing an estimated $1.3 billion on speculative bets in oil futures markets. [ [http://www.iht.com/articles/2007/08/10/business/wbspot11.php Spotlight: Heinz Schimmelbusch's comeback - International Herald Tribune ] ]Background and Education
Schimmelbusch was born in
Vienna . [ [http://www.iht.com/articles/2007/08/10/business/wbspot11.php Spotlight: Heinz Schimmelbusch's comeback - International Herald Tribune ] ] He received a doctorate in Economics from the University of Tübingen, Germany. [ [http://www.safeguardintl.com/schimmelbusch.html Safeguard International ] ]Metallgesellschaft
Under the leadership of CEO Schimmelbusch, Metallgesellschaft entered the oil business by selling fuel to customers (such as gasoline stations) via its American subsidiary, MG Refining and Marketing in the form of fixed price long term contracts (up to 10 years). [ [http://www.fundinguniverse.com/company-histories/Metallgesellschaft-AG-Company-History.html Metallgesellschaft AG - Company History ] ] Metallgesellschaft attempted to hedge its exposure to rising oil prices on the futures market. [ [http://www.iht.com/articles/2007/08/10/business/wbspot11.php Spotlight: Heinz Schimmelbusch's comeback - International Herald Tribune ] ] Unfortunately, in 1993, oil prices began to drop and Metallgesellschaft's derivatives strategy turned into extensive paper losses. [ [http://www.fundinguniverse.com/company-histories/Metallgesellschaft-AG-Company-History.html Metallgesellschaft AG - Company History ] ] The company's largest shareholder,
Deutsche Bank found out and responded by ousting Schimmelbusch and liquidating Metallgesellschaft's positions which turned the virtual losses into real losses. [ [http://www.fundinguniverse.com/company-histories/Metallgesellschaft-AG-Company-History.html Metallgesellschaft AG - Company History ] ]ee also
*
List of trading losses References
DEFAULTSORT:Schimmelbusch
Wikimedia Foundation. 2010.
