Bankers Trust (BT) was established early last century as a trust corporation and later became a pioneer in derivatives trading and product development before lawsuits by major clients rocked the company in the 1990s. BT was acquired by Deutsche Bank in 1999 shortly after the group suffered major trading losses in the wake of Russia's debt default.
Bankers Trust was established in 1903 in New York City by U.S. banker Henry Davison as a trust company for a consortium of banks and later branched out from traditional bank lending into trading and risk management. BT suffered irreperable harm in 1994 when it was successfully sued by two of its clients over complex derivatives trading it undertook for them that resulted in heavy losses. In November 1998 German powerhouse Deutsche Bank agreed to purchase the discredited BT for $9.8 billion and completed the deal in June 1999.