Posted on 09/29/2016 9:28:44 AM PDT by TigerLikesRooster
Deutsche Bank can only be saved by the German government, strategist says
Matt Clinch | @mattclinch81
Only a substantial intervention by the German government can stop the collapse of the country's largest lender, Deutsche Bank, according to Stefan Müller, the CEO of Frankfurt-based boutique research company DGAW.
"Deutsche Bank doesn't realize that something serious needs to happen," he told CNBC via telephone on Thursday morning. "(CEO John) Cryan clearly showed that he has no idea how to survive."
The embattled German lender saw a respite on Wednesday from hefty selling seen in previous sessions amid contradictory reports on whether the German government had a rescue plan for the bank. Cryan also tried to reassure investors about the bank's capital strength by telling the tabloid newspaper Bild that "state aid is not an issue."
Müller added that any type of financial aid or bailout would be difficult for Merkel ahead of elections next year as well as creating "moral hazard" for other lenders - where there is a lack of incentive to guard against potential risks due to the government backstop.
(Excerpt) Read more at cnbc.com ...
Weimar Republic followed by the rise of Hitler. Complicating the problem this time is a muslim invasion.
DB has fallen to 10.22.
And a big client run, has begun:
The Run Begins: Deutsche Bank Hedge Fund Clients Withdraw Excess Cash | Zero Hedge
The Run Begins: Deutsche Bank Hedge Fund Clients Withdraw Excess Cash
by Tyler Durden
Sep 29, 2016 12:34 PM
Deutsche Bank concerns just went to ‘11’ as Bloomberg reports a number of funds that clear derivatives trades with Deutsche Bank AG have withdrawn some excess cash and positions held at the lender, a sign of counterparties’ mounting concerns about doing business with Europe’s largest investment bank.
While the vast majority of Deutsche Bank’s more than 200 derivatives-clearing clients have made no changes, some funds that use the bank’s prime brokerage service have moved part of their listed derivatives holdings to other firms this week, according to an internal bank document seen by Bloomberg News.
Millennium Partners, Capula Investment Management and Rokos Capital Management are among about 10 hedge funds that have cut their exposure, said a person familiar with the situation who declined to be identified talking about confidential client matters.
Is Merkle going to invade the Sudetenland? Where else will Deutschland get the resources and capital?
France has nukes, so the only other option is Belgium.
5.56mm
Oh, one more thing. Poland is ready this time.
5.56mm
“Deutsche Bank Poses The Greatest Risk to The Global Financial System”: IMF
http://www.zerohedge.com/news/2016-06-29/imf-deutsche-bank-poses-greatest-risk-global-financial-system
The IMF concluded that Germany needs to urgently examine whether its bank resolution, i.e., liquidation, plans are operable, including a timely valuation of assets to be transferred, continued access to financial market infrastructures, and whether authorities can ensure control over a bank if resolution actions take a few days, if needed, by imposing a moratorium:
Oh well, this was June 30, 2016......
“if resolution actions take a few days”
Yeah, the failure of the largest bank in the 4th largest economy in the world...that’s always a walk in the park.
Merkel must be doing some Hillary-strength drugs. Commerzbank (also in the news these days...http://www.bbc.com/news/business-37505900), Germany’s second largest bank, is only 1/3 the size of DB.
Here we go as per Drudge:
http://www.cnbc.com/2016/09/29/pressure-seen-building-for-germany-to-rescue-deutsche-bank.html
The rub:
“The German government is in a difficult dilemma over whether to save the bank whose assets are valued at about €1.8 trillion, half the size of the country’s economy.
Berlin backed itself into a corner by not allowing Italy to break eurozone rules and bail out its troubled banks.”
https://www.rt.com/business/361045-germany-aid-ailing-banks/
Germans are very reluctant to “print.” The cultural memory of Weimar hyperinflation is still very strong there.
This is a bank with $16 Billion in equity, $160 Billion in debts. Supposedly, their derivatives exposure is greater than the value of German assets, both private and public.
Who allows a bank to have 10 times its assets in debt? And such large derivative exposure. I admit sometimes when reading this stuff, my tinfoil hat goes on and I wonder if there isn’t a group of people plotting to collapse the world economy and everything else.
If this is “it”, we will know before October 31st.
Yep.
I have a confession to make:
I bought my small farm in south central KY two weeks before the 2008 election only partly as a “bug out” location. The funny thing is that I thought McCain would surely win. :-)
But I moved here in 2011 for the same reason, only more so. There is a lot of stuff we want to do to this property in a “normal” world, but I made the decision almost three years ago that I would not do it unless the world stayed “normal” into 2017. And I believed the highest risk of the bad stuff happening would be in the last months of 2016.
It means that I’ve put everything on hold, in a way, to see what 2016 brings. This is no “bible prophesy” thing or anything like that. Rather, since I don’t have TV, I see events differently than most people. I don’t get “conditioned”. I’ve seen the ramp up more clearly. The things that are “acceptable” today (BLM protests, etc.) that would have been thought unthinkable just a few years ago are everywhere.
So, yeah. We’re getting there. We’ll know soon enough.
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