Skip to comments.Deutsche Bank can only be saved by the German government, strategist says
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 ...
Yes, of course. All major dealer-broker, Federal Reserve banks are too big to fail. We know that already.
Our monetary system is a fascist/socialist, highly political, centrally planned operation, used as an organ of state power.
Whistling Past Your Graveyard
Deutsche Bank is on the verge of collapse. Let me remind you that back at the time of the financial crisis in 2007/08 I wrote specifically about them, calling the firm repeatedly DoucheBank as they had an utterly ridiculous derivative exposure compared against their capital. In fact they made US bank exposure in this regard look like the work of pikers.
Not only has nobody done a thing about that in our markets Germany, I remind you, urged them to expand their exposure -- and they have. In addition total credit market debt has expanded by $57 trillion since 2007, a close to 40% increase! GDP, on the other hand, has gone up nowhere near as much. Indeed, global government debt has roughly doubled since 2008 -- to $59 trillion.
I’ve grown sleepy watching for black swans, but still, could this be it?
How do these banks go broke? They steal from everyone, overcharge and cheat everyone. Execs take huge salaries. I can’t get a home loan or refinancing without them crawling up my butt and making me secure and guarantee everything.
Then they go broke?
Well, bully good for them. But don’t make me pay for it.
Beginning in 2008, could not Deutsche Bank start unwinding
their positions in derivatives and thus have a much less
risky portfolio? With 0 or negative rates paid to savers how could a bank not make money?
Of course, like all of these large banks, including those in the U.S., when their fecklessness in granting loans with no collateral catches up to them, to whom do they go for the bailout. THE TAXPAYERS, THAT’S WHO.
What ruling class usually expects from peons are:
(1) pay taxes
(2) fight their war
They are doing it again, and people are refusing to cooperate.
Yra Harris on the importance of DB (posted within the past 24 hours):
Whoa! Mario, it’s best to say nothing than to say something stupid. Mario, it’s the ripple effect that scares the hell out of the world.
DB supposedly has somewhere between 50-75 Trillions of derivatives floating out there. Nah, all is well. Nothing to worry about. Move along.
Here we go again....
I know what you mean.
Other things are in play tomorrow.
I’m sure our betters have everything under control...
Q&As on the New SDR Basket that Comes into Effect October 1, 2016
July 25, 2016
On November 30, 2015, the Executive Board of the International Monetary Fund (IMF) completed the regular five-yearly review of the basket of currencies that make up the Special Drawing Right (SDR).
The Board decided that, effective October 1, 2016 the Chinese renminbi (RMB) is determined to be a freely usable currency and will be included in the SDR basket as a fifth currency, along with the U.S. dollar, the euro, the Japanese yen and the pound sterling.
A short-term RMB instrument will also be added to the SDR interest rate basket. The Board decided to launch the new SDR basket on October 1, 2016 to provide lead time for the Fund, its members and other SDR users to adjust to these changes.
Couldn’t happen to a much more deserving bunch, and they are getting off easy whatever happens here.
Don’t care... if Germany doesn’t want to save them, let the bank fail.
And that will cause problems here? Oh well, our ‘elites’ will have to suffer...
I am not knowledgeable about Derivatives.
My question is: If Soros has taken a large short position, is there anything he can now do to trigger problems with the Derivatives.
Share prices drop below a certain level, loan covenant price requirements get triggered, sure. The share’s credit default swaps would be re-priced as banks move on the loan covenant provisions.
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