Member of the Steering Committee of the Bilderberg Group & former Deutsche Bank CEO Josef Ackermann did an excellent job for his elite masters.
Back on December 11, I wrote a post titled Deutsche Bank: Something is Seriously Wrong. At the time, DB was trading in the low $24s, flirting with multi-year lows. I showed how the bank was seriously diverging (negatively) from the rest of the financial sector and I outlined some big time red flags on the chart. My takeaway at the time was that the long-term chart was suggesting further pain ahead. What a difference a month makes. Take a look:
Just this morning, Deutsche Bank issued a profit warning, stating that it expects its first full-year loss since 2008. That sent the already battered stock tumbling 5.5%, breaking below it’s all-time low. Today it actually traded lower than during the depths of the financial crisis. Where there’s smoke there’s fire folks. As I stated in my previous post, “this chart suggests something very bad is going on under the surface at DB.” Here’s a daily chart for a closer inspection of today’s action:
Ouch. Maybe NotQuant.com was on to something after all?
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On Thursday, we got the latest bad news out of Deutsche as Cryan reported what he called “sobering” results for 2015. In short, the bank is staring down a net loss of €6.7 billion for the year, the first annual loss since 2008. “We see further downside risk on litigation – we model another €3.6bn in 2016 – which is likely to necessitate a capital raise.”