The hits for Deutsche Bank just keep on coming. One day after a report that the German lender has imposed a hiring freeze in the latest bid to reassure investors that it has expenses under control and is stemming the outflow of cash, moments ago Reuters reported that Deutsche Bank’s finance chief told his staff that job cuts at the bank could be double that planned, a step that could remove 10,000 further employees.
Such cuts would likely take many years but setting such a goal could reassure investors that the bank is determined to tackle costs that sources said the European Central Bank sees as bloated. Unless, of course, they are forced to cut much faster. If 10,000 job losses were ultimately to follow the 9,000 announced by management in October 2015, roughly one in five of the bank’s workforce around the globe would be affected. Continue reading »
Must-see for my German speaking readers.
Oct 10, 2016
As the powers-that-be play whack-a-mole with various systemic risk indicators, desperately tamping down contagion concerns, amid no progress in strengthening the world’s most systemically dangerous bank; we warned two weeks ago of yet another canary in the coalmine of Deutsche Bank’s demise (that no one was looking at). This week, that canary… died.
The main reason the US government wants $14 billion in penalties from the German bank is that it is deep in debt. They’ve got a gigantic deficit – they are desperate for money. They’ll try to get it anywhere they can, Jim Rogers, financial commentator and investor, told RT.
Germany’s Deutsche Bank reportedly failed to reach an agreement with the US on settling a massive fine. The bank is facing a $14 billion fine penalty from the US Justice Department for mis-selling mortgage securities in the run-up to the 2008 financial crisis.
RT: Firstly just to make it clear why has the US imposed such an enormous penalty?
Jim Rogers: The main reason is that the US government is deep in debt. They’ve got a gigantic deficit – they are desperate for money. They’ll try to get it anywhere they can. I can’t imagine that Deutsche Bank should be liable for $14 billion, but I’m not involved. Continue reading »
Deutsche is way “Tooooooo Big To Save”, thanks to former CEO, Rothschild puppet & Bilderberg Josef Ackermann.
The next several days up to Oct. 12 (Yom Kippur) have a high probability for something “big” to happen.
Prepare for (an epic) collapse.
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The next several days up to Oct. 12 (Yom Kippur) have a very high probability for something “big” to happen.
Prepare for (an epic) collapse.
In addition to 100s more job cuts, Deutsche Bank stock is tumbling on the back of Bloomberg reports that the German government isn’t in talks with the U.S. Department of Justice over Deutsche Bank.
- There are no talks taking place with the DoJ, German government official says on customary condition of anonymity
- German government has always made clear that this is about talks between the U.S. authorities and Deutsche Bank: official
And the reaction is a heavy volume dump…
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Nearly four years after it was first revealed that Deutsche Bank had engaged in various shady deals at the height of the financial crisis designed to mask Monte Paschi’s financial woes, on October 1 Italy finally charged the German lender and 6 of its current and former managers, including the infamous Michele Faissola (much more on him soon), Michele Foresti and Ivor Dunbar, for colluding to falsify the accounts of Italy’s third-biggest bank, Monte Paschi, and manipulate the market. Two former executives at Nomura Holdings Inc. and five at Banca Monte dei Paschi di Siena were also charged.
As Bloomberg reported, prosecutors have been reconstructing how Monte Paschi’s former managers misrepresented the lender’s finances in the years through the two deals signed with Deutsche Bank in 2008 and Nomura in 2009. The investigation revealed Monte Paschi arranged the transactions to hide billions in losses that led to false accounting between 2008 and 2012, according to a prosecutors’ statement released Jan. 14, when they completed the investigation. Continue reading »
So much for last week’s rumor of an imminent reduction in the DOJ $14 billion settlement, which sent the price of DB soaring, and propelled the global stock market higher.
Moments ago, Reuters reported that the German government is pursuing “discreet talks” with U.S. authorities to help Deutsche Bank secure a swift settlement over the sale of toxic mortgage bonds.
German officials have, until now, played down their role in the standoff, saying it is up to Deutsche to work out a deal with the DOJ, which is demanding $14 billion to settle RMBS misselling claims. But now it has been confirmed that Berlin government officials are hoping to “facilitate a quick deal that would buy Deutsche Bank time to regain its footing.” Continue reading »
It is not solvency, or the lack of capital – a vague, synthetic, and usually quite arbitrary concept, determined by regulators – that kills a bank; it is – as Dick Fuld will tell anyone who bothers to listen – the loss of (access to) liquidity: cold, hard, fungible (something Jon Corzine knew all too well when he commingled and was caught) cash, that pushes a bank into its grave, usually quite rapidly: recall that it took Lehman just a few days for its stock to plunge from the high double digits to zero.
It is also liquidity, or rather concerns about it, that sent Deutsche Bank stock crashing to new all time lows earlier today: after all, the investing world already knew for nearly two weeks that its capitalization is insufficient. As we reported earlier this week, it was a report by Citigroup, among many other, that found how badly undercapitalized the German lender is, noting that DB’s “leverage ratio, at 3.4%, looks even worse relative to the 4.5% company target by 2018” and calculated that while he only models €2.9bn in litigation charges over 2H16-2017 – far less than the $14 billion settlement figure proposed by the DOJ – and includes a successful disposal of a 70% stake in Postbank at end-2017 for 0.4x book he still only reaches a CET 1 ratio of 11.6% by end-2018, meaning the bank would have a Tier 1 capital €3bn shortfall to the company target of 12.5%, and a leverage ratio of 3.9%, resulting in an €8bn shortfall to the target of 4.5%. Continue reading »
Instead of doing what many have correctly suggested he should be doing, namely focusing on ways to raise more capital for the undercapitalized Deutsche Bank in order to stem the slow (at first) liquidity leak, first thing this morning CEO John Cryan issued another morale-boosting note to employees of Deustche Bank who have been watching their stock price crash to another record low, dipping under €10 in early trading for the first time ever. In the memo the embattled CEO worryingly did what Dick Fuld and other chief executives did when they felt the situation slipping out of control, namely blaming evil “rumor-spreading” shorts, saying “our bank has become subject to speculation. Ongoing rumours are causing significant swings in our stock price. … Trust is the foundation of banking. Some forces in the markets are currently trying to damage this trust.”
Just as important, Cryan confirms the Bloomberg report that “a few of our hedge fund clients have reduced some activities with us. That is causing unjustified concerns.” As we explained last night, the concerns are very much justified if they spread to the biggest risk-factor for the German bank: its depositors, which collectively hold over €550 billion in liquidity-providing instruments. Continue reading »
Counterparties lose confidence, withdraw cash.
Deutsche Bank, with $2 trillion in assets, amounting to 58% of Germany’s GDP, one of the most globally interwoven banks, with gross notional derivatives exposure of €46 trillion, right at the top along with JP Morgan (booked as €41 billion in derivative trading assets after netting and collateral) – this creature of risk and malfeasance, is finally starting to scare its counterparties.
This is how Lehman came unglued. Slowly and then all of a sudden.
For your entertainment.
In what is surely the most stealthy version of Wednesday humor we have ever posted, Bloomberg reports that according to Yigit Bulut, chief adviser to Turkish President Recep Erdogan, Turkey should consider “using a new wealth fund or a group of state-owned banks to buy” the embattled Deutsche Bank. Bulut made the proposal on Tuesday via his Twitter account, saying Germany’s largest lender should be made into a Turkish bank.
— Y???T BULUT (@yigitbulutt) September 28, 2016
“For months on TV programs, I’ve been calling on Turkey’s private and public capital: ‘Some very good companies in the EU are going to fall into trouble and we need to be ready to buy a controlling stake in them,’” Bulut wrote on Twitter. “Wouldn’t you be happy to make Germany’s biggest bank into a Turkish bank!!” the advisor said, cited by Bloomberg. Continue reading »
And again: Prepare for collapse.
Since 2008, I’ve been warning Natural News readers about the inevitable, mathematically unavoidable global debt collapse. For the last eight years, crooked politicians and criminal banksters have been “kicking the can down the road” with endless money printing and currency debasement. Now, it appears, we’ve all run out of road.
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“Bad choice. I prefer the late Frank Zappa’s “THE MOTHERS OF INVENTION”…”
The “most systemically dangerous bank in the world” is in grave trouble. Despite exclamations that there is “no need for additional capital” and that “Deutsche Bank is no Lehman” investors are fleeing the bank’s assets en masse as professionals pile in to buy counterparty risk protection. With the only thing standing between bank runs and stability being the confidence of depositors, and knowing full well that everybody lies when it gets serious, one witty trader noted, “if it walks like Lehman, and talks like Lehman… it is Lehman.”
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“You Can’t Compare Deutsche Bank To Lehman”
… because Deutsche is much, much worse than Lehman.
So move along, there is nothing to see here.
“When it’s important, you have to lie,” is the now well-known mantra from European leaders when the crisis hit. So when a German politician proclaims “you can’t compare Deutsche Bank with Lehman. The bank is in a position to get out of this situation on its own,” it’s time to panic. Just a week after the 8th anniversary of Lehman’s collapse, the multi-trillion dollar derivative book of Deutsche Bank dwarfs that of Lehman… and the credit markets are starting to wake up again.
Following government exclamations that there will be no bailout for Deutsche Bank, Hans Michelbeck – from Merkel’s Christian Democrat-led bloc and a member of German lower house’s finance committee – confirms it is “unimaginable” that the German government would support Deutsche Bank AG with taxpayers’ money. Continue reading »
“When will she buckle?”
Maybe somewhere between Sept. 30 and Oct. 12? (Sept. 30 would make a lot of sense.)
So always go shopping on Thursdays and stock up on everything.
Oh wait … I can tell you exactly when Deutsche will collapse:
It will collapse when Lord Rothschild is pressing the ‘sell all Deutsche shares’ button …
H/t reader squodgy:
“Angela is NOT a Rothschild. She has no say in the future of the Deutsche Bank. That rests with you know who.
Based on the historical events pertaining to the rule of the “too big to fail” principle, and the current share valuation, would it be prudent to consider purchasing shares in it?……or…. based on the principle of exclusive Rothschild ownership comprising Debentures, Preferential Shares, Class ‘A’s, Class ‘B’s and then the risky unprotected dross which we mere serfs can buy….”Ordinary Working Class Shares” it seems those in power benefit at our expense yet again………So steer clear.”
When will she buckle?
Shares of Deutsche Bank got bashed 7.6% today, to €10.49 in Frankfurt, down 67% from April 2015, to the lowest level since they started trading on the Xetra exchange in 1992. They traded below that level in the early 1980s, but decades of inflation have whittled down the purchasing power so much that comparisons are meaningless.
Deutsche Bank’s 5-year default probability spiked to the highest level this year. Continue reading »
Deutsche is to big to safe, thanks to former CEO, Bilderberg & Rothschild puppet Josef Ackermann.
Deutsche Bank, one of Europe’s behemoths, is in very deep trouble having lost 90% 0f its share price value since 2007, has been falling sharply all this last year (48% loss this year) and, with its $42 Trillion in Derivatives exposure was singled out by the IMF, as the bank which ,
“appears to be the most important net contributor to systemic risks…”
Of course Deutsche agues the standard ‘derivatives-aren’t-a-problem’ line, that this 42 trillion all nets out and their real exposure is a fraction of that vast figure. Which is fine as long as you think that in the event of Deutsche coming unstuck, 42 trillions-worth of derivatives contracts can be held in abeyance for the time it would take for all those contracts to be netted out. As I’ve said before netting out is akin to getting a rowing boat full of people to all change places without the boat overturning. Continue reading »