A Bank With 49 Trillion Dollars In Exposure To Derivatives Is Melting Down Right In Front Of Our Eyes
(This was meant to be a short #dlike post, but I couldn’t log in there today.)
Could it be possible that we are on the verge of the next “Lehman Brothers moment”? Deutsche Bank is the most important bank in all of Europe, it has 49 trillion dollars in exposure to derivatives, and most of the largest “too big to fail banks” in the United States have very deep financial connections to the bank. In other words, the global financial system simply cannot afford for Deutsche Bank to fail, and right now it is literally melting down right in front of our eyes. For years I have been warning that this day would come, and even though it has been hit by scandal after scandal, somehow Deutsche Bank was able to survive until now. But after what we have witnessed in recent days, many now believe that the end is near for Deutsche Bank. On July 7th, they really shook up investors all over the globe when they laid off 18,000 employees and announced that they would be completely exiting their global equities trading business…
I’m really surprised that Deutsche Bank circling the drain seems to be getting relatively little attention from America’s media, other than for some outlets specializing in the financial markets.
Question for the Europeans here: are European media outlets doing extensive reporting on DB’s woes?
no worries.. the european central bank will pump paper money into it until the money printing press breaks!
Heh. Yeah, Lagarde might prove to be even looser with stimulus than Draghi has been. What could possibly go wrong?
in nominal euro terms nothing... hard assets are a different game...
That’s what concerns me, the banks know that printing more is there only option.
I really don’t know if this will be a repeat of 2008, they will just print us down the drain
Yeah I'm in the US and this is the first I'm hearing of it
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Good call. I had not heard of this.
I don't read/watch the news so don't know. :D
At least, no one I have talked to has talked about it yet, but I don't generally hang around so many finance type people on the day to day.
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Surprising indeed! They are disguising it as a divestiture instead of a failure but it will be interesting to see what they do with the balance sheet and who are their counterparts at risk which is the risk that started crisis years ago.
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