If you have
been waiting for “the next Lehman Brothers moment” which will
cause the global financial system to descend into a state of mass
panic, you might want to keep a close eye on German banking giant
Deutsche Bank. It is approximately three times larger than Lehman
Brothers was, and if the most important bank in the strongest economy
in Europe were to implode, it would instantly send shockwaves
rippling across the entire planet.
[...]
The
following comes from Zero Hedge...
“A
month after admitting to rigging precious metals markets, Deutsche
Bank has been hit with a double-whammy of more alleged fraudulent
behavior today and the stock is sliding. First, Reuters reports that
the bank took a charge of 450 million euros for “equity trading
fraud,” and then Bloomberg reports that The SEC is looking into
Deutsche’s post-crisis mortgage positions.”
This is a
bank that is steadily bleeding money, and so the last thing that it
needs is for government agencies to be putting immense pressure on
it.
[...]
But even if
there were no scandals and no government investigations, the truth is
that Deutsche Bank would be a deeply troubled bank anyway. At one
point, it was estimated that Deutsche Bank had 64 trillion dollars
worth of exposure to derivatives contracts. That is an amount of
money that is approximately 16 times the size of the GDP of the
entire nation of Germany. So nobody wants to see Deutsche Bank fail.
It would be a financial disaster unlike anything the world has ever
experienced before.
[...]
Earlier this
year, Deutsche Bank’s stock price set a new record low, and since
that time it has been hovering just above that record low. Clearly it
is no secret that Deutsche Bank is having big problems, and the
outlook for the immediate future is not good.
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