Deutsche Bank

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Deutsche Bank

Postby goat balls » Thu Sep 29, 2016 9:48 pm

DB is not going to make it. Commerzbank may not either. Merkel has vowed not to bail them out.

This should start the real shitshow in the EU. Next up will be Italy, Portugal, Spain and maybe French banks. And Greece of course.

DB is the clearinghouse in the EU. Should be quite the show.

Somebody explain to hillary/obama voters what Germany is and that this could affect their welfare checks.
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Re: Deutsche Bank

Postby rickshaw92 » Thu Sep 29, 2016 10:34 pm

And UK banks?
Im reallly fuclimg pissed but fespite that I can still hit a tarfet at 1000m plus. mayVRVe bnot tonight but it qint beyond the wit if man. Nowhammy.
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Re: Deutsche Bank

Postby goat balls » Thu Sep 29, 2016 10:54 pm

UK banks are run by modern crime syndicates. But they're not as bankrupt as banks in the EU. Brexit will save the UK from going down with the EU ship.

RBS and Barclays are in dire straits. But Theres a run on the bank at DB right now. Everyone knew they were in trouble but something triggered this Avalanche. I don't know or care what. It doesn't matter really. But that same something could trigger a run on any of these banks in the EU very soon. DB has a special status in the EU and the only thing that can save it now is the German government. And they have vowed not to. And they are wrong. They have to intervene or the house of cards comes tumbling down.

You have a good day rickshaw. Cheers.
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Re: Deutsche Bank

Postby goat balls » Thu Sep 29, 2016 11:10 pm

Image
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Re: Deutsche Bank

Postby goat balls » Thu Sep 29, 2016 11:11 pm

Swiss and UK banks excluded.

DB is much worse now than when this chart was done.
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Re: Deutsche Bank

Postby goat balls » Thu Sep 29, 2016 11:16 pm

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.

Bloomberg News today:

[S]ome funds that use the bank’s prime brokerage service have moved part of their listed derivatives holdings to other firms this week, according to an internal bank document seen by Bloomberg News. Millennium Partners, Capula Investment Management, and Rokos Capital Management are among about 10 hedge funds that have cut their exposure, said a person familiar with the situation….

So far, these are just the first of Deutsche Bank’s 200 hedge-fund clients that use it to clear their derivatives transactions. Banking is a confidence game. When confidence sags, the whole construct comes tumbling down. And the first movers have a big advantage in getting their cash out in in time. Bloomberg:

Clients review their exposure to counterparties to avoid situations like the 2008 collapse of Lehman Brothers Holdings Inc. and MF Global’s 2011 bankruptcy when hedge funds had billions of dollars of assets frozen until the resolution of lengthy legal proceedings.

As the leak ricocheted around the world, Deutsche Bank shares plunged 6.6% in late trading today in Frankfurt to €10.25, having been down 8% at one point earlier. Shares are at the lowest level since they started trading on the Xetra exchange in 1992. They’re down 68% from April 2015. Just before the financial Crisis, they briefly traded at over €100 a share. By that measure, they’re down over 90%!

This comes after a 7.6% plunge on Monday. That rout was initiated Friday afternoon when Aunt Merkel, fretting about the general elections in the fall of 2017, informed voters via a leak that she had told CEO John Cryan in a “confidential meeting” that state aid was “categorically” out of the question.

Merkel’s popularity has recently taken a hit, and a big, immensely unpopular taxpayer bailout of bank stockholders and bondholders could cost her the election. The onslaught of contradictory denials that this episode has produced was a sight to behold.

So Tuesday, shares took a breath; Wednesday, they rose 2%; and today by mid-afternoon, they rose another 1% to €10.87, as falling knife-catchers were grabbing what they could, before all heck broke loose again.

Deutsche Bank’s market capitalization has shriveled to €14 billion ($15.7 billion), a few bad trading days away from the $14 billion in fines that the US Department of Justice wants in order to settle the allegations surrounding Deutsche Bank’s residential mortgage-backed securities that blew up during the Financial Crisis.

Deutsche Bank isn’t getting singled out. US Banks have already settled their RMBS allegations: Bank of America for $16.7 billion, JP Morgan for $9 billion, Citigroup for $7 billion, Goldman Sachs for $5 billion, and so on. They all settled for less than the original amount. Deutsche Bank will be able to settle for less as well. But its problem isn’t just the Department of Justice.

Today’s massacre came when evidence trickled out that the next phase has begun: that some financial institutions, particularly in the derivatives arena where Deutsche Bank is so exposed, are beginning to lose confidence and are withdrawing cash. When word got out that counterparties were losing confidence in Lehman, it started a stampede for the exits – and triggered the collapse.

Problems at a big bank are always categorically denied by both the government and the bank. Banking is a confidence game, and confidence has to be maintained at all costs or else the bank is toast. So, in that vein, Deutsche Bank spokesman Michael Golden, told Bloomberg:

“We are confident that the vast majority of [our trading clients] have a full understanding of our stable financial position, the current macroeconomic environment, the litigation process in the U.S., and the progress we are making with our strategy.”

But the government, looking at a financial system that might face an existential crisis if Deutsche Bank were allowed to collapse, appears to take this seriously. On Tuesday, the German daily Zeit Online reported that, “despite all the denials,” the government is working on a bailout plan as it “fears a financial emergency”:

Officials in Berlin [German government], Brussels [EU government], and Frankfurt [ECB] are working on a contingency plan for the largest German financial institution, according to information Die Zeit received. Also state aid could be paid.

It would become effective when the bank needs additional capital but cannot raise it in the markets.

The plan has several components. The bank could sell parts of it business to other financial institutions at inflated prices so that it would find relief but not lose money on the transaction. As incentive for reluctant buyers, the government could hand out guarantees. In addition, the government could buy a large stake in the bank – “25% is being discussed.”

This would dilute stockholders even further. But at the current share price, it would not even raise a lot of money. So if push comes to shove, with shares sinking further, the stake could be much larger with ugly consequences for current stockholders.

As by now expected, the government denied the bailout plan point blank via our hapless spokesman: “This message is incorrect. The federal government is not preparing any rescue plans. The reason for such speculations does not exist.”

But some counterparties with money on the line aren’t buying the denials; they’re already losing confidence and voting with their feet.

And bank investors are not amused. Read… EU Banking Mayhem, One Bank at a Time, then All at Once
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Re: Deutsche Bank

Postby rickshaw92 » Fri Sep 30, 2016 12:31 am

goat balls wrote:UK banks are run by modern crime syndicates. But they're not as bankrupt as banks in the EU. Brexit will save the UK from going down with the EU ship.

RBS and Barclays are in dire straits. But Theres a run on the bank at DB right now. Everyone knew they were in trouble but something triggered this Avalanche. I don't know or care what. It doesn't matter really. But that same something could trigger a run on any of these banks in the EU very soon. DB has a special status in the EU and the only thing that can save it now is the German government. And they have vowed not to. And they are wrong. They have to intervene or the house of cards comes tumbling down.

You have a good day rickshaw. Cheers.


I live in England so thank fuck for this! You have a good day too mate.
Im reallly fuclimg pissed but fespite that I can still hit a tarfet at 1000m plus. mayVRVe bnot tonight but it qint beyond the wit if man. Nowhammy.
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Re: Deutsche Bank

Postby Q » Fri Sep 30, 2016 3:38 pm

The is the best news possible.


That cunt Merkel is fucked. When she bails DB out (she'll have to based on VW alone.) it'll be the final nail.

Between that and all the rapefugees, she and her party are finished. Germany awakens.
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Re: Deutsche Bank

Postby goat balls » Sat Oct 01, 2016 1:25 pm

I'm getting little hints here and there that the powers that be are once again going to try and paper this over. DB has its on set of severe problems but so does the whole global financial sector. On top of it all, we have central bank intervention.

It appears hopeless. They will try to create a new global monetary system within two years as the current one is in a shambles. It's surprising that they've held it together this long.

What should the name of the new currency be? The U.S. Green Paper Crap? And the pound?
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Re: Deutsche Bank

Postby Kurt » Sat Oct 01, 2016 1:27 pm

DB is like the Merrill Lynch of Europe. But where every other banks know Merrill is at the forefront of everything wrong with the economy of the future, it serves a purpose so it will never be allowed to fail.

DB has the status of Goldman in Euroland. This should be fun.
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Re: Deutsche Bank

Postby goat balls » Sat Oct 01, 2016 2:50 pm

The whole to big to fail should be to interconnected to fail. When they bail out one of these, they're really just stopping the others from taking losses. At our expense of course.

Only a very few people realize how big this problem is. It looks like the bankers plan is to install Hillary in the White House and her "justice" minister and "treasury secretary" will deal with the coming implosion based on a pay to play system. Why a 70 year old witch needs another billion dollars is beyond me. Psychopathic mental problems here.
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Re: Deutsche Bank

Postby goat balls » Sat Oct 01, 2016 2:59 pm

Btw, you know who's computer models are projecting a trump win. And the models are projecting serious political upheaval in the EU. Merkel has single handedly done more to destroy the EU than anybody. Remarkable incompetence.
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Re: Deutsche Bank

Postby MJK » Sun Oct 02, 2016 1:42 am

She owns property next to the Bush family in Paraguay, directly over the largest freshwater aquifer in the world. Why do you suppose that is? The bitch throws illuminati triangle gang signs over her cookie jar left and right. That is her answering the unasked question, "Whose is this?" She has performed her part flawlessly. Let's see just what it is that she had her constituency set aside emergency provisions for….glad to be watching from here.

Still, Merkel couldn't pack George Soros' lunch when it comes to destroying Western Europe. That old lizard must have precognitive abilities 'cause he sure is a juicy bad guy target. Make sure the wet team doesn't leave until a white ash stake has been driven through his black heart.

Like Hilary, DB is dead and a holographic representation is hiding that fact until years from now when the old DB headquarters is a mosque.
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Re: Deutsche Bank

Postby goat balls » Sun Oct 02, 2016 3:54 pm

There's been a rumor that the US DOJ has negotiated a 4.5 billion dollar fine for DB instead of 14 billion. This is a fine for the latest felony they've committed. But the DOJ is now saying that they haven't even started negotiations with DB.

Now Italy has charged DB with market manipulation and creating false accounts.

And some mayor in Germany agreed to take on more Muslims and the locals almost beat the guy to death. Merkel the Destroyer.
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Re: Deutsche Bank

Postby MJK » Mon Oct 03, 2016 9:38 am

ZH had a story about ATM outages and other service failures at DB branches; I think that it is on like Donkey Kong this coming week with a run on DoucheBank leading to 'interesting times'. They are sure moving around a lot of mil metal up here. TPTB may just bust a cap to distract us from the financial collapse.
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