DB warns of US debt crisis.

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“A coming debt crisis in the US?” warns a Deutsche Bank report* by Quinn Brody and Torsten Slok.

This graph is gorgeous. US deficits have, historically, been driven overwhelmingly by the state of the business cycle, and have very little to do with tax policies and spending decisions that dominate press coverage. In booms, income rises, so tax rate times income rises. In busts, the opposite, plus “automatic stabilizer” spending kicks in.

Until now. Continue reading

Deutsche Bank MELTDOWN: Shares plunge as bank tries to raise £6.9BILLION in call for cash

Deutsche Bank’s share price plunged on Monday [Bloomberg]

 

DEUTSCHE Bank shares have dived by six per cent after it announced a shock share sale aimed at raising €8billion (£6.9bn) of cash in a desperate bid to shore up the German giant.

The chief executive John Cryan previously said such a move would be a last resort for the bank.

Now Germany’s largest lender wants to raise the extra capital amid reports of more legal issues, which could lead to more big fines for the troubled firm.

It is the fourth time the bank has had to turn to investors for extra cash since 2010 and suggests Mr Cryan’s previous plans to save the bank have failed. Continue reading

Financial CRISIS: Will Deutsche Bank collapse be WORSE than Lehman Brothers in 2008?

WOULD the collapse of the German banking giant be another Lehman moment for the global banking sector? 

The dramatic collapse of Lehman Brothers eight years ago this month was a defining moment of the devastating financial crisis.

Eight years on, Deutsche Bank’s shares fell to an all-time low today amid fears that it cannot afford to pay a huge fine from the US.  Continue reading

Italy’s PM Unloads On Deutsche Bank’s Unfixable Problem: “Hundreds And Hundreds Of Billions Of Derivatives”

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After a tumultuous week for Deutsche Bank which saw the DOJ demand a $14 billion settlement for the bank’s past RMBS transgressions, it was another bad day for the giant German lender, whose stock and contingent converts tumbled after the investing community realized that even a modest $5.5 billion final settlement would leave it perilously undercapitalized and likely scrambling to raise more cash.

As SocGen’s Andrew Lim calculated, Germany’s biggest bank would be “significantly undercapitalized” even if an eventual settlement with the DoJ can be covered by the bank’s reserves. Any settlement above €5.4 billion would imply a capital increase is needed just to pay the fine, he wrote. Continue reading

Is Deutsche Bank Kaputt?

It looks like Deutsche Bank is heading toward failure. Why might we be concerned?

The problem is that Deutsche is too big to fail — more precisely, that the new Basel III bank resolution procedures now in place are unlikely to be adequate if it defaults.

Let’s review recent developments. In June 2013 FDIC Vice Chairman Thomas M. Hoenig lambasted Deutsche in a Reuters interview. “Its horrible, I mean they’re horribly undercapitalized,” he said. They have no margin of error.” A little over a year later, it was revealed that the New York Fed had issued a stiff letter to Deutsche’s U.S. arm warning that the bank was suffering from a litany of problems that amounted to a “systemic breakdown” in its risk controls and reporting. Deutsche’s operational problems led it to fail the next CCAR — the Comprehensive Capital Analysis and Review aka the Fed’s stress tests – in March 2015. Continue reading

Deutsche Bank Profit Plunges 98% And The Worst Is Yet To Come

The latest confirmation that Germany’s troubled banking giant Deutsche Bank is unable to navigate the troubled waters of NIRP came on Wednesday when the bank announced that its second-quarter net income fell 98% from a year earlier, hurt by weaker performances in trading, investment banking and other core areas. The lender said net income tumbled to €20 million ($22 million) from €818 million a year earlier, modestly better than the €22mm loss expected, while net revenue dropped 20% to €7.4 billion.

After rebounding modestly on the beat, the bank’s shares fell tumbled 5% on Wednesday morning, their lower level in 2 weeks; today’s decline has dragged DB stock 45% lower in 2016, making it one of Europe’s worst performers YTD (the Stoxx 600 is down 27% in 2016). Continue reading

Deutsche Bank: “If One Wanted A Simple Indicator Of A Broken Financial System, Then This Is It”

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If there is one bank that is more concerned than any other about global central bank unorthodoxy, it is Deutsche Bank which as we reported yesterday, saw its stock price drop to a record low yesterday. As such it is not surprising that in his overnight note, DB’s Jim Reid focuses on the “broken financial system” and highlights the one indicator that confirms just how broken the system is: the Bund Yield.

Continue reading

After Crashing, Deutsche Bank Is Forced To Issue Statement Defending Its Liquidity

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The echoes of both Bear and Lehman are growing louder with every passing day.

Just hours after Deutsche Bank stock crashed by 10% to levels not seen since the financial crisis, the German behemoth with over $50 trillion in gross notional derivative found itself in the very deja vuish, not to mention unpleasant, situation of having to defend its liquidity and specifically assuring investors that it has enough cash (about €1 billion in 2016 payment capacity), to pay the €350 million in maturing Tier 1 coupons due in April, which among many other reasons have seen billions in value wiped out from both DB’s stock price and its contingent convertible bonds which are looking increasingly more like equity with every passing day. Continue reading

This Is The Endgame, According To Deutsche Bank

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DB’s Jim Reid lays out the “endgame” scenario, one which this website first said is inevitable back in 2009. With Citi and Macquarie already on board, expect what was once merely the figment of a “deranged tinfoil conspiracy-theory blog’s” imagination, to become global monetary policy. And yes, the real endgame is the one we have said from day one: total fiat (and conventional economics) collapse.

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From Deutsche Bank’s chief credit strateigst Continue reading

Farewell to the “Commemorative Culture”

BERLIN (Own report) – Several citizens’ initiatives are unambiguously repudiating the semi-official German “commemorative culture.” Particularly the “Train of Commemoration” is raising serious accusations against the German government, on the occasion of the upcoming commemoration of the Nazi November Pogroms. According to the initiative’s voluminous publication, Berlin is crossing the line between revisionist theses and open denial of Nazi mass crimes. Aside from the token public events, the Federal Republic of Germany is expending a great amount of energy and mobilizing all official means in opposition to the survivors of Nazi terror, to avoid having to face the inherited debt left by its predecessor state (“Train of Commemoration, the Deutsche Bahn and the Struggle against Forgetting”). These accusations against Berlin are not new, however they are now accompanied with documentary evidence. The publication of this work comes at an embarrassing moment for Berlin, because demands are becoming louder in other European countries for a complete settlement of debts from Nazi crimes. In October, Italy’s Supreme Court ruled that lawsuits against the Federal Republic of Germany on the question of compensation are subject to review by courts.

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Deutsche Bank opens 200-tonne gold storage facility in Singapore

Deutsche Bank has launched its second-biggest gold-storage vault in Singapore that can hold up to 200 tonnes of the metal as it looks to capture surging global demand for physical bullion.

“There is a growing interest to buy physical gold for investment purposes,” Mark Smallwood, head of wealth planning at Deutsche Asset & Wealth Management for the Asia-Pacific region, told Reuters in an interview. Continue reading