Deutsche: The Fed Has Created “Universal Basic Income For The Rich” And Now It Can’t Get Out

 

Two weeks after Aleksandar Kocic highlighted the moment in 2012 when the market stopped caring about newsflow and reality, and, in a word “broke” with pervasive complacency setting in regardless of macro uncertainty…

… Deutsche Bank’s post modernist master of stream-of-consciousness narrative is back with a new essay dissecting his favorite topic, the interplay between the Fed and markets, the so-called “umbilical limbo” that connects the two in the form of ultraeasy monetary policy and QE in general, and more importantly, the narrative that the Fed has spun over the past ten years, which while supportive of risk assets, has concurrently resulted in what Kocic calls a “permanent state of exception” from normalcy as a result of the Fed decision to defer the financial crisis indefinitely. 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

‘The pound is IRRELEVANT’ German financial giant Deutsche Bank in shocking Sterling swipe

Deutsche Bank

Deutsche Bank branded the pound ‘irrelevant’ [GETTY•ALAMY]

 

Britain’s currency is permanently tarred after the UK voted to leave the European Union (EU), according to one of the bank’s foreign exchange strategists.

As a result, the pound is set to lose its prized status as a leading international safe haven currency, said Robin Winklertold. Continue reading

Germany, Political Crisis and Superman

Germany’s former defense minister, Karl-Theodor zu Guttenberg, and Chancellor Angela Merkel (Getty Images)

 

Germany’s government, especially Angela Merkel, is proving inadequate. For a leader with the right personality and leadership, this could be a terrific opportunity to seize control of Germany.

Since 1982, the year E.T. the Extra Terrestrial was released and the Falkland War occurred, Germany has had only three chancellors. The United States has had five presidents in that time; Britain six prime ministers; and Italy 15 prime ministers. Even more remarkable: Since the end of World War ii, more than 70 years ago, Germany has had only nine chancellors. That’s an average of eight years per chancellorship. America, in that time, has had 12 presidents, six years per presidency; Britain 15 prime ministers, five years per prime ministership; and Italy 45 prime ministerships, averaging 1.5 years each.

Behind these facts is a fundamental truth: Postwar Germany, perhaps more than any other modern nation, is accustomed to political stability and order.

So what happens if this stable, dependent political system breaks down? History provides some insight. Continue reading

Expert Jim Rogers Says US is Desperate for Deutsche Bank Funds

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.com.

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. Continue reading

Eurozone banks are in DEEP trouble: Wall Street top bankers issue warning to EU

EUROPE’s biggest banks are vulnerable and pose a huge risk to financial stability, according to some of Wall Street’s top bankers.

Financial heavyweights from the US and Switzerland joined forces to sound the alarm over Deutsche Bank and its peers.

Goldman Sachs’ president Gary Cohn hit out at eurozone banks for failing to clean-up their balance sheets after the financial crisis. Continue reading

US fine for Deutsche Bank will DESTROY EU economy stability, warns Eurozone finance chief

GLOBAL finance leaders issued a fresh warning on economic stability for the EU today, slamming the huge U.S. fine for Deutsche Bank as a mass destabilisation of Germany’s largest bank.

Jeroen Dijsselbloem, the chairman of euro zone finance ministers, said that the U.S. Department of Justice’s demand that Deutsche Bank pay $14 billion for its role in the sub-prime mortgage crisis is too big and will undermine financial stability.

“Let’s hope it is an opening bid,” Dijsselbloem said on the sidelines of the International Monetary Fund and World Bank annual meetings in Washington. “These kinds of fines are completely oversized, and they are damaging to financial stability.” Continue reading

Forget too-big-to-fail, new concern is that many banks are too-weak-to-survive

Firms with over $11 trillion in assets would remain troubled even if interest rates rise, IMF says in new report

A third of biggest banks in the world’s richest countries are so weak their problems could not be solved even by a recovery and rising interest rates, the International Monetary Fund said in a new report released Wednesday.

About a third of European banks, with $8.5 trillion in assets, and a quarter of U.S. banks, with $3.2 trillion in assets, are in this too-weak-to-recover category, the IMF said. Continue reading

Deutsche Bank Chief Economist: DB Collapse Could Lead to the Next Great Depression

Despite being the fourth-largest bank in Europe with over $2 trillion in assets, Deutsche Bank’s (NYSE: DB) collapse is a huge possibility.

It simply doesn’t have the free cash flow necessary to pay the $5.4 billion Department of Justice settlement issued on Sept. 30. Currently, Deutsche Bank reports its free cash flow as $2.4 billion as of June. Continue reading

Deutsche Bank “Is Probably Insolvent”

This is getting to be a habit. Previous late summer holidays by this correspondent coincided with the run on Northern Rock, and subsequently with the failure of Lehman Brothers. So the final crawl towards the probable nationalisation of Deutsche Bank came as no particular surprise this year, but it is tiresome to relate nevertheless.

The 2015 annual report for Deutsche Bank runs to some 448 pages, so one rather doubts if even its CEO, John Cryan, has read it all, or has a complete grasp of, for example, its €42 trillion in total notional derivatives exposure. Continue reading

Italy set for SHOWDOWN with Germany over Deutsche Bank’s rescue package

RELATIONS between Germany and Italy are set to hit breaking point, if Berlin’s steps in to rescue Deutsche Bank, after blocking Rome from doing the same earlier this year.

The leader has reportedly begged Germany to let him loan cash to Italy’s banks, as investors have increasingly lost confidence in the institutions, which are saddled with billions of pounds worth of bad loans.

In particular, Italy’s oldest bank Monte Dei Pasche has looked close to collapse several times this year, and Mr Renzi is still trying to secure a £4.2billion (€5bn) cash injection from investors for the lender. Continue reading

US accused of waging economic war on Deutsche Bank

Global Geopolitics called it, you witnessed it: The United States and Germany, though the European Union it dominates and runs, are locked in economic warfare against one another.

It’s a very dangerous game America is playing by trying to gut the largest economy in the world, the European Union, especially when nations are beginning to jump to the Sino-Soviet bloc.

 

German parliament’s economics committee chairman Peter Ramsauer says he believes the $14 billion fine being leveraged against Deutsche Bank is part of a long US tradition of waging trade and economic war.

  • Ramsauer to Welt am Sonntag: Washington has a “long tradition” of waging trade wars, if they are favorable to the US economy, and the Deutsche Bank case is an example of that.
  • “The threat to force Deutsche Bank to pay a $14 billion fine over its mortgage-backed securities business before the 2008 global crisis has the characteristics of an economic war.”
  • “Extortionate damages claims” in the case are an example of that.” Continue reading

Is the Global Economic Crisis About to Hit Germany?

Deutsche Bank looks tailor-made to give Angela Merkel a headache.

Germany’s biggest banks are in big trouble. That’s not exactly news. Before the financial crisis, Deutsche Bank’s share price was nearly €100 (us$135) a share. At the start of this year it was €21.45 ($24). This week, it hit its lowest value since 1973 and currently stands below €11. Now its situation is so dire that its name is trending on Twitter.

Since the 2008 financial crisis, Germany has been the rock of stability for Europe’s economy. It has weathered the storm with low unemployment, while economic crises upended entire political systems elsewhere in Europe. Now the banks at the heart of Germany’s economy seem on the brink of going under. The global economic crisis that began in 2008 could be about to hit Germany.

Continue reading

It’s not just Deutsche. European banking is utterly broken

As was said in an earlier post, the fines imposed by the DoJ are ironically what the balance sheet looks like for Deutsche Bank, Volksagen et al. It’s economic warfare in that case.

 

Nine years after the initial eruption, it still rumbles on, with the epicentre now moved from the US to Europe. Only it’s not the same crisis; in large measure, it is completely different.

Today’s mayhem is not so much the result of reckless bankers and people asleep at the wheel of regulation, but rather of the public policy response to the last crisis itself – that is to say, regulatory overreach and central bank money printing.

All eyes are naturally focused on the specific problems of Deutsche Bank, but Deutsche is in truth no more than the canary in the coal mine. Continue reading

Deutsche Bank – The Meltdown Crisis

Most people don’t see a crisis. Out of the minority that does see it, a majority of that doesn’t see it for what it is: Economic warfare between the United States and the EU, mainly Germany.

Germany hit the NSA with a manufactured scandal. America then retaliated with sanctions on Volkswagen. Germany then retaliated through EU channels and began launching hits on Google, Facebook, Microsoft, Apple, etc… and all the other big companies doing business out there — which now leads us to the hit on Deutsche Bank.

To hear the words “Germany” and “instability” today in the same sentence is unheard of and absurd but that’s the world we now live in. Switzerland used to be one of the, if not the most, sound financially nations in the world. Now it’s gutted just as badly as Germany is being gutted. Note that the estimated fines on both Volkswagen and Deutsche Bank eerily mirror what can be found on their balance sheets.

 

Ten of the large hedge funds are withdrawing from Deutsche Bank. What must be understood here is that Deutsche Bank is the main clearing house for trades in Europe. The problem the hedge funds have is where do they move for clearing? Short-term, they can move to New York or London. With over $60 trillion derivative book at the Deutsche Bank, the government is totally incapable of even understanding how to deal with this crisis. We are looking at a major crisis in confidence.

Merkel is simply out of her mind to adhere to this insane policy of a bail-in. How can hedge funds stay with clearing at Deutsche Bank when she takes this position that would set off a catastrophic global meltdown. It still appears that Merkel will have to blink. Once people realize this is the real crisis, then the German debt market should turn down rather hard. Continue reading