As yet another reminder, and you may well already know after being a reader here for a while, Deutsche Bank has over $70 trillion in derivatives exposure. We could be seeing the effects of that right now. What’s more, Commerzbank is a “Tochterunternehmen” of Deutsche Bank. In English, that’s to say it’s a subsidiary. Therefore, the true scale of DB’s exposure is not 100% known. In this century’s total economic collapse race, Germany is making a strong push to be the first in the world. America’s in the same boat, but it has a better method in kicking the can down the road.
EUROPE’S biggest economy was plunged into fresh chaos tonight amid warnings a new financial crisis in Germany could destroy the EU.
Shares in Germany’s two biggest lenders – Deutsche Bank and Commerzbank – fell sharply again as panic gripped global markets. They have now seen their combined market value plummet by more than £14BILLION in the past three months.
Deutsche Bank shares fell by nearly four per cent to close at an all-time low amid turmoil not seen since the depths of the financial crisis in 2009.
Meanwhile shares in Commerzbank, Germany’s second biggest lender, fell even further, by 4.65 per cent, to close at their lowest level in nearly two-and-a-half years.