The derivative exposure mentioned by Martin Armstrong is what has been covered on Global Geopolitics numerous times over the years under the following posts:
Is Deutsche Bank Kaputt?
New financial MELTDOWN set to sink EU as German banks lose £14,292,610,000.00 in 90 DAYS
Deutsche Bank Exodus Continues As Real Estate Chief Leaves For Blackstone
Is Deutsche Bank the next Lehman?
Deutsche Bank Is Scared: “What Needs To Be Done” In Its Own Words
End of the eurozone? Germany’s biggest lender Deutsche Bank CRASHES with first annual loss
Deutsche Bank shocks with warning of €6bn losses
This week, a German cooperative savings bank in the Bavarian village of Gmund am Tegernsee with less than 10,000 in population, announced it will begin charging retail customers to hold their cash starting in September. This will apply to accounts greater than €100,000 euros. This means the bank will charge customers 0.4 percent, which amounts to a direct pass-through of the current level of the ECB’s negative deposit rate. After speaking directly with banking sources, what is happening is that cash is flooding into German banks from around Europe just to park avoiding the negative deposit rate. Now, the banks are starting to pass the negative rates back to the clients. However, much of this flow of capital has also been money fleeing other banks outside of Germany for fear that the euro will break and they will get Deutschemarks. Continue reading