Deutsche Bank toxic derivative losses

AG47

Moby_Tide wrote: »

Surely on the basis that between the 9th and 19th of September they managed to shave $20T off their notional derivative losses that you manage the book for, by mid October they are well on the way to a $??T profit?

Do not understand, where do your numbers come from?

Do you even know what coco bonds are? They will be triggered as soon as the downgrade comes.

I think the credit reference agencies should all be downgraded in credibility. They are still claiming DB is BBB :rotfl::rotfl:

This is one of the largest stories in the financial world right now. I have been saying this for a long time.

AG47

theEnd wrote: »

If DB does go down it'll be interesting to see if any of the changes made since 2008 will help things.

I think it won't be as bad. Banks have been hugely reducing their derivative positions. Hedging, clearing and margins have been tightened. With EMIR it *should* be easy to analyse the systemic risk and it *should* be quite low.

The shareholders and a lot of the bondholders will be wiped out.

Wrong, the derivatives have got larger since 2008, a hell of a lot larger

AG47

Thrugelmir wrote: »

If a banking crisis were to occur in Europe. Could the Euro survive. That must be the question now.

You are asking the small question and missing the elephant in the room

Can the worlds financial system survive a too big to fail bank now failing

AG47

Deutsche Bank is Imploding at the Very Worst Time for the Bad Guys!

Deutsche Bank is imploding. Stock is down 7% at the time of this writing. MSNBC is saying Deutsche Bank will have "absolutely no effect on JP Morgan"...

HA!!

We have arrived my friends. It will only get worse from here.

Here's the news...

Major Dollar Shortage Exposed In Europe As Deutsche Bank Contagion Spreads
http://www.zerohedge.com/news/2016-09-29/major-dollar-shortage-exposed-europe-deutsche-bank-contagion-spreads

"Storm in a teacup" this is not.

While global markets remain calm(ish), distracted by OPEC headlines, US election 'entertainment', and Middle East proxy wars, the reality is, something very ugly is accelerating in Europe. With the collapse of the "most systemically dangerous bank in the world" we should hardly be surprised, but Deutsche Bank's crash is being shrugged off by average joes on mainstream media... and besides, the central banks will save us, right?

Well, Deutsche contagion is spreading... rapidly.

END more...

Some Deutsche Bank Clients Reduce Collateral on Trades
http://www.bloomberg.com/news/articles/2016-09-29/some-deutsche-bank-clients-said-to-reduce-collateral-on-trades

A number of funds that clear derivatives trades with Deutsche Bank AG have withdrawn some excess cash and positions held at the lender, a sign of counterparties' mounting concerns about doing business with Europe's largest investment bank."

END

More to come this weekend.

US Congress FINALLY Does Their Job!

Amazing!

Congress finally stood up and did something for their country!

Amazing!

Congress Overrides Obama's Veto of 9/11 Bill
https://www.washingtonpost.com/news/powerpost/wp/2016/09/27/senate-poised-to-vote-to-override-obamas-veto-of-911-bill/

Congress on Wednesday voted overwhelmingly to override President Obama's veto of legislation that would allow 9/11 victims' families to sue the Saudi Arabian government over its alleged support for the terrorists who carried out the attacks.

It is the first override of Obama's presidency.

The votes in the House and Senate amounted to a sweeping, bipartisan rejection of pleas from the White House to back the president, with administration officials arguing the legislation poses a national security threat by exposing U.S. officials to similar lawsuits abroad.

"Overriding a presidential veto is something we don't take lightly, but it was important in this case that the families of the victims of 9/11 be allowed to pursue justice, even if that pursuit causes some diplomatic discomforts," Sen. Charles E. Schumer (D-N.Y.), who co-authored the bill with Sen. John Cornyn (R-Tex.), said in a statement.

END

As I stated in today's Hump Day interview this single action will reverse 45 years of US Dollar artificial support from the implementation of the Petro-Dollar. For 45 years the Saudi's working closely with the CIA to ensure

AG47

Germany's 2nd Largest Derivative Bank Imploding Too!

Yes, we all know that Deutsche Bank has a huge derivative problem...but they aren't alone. Now even close. Back in March the second largest bank in Germany, Commerzbank, was eaten alive by their derivative book and has been on life support ever since. Here's the announcment of their FIRING of their head of derivatives back then that got little news coverage...

Commerzbank derivatives head to leave
http://www.securitieslendingtimes.com/securitieslendingnews/article.php?article_id=220481#.V-0niNzLPXk

Commerzbank's Eugene Stanfield, head of derivatives execution and clearing, is set to leave the bank after eight years, according to multiple sources.

Stanfield has managed the bank's over-the-counter client clearing, foreign exchange prime brokerage and futures and options execution and clearing since 2009.

Previously, Stanfield worked at Dresdner Kleinwort Wasserstein until 2008, when the British-based investment bank was bought by Commerzbank.

Commerzbank declined to comment on the departure.

END

Fast forward to today and we have this announcement...

Commerzbank to Slash Jobs, Scrap Dividend in Broad Revamp
German lender to cut 9,600 jobs as part of new CEO's plan to shrink the bank
http://www.wsj.com/articles/commerzbank-to-slash-jobs-scrap-dividend-in-broad-revamp-1475139832

FRANKFURT-- Commerzbank AG on Thursday said it plans a wide-ranging overhaul that includes laying off close to 10,000 jobs, or roughly 20% of its workforce, merging two large units and scrapping its dividend.

The plan, which aims to restore profitability and capital cushions by 2020, is new Chief Executive Martin Zielke's effort to shrink the partially state-owned bank in the face of historically low interest rates and weak client demand.

"The focus on the core business, with some business activities being discontinued, and the digitalization and automation of workflows will lead to staff reductions amounting to around 9,600 full-time positions," Germany's second-largest lender said.

The cuts were flagged by The Wall Street Journal and other media outlets in recent weeks, but their breadth surprised observers because Commerzbank almost one year ago indicated its remake was on course when former CEO Martin Blessing announced his resignation.

END

What? Everything and everybody slashed at once and they are calling it "a plan to restore profitability"??

HA!

This is the desperate act of a failing company that has to report massive 3rd quarter losses for their 3rd quarter which ends TOMORROW!!

The funny thing is that because Commerzbank a likely counterparty to many of the Deutsche Bank derivatives...commerzbank may be the mega-derivative holder that people blame for the derivative implosion.

To sum it up...It's ugly EVERYWHERE!

Roota Says "Shrink the Banking System"

Timing is everything when it comes to Greenspan giving interviews. Yes, Greenspan wants the system to implode and will say and do anything and everything to make it happen...

Greenspan Says He Would Like to See Dodd-Frank Bank Law Repealed
https://finance.yahoo.com/news/greenspan-says-see-dodd-frank-162025837.html

Former Federal Reserve Chairman Alan Greenspan said sweeping post-crisis reforms of the U.S. financial system haven't fixed the problem they were designed to tackle and should be scrapped, escalating his long-standing criticism of the 2010 Dodd-Frank Act.

"I don't think this bill is working at all and I would like to see it repealed," he told Bloomberg Television's David Westin in an interview Thursday from Washington. "But I must admit that the politics are such that that is called wishful thinking."

More from Bloomberg.com: Tiger Cub Citrone Sees Market in Biggest Correction Since 2008

U.S. Treasury Secretary Jacob J. Lew, in separate remarks on Thursday, said Dodd-Frank had made the financial industry safer. "It would be a mistake to roll back the clock on these protections," he said in testimony to Congress.

Greenspan's hands-off approach while he helmed the U.S. central bank was blamed by many critics for fostering conditions that incubated the global financial crisis. While Greenspan said in 2008 that his free-market ideology shunning regulation was flawed, he has for years been skeptical of Dodd-Frank, enacted after the turmoil to make banks stronger and subject to better oversight.

The 90-year-old Greenspan argued in a 2011 opinion piece in the Financial Times that Dodd-Frank could be shelved if banks held larger cushions of capital, and repeated that view on Thursday. Shrink the Banks

"I would actually go anywhere from 20 to 30 percent of assets for pure equity. I know everybody says that's going to shrink the banking system," he said. "It will to a certain extent. But the extent that it is, is for those loans you shouldn't have made in the first place."

END

Push, push, push them off the Cliff Roota!

European Bank Crisis is BACK!

And let's not forget about Italy...

Monte Paschi Rescue On The Rocks: Regulators Now "Expect Bank To Ask Italy For Bailout"
http://www.zerohedge.com/news/2016-09-22/monte-paschi-rescue-rocks-regulators-now-expect-bank-ask-italy-bailout

Monte dei Paschi faces a considerable challenge in convincing investors to back its third recapitalisation in as many years. Further complicating the picture, a constitutional referendum, expected to be held by early December that could decide the future of Renzi, is likely to push the bank's fund-raising into next year, the officials say.

The bank's fragile state poses a threat to confidence in other Italian lenders and even to heavily-indebted Italy, the euro zone's third-largest economy.

Renzi and his economy minister, Pier Carlo Padoan, have said in recent days Monte dei Paschi's capital raising will be successful. Sources close to the consortium of banks that have made a preliminary commitment to underwrite the 5 billion euro privately-backed cash call dismissed suggestions it may fall short as "nonsense."

Reopening the question of state support, which had already been explored and dropped because of the losses it requires for bondholders under European bank crisis rules, is politically charged, and would reignite a dispute between Italy and Germany.

Berlin had objected to Rome's efforts to back the struggling bank without imposing a loss on its bondholders, according to another senior official. But while some in the German government argue that Italian savers are wealthy enough to shoulder the bank's problems, Rome wants to spare both institutional investors and ordinary Italians who have tied up their money in its bonds at all costs.

Renzi's government fears that hitting bondholders would be extremely unpopular and could trigger a wider confidence crisis in the Italian banking system.

END

Europe is ground zero for the collapse. It will happen there first and then within days/weeks it will travel around the world.

Thrugelmir

AG47 wrote: »

You are asking the small question and missing the elephant in the room

Can the worlds financial system survive a too big to fail bank now failing

Again I repeat the failure of RBS was coped with seamlessly. What's actually new? Same scenario. What's different is the solution. That's down to politics and membership of the EU.

theEnd

Thrugelmir wrote: »

Again I repeat the failure of RBS was coped with seamlessly. What's actually new? Same scenario. What's different is the solution. That's down to politics and membership of the EU.

Plus, the banking industry is safer now. It won't be nice, but not sure anywhere near as bad as 2008.

Thrugelmir

EU fine Apple $14.5 billion

US fine DB $14 billion


:think:

AG47

theEnd wrote: »

Plus, the banking industry is safer now. It won't be nice, but not sure anywhere near as bad as 2008.

2008 would have been catastrophic without all the bailouts.

The question is will the world send for more bailouts again? I think no, the people will rise up and we will not stand for it.

Just look at the movie with Brad Pitt called the big short. The people will not stand for more bailouts this time.

Woby_Tide

AG47 wrote: »

Do not understand, where do your numbers come from?

Your posts seeing as you're the only one with accurate figures it seems