Deutsche Bank toxic derivative losses

Crashy_Time

Thrugelmir wrote: »

DB's balance sheet is far smaller than RBS when it crashed.

Three German banks are in trouble though?

AG47

No confirmation on this yet but I was watching for the DB stock to drop below 10 Euros and it looks like it bottomed out today at 9.90 Euros before heading back up. Remember, we are at the end of the 3rd quarter and Deutsche Bank needed Tier 1 Capital desperately.

If their COCO Bonds automatically converted to Common Shares when the stock price breached 10 Euro then they may have added up to 5B Euros in new equity to their balance sheet while wiping out the 100% of the COCO bond holders.

I haven't heard anything yet but it's a long 3 day weekend in Germany for the banks and anything can happen.

As predicted... the US Justice Department has NOT confirmed the settlement rumor of $5.4B and word coming out now is that DB would be required to report this number if it were true...and they have NOT said a WORD!

Who would have guessed the Twitter rumor was just a head fake?! HA!!

And S&P still has a downgrade pending for Deutsche Bank and they won't embarrass themselves again as they did in 2008.

Man can it get ugly fast if ANY of these items come to pass.

Stay tuned.

Thrugelmir

AG47 wrote: »

Stay tuned.

Ok. Will do.

armageddon has been postponed for a further 3 days. Phew.

AG47

Thrugelmir wrote: »

Ok. Will do.

armageddon has been postponed for a further 3 days. Phew.

Note: The failure of Deutsche Bank would be the largest of the Too-Big-To-Fail banks and would destroy everything electronic in a matter of days. For this reason many people are saying that the German/US Governments and Central Banks would not allow that to happen. I think the exact opposite: They are FORCING it to happen!!

Buckle up!!

theEnd

AG47 wrote: »

and would destroy everything electronic in a matter of days.

Eh? DB failing would be nowhere near as bad as 2008.

It wouldn't be great, but the chances are still low.

More likely a very quick restructure and downsize. A long slow demise.

Thrugelmir

theEnd wrote: »

Eh? DB failing would be nowhere near as bad as 2008.

It wouldn't be great, but the chances are still low.

More likely a very quick restructure and downsize. A long slow demise.

Would give Germany no international bank. Not helpful if they wish to take away Financial Services from London.

theEnd

Thrugelmir wrote: »

Would give Germany no international bank. Not helpful if they wish to take away Financial Services from London.

As per London, I'm not sure the nationality of the bank means much anymore.

AG47

There should be no doubt in anyone's mind that the Official Take Down of the Global Monetary System has kicked into OVERDRIVE!!

Even the government and regulators are doing their part to destroy the system!!

Deutsche Bank, Paschi, Numora Staff Charged Over False Accounts
http://www.bloomberg.com/news/articles/2016-10-01/deutsche-bank-paschi-nomura-staff-charged-over-false-accounts-itr5z2ku

"Six current and former managers of Deutsche Bank AG -- including Michele Faissola, Michele Foresti and Ivor Dunbar -- along with two former executives at Nomura Holdings Inc. and five at Banca Monte dei Paschi di Siena SpA were charged in Milan for colluding to falsify the accounts of Italy’s third-biggest bank and manipulate the market."

END

This couldn't happen at a WORSE time for the world's largest derivative holder.

And there will be more "bad news" soon.

AG47

The DB debacle reminds me of the film Wall Street money never sleeps.

The one bank is singled out and everybody is picking on them, the head guy at the bank ends up committing suicide in front of a train. But before then he says something about your asking the wrong question when the young guy asks him if the bank can survive, his answer is, can anybody else survive either?

Thrugelmir

theEnd wrote: »

As per London, I'm not sure the nationality of the bank means much anymore.

The extent of it's network does.