Deutsche Bank toxic derivative losses

Thrugelmir

AG47 wrote: »

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

Have you seen the new Ben Hur yet? The original lasted a lot lot longer with a lot more story.

AG47

http://www.zerohedge.com/news/2016-09-29/run-begins-deutsche-bank-hedge-fund-clients-cut-collateral-exposure

Deutsche Bank concerns just went to '11' as Bloomberg reports a number of funds that clear derivatives trades with Deutsche Bank AG have withdrawn some excess cash and positions held at the lender, a sign of counterparties’ mounting concerns about doing business with Europe’s largest investment bank.

While the vast majority of Deutsche Bank’s more than 200 derivatives-clearing clients have made no changes, some funds that use the bank’s prime brokerage service have moved part of their listed derivatives holdings to other firms this week, according to an internal bank document seen by Bloomberg News.

mwpt

Do you think this time the prediction of doom are correct? Or will you move on to the next one if nothing significant happens? People on here have predicted 37 of the last 1 bank failures.

AG47

mwpt wrote: »

Do you think this time the prediction of doom are correct? Or will you move on to the next one if nothing significant happens? People on here have predicted 37 of the last 1 bank failures.

IT will be different this time, DB is the largest derivative holder, and if they collapse on the losing derivatives then those on the other side of the bet will lose as well because DB can't afford their 10,000:1 leveraged toxic bets that they lost.

That's why this time it's different, if DB fails then the entire electronic banking system around the globe will fail. And guess what? DB is failing:T

theEnd

AG47 wrote: »

DB is the largest derivative holder, and if they collapse on the losing derivatives then those on the other side of the bet will lose as well because DB can't afford their 10,000:1 leveraged toxic bets that they lost.

That's a complete misunderstanding of derivatives and DB's problems.

AG47

Germany will never ever do a bail out, the culture just would not stand for it.

The real fear now is a bail in.

That's why smart German people are pulling all their funds out of DB, so they don't get left holding the bag.

AG47

theEnd wrote: »

That's a complete misunderstanding of derivatives and DB's problems.

Please explain where I'm wrong?

ukcarper

AG47 wrote: »

IT will be different this time, DB is the largest derivative holder, and if they collapse on the losing derivatives then those on the other side of the bet will lose as well because DB can't afford their 10,000:1 leveraged toxic bets that they lost.

That's why this time it's different, if DB fails then the entire electronic banking system around the globe will fail. And guess what? DB is failing:T

I don't know if what you are saying is right or wrong but what I can't understand why you are clapping what if you are correct will damage the economy of Europe and harm thousands of people.

gagahouse

AG47 wrote: »

Please explain where I'm wrong?

It would take too long and be beyond your capacity for understanding. The fact you constantly quote gross notional totals as 'exposures' which are not net exposures proves you have zero understanding of how derivatives work, what type of derivatives exist or what regulators have done since 2008 to avoid another AIG counterparty contagion failure.

You also seem to believe the govt and central banks will do the opposite of what they've always done in these situations which is to bail out the SIFI's no matter what and not repeat the mistake of 2008 by letting Lehman's burn.

Would DB going down be bad? Yes. Would it lead to Armageddon? Complete fantasy.

michaels

ukcarper wrote: »

I don't know if what you are saying is right or wrong but what I can't understand why you are clapping what if you are correct will damage the economy of Europe and harm thousands of people.

I guess after Greece it is a question of whether the Germans have a word for Schadenfreude?