Deutsche Bank toxic derivative losses

Garethgrew

Deutsche Bank's derivative book was just ripped apart on Friday morning when the BREXIT vote came in. The derivatives related to FX currencies and European sovereign debt have been triggered and the settlement date will be mid-July.

It is all happening now so get yourself as far away from the markets as possible. Physical silver, physical gold and hard copy Bitcoin in your possession will be the ONLY answer to this problem.

AG47

12x worse than Lehman shock

Unavoidable now

Garethgrew

But in the meantime - here's more about the Deutsche Bank "problem"...

"Deutsche Bank Poses The Greatest Risk To The Global Financial System": IMF
http://www.zerohedge.com/news/2016-06-29/imf-deutsche-bank-poses-greatest-risk-global-financial-system

Over three years ago we wrote "At $72.8 Trillion, Presenting The Bank With The Biggest Derivative Exposure In The World" in which we introduced a bank few until then had imagined was the riskiest in the world.

As we explained then "the bank with the single largest derivative exposure is not located in the US at all, but in the heart of Europe, and its name, as some may have guessed by now, is Deutsche Bank. The amount in question? €55,605,039,000,000. Which, converted into USD at the current EURUSD exchange rate amounts to $72,842,601,090,000.... Or roughly $2 trillion more than JPMorgan's."

END

Currently DB's stock price is falling through the floor.

It is CLEAR as DAY that the game is almost over...and very few of us know it!

Garethgrew

The Brexit Excuse

The fallout from the BREXIT vote is incalculable. The European Banks that were teetering on the brink already have now been pushed FULL FORCE off the cliff and are in FREE FALL.

It will take only a matter of weeks to be seen by the entire world as the 2nd quarter earnings were already feared to be miserable...now they are unfathomable. The derivative settlements from the FX market crash last Friday usually takes about 3-4 weeks to pay off...and those payoffs will be huge! Watch for the crumbling of the internal pillars of stability to become very visible in mid July.

And this European Bank problem from the BREXIT HAS JUST STARTED!! Many other countries are lining up to get out of the EU as they see the Titanic sinking while the Band Plays On.

Oh, let's not forget about those EUROPEAN BANKS that use massive leverage and derivatives to play their games. Already Italy has tried to jump on the bailout band wagon and push through their NECESSARY banking bailout package only to be squashed by Germany...

The First Casualty Of Brexit: Italy Prepares €40 Billion Bank Bailout
http://www.zerohedge.com/news/2016-06-27/first-casualty-brexit-italy-prepares-%E2%82%AC40-billion-bank-bailout

Barely has the market had time to digest last week's Brexit vote by the UK, a vote which may never actually be implemented if the "sturm und drang" campaign unleashed by the EU and the ECB on UK capital markets succeeds in changing the mind of enough "Leavers" to the point that the entire referendum is called off and Boris Johnson never triggers the Article 50 clause, and already Europe's most financially troubled nation, Italy, is using Brexit as a pretext to unleash a €40 billion ($44 billion) bailout of its insolvent banks.

END

Followed up by this news...

Germany to Oppose Shielding Investors in Italian Bank Plan
http://www.bloomberg.com/news/articles/2016-06-29/germany-said-to-oppose-shielding-investors-in-italian-bank-plan

Germany opposes any attempt to shield investors from losses if Italy pushes ahead with plans to recapitalize lenders, according to a person with knowledge of the government's stance.

Chancellor Angela Merkel's government says that European Union rules on handling struggling banks should apply in any rescue effort, including forcing losses on shareholders and some creditors before public money can be injected, the person said, declining to be identified because the deliberations are private.

Prime Minister Matteo Renzi's government is considering measures that may inject as much as 40 billion euros ($44 billion) into banks, possibly by providing capital or pledging guarantees, said a person with knowledge of the talks. Italian media have reported that the government in Rome is pursuing a six-month waiver of EU state-aid rules, allowing it to shore up banks without forcing investors to share losses.

END

And the hits will keep coming all through the summer with no end in sight. The latest "problem" with the BREXIT is that the EU is !!!!ed at the UK and is demanding them to open their borders if they want ANY trade with Europe...

EU to Britain: No access to single market without migration
http://finance.yahoo.com/news/divisiong-confusion-eu-rethinks-future-without-britain-070306591--finance.html

BRUSSELS (AP) -- European Union leaders spelled out stark conditions for a new relationship with a departing Britain on Wednesday, warning that if British business wants to keep access to Europe's single market, the country must accept European workers, too.

The leaders produced no clear rehaul for their shaken union after an unusual and emotionally charged summit, but agreed they must make it more relevant to citizens and keep it from disintegrating after Britain's unprecedented vote to leave. The 27 remaining presidents, chancellors and prime ministers said they're "absolutely determined to remain united," EU Council President Donald Tusk said.

They met without British Prime Minister David Cameron, who left Brussels on Tuesday night without any clear divorce plan, fending off pressure for a quick exit and punting the complex departure negotiations to his successor. In Britain, nominations opened Wednesday for a new Conservative leader to replace him after his devastating political miscalculation in calling last week's referendum.

Other EU leaders warned the U.K. that if it wants to continue to enjoy the seamless single market after its departure, it would also have to accept that EU citizens can continue to enter Britain. That's the crux of the current tensions: Britain's "leave" vote hinged on concerns about migration from poorer EU countries.

This fight will get worse and worse as the EU implodes from within. They WANT to blame the BREXIT for this coming crash.

TrickyTree83

Surely if our negotiating team get wind of this it'll be a case of:

"Free trade with no freedom of movement or lets see how you get on without us, bye."

Garethgrew

adindas wrote: »

I wonder, what is the likelihood, the EU cease to exist, is there any serious analysis about this ??

As UK will be out from EU soon. The UK will be benefiting if the EU cease to exist. They would not have power to impose their rule like they would have had it as a collective power.

Breaking up the EU was always the plan, watch the last 2 mins of this clip to see the truth about Brexit

https://youtu.be/ZVYqB0uTKlE

AG47

Garethgrew wrote: »

Breaking up the EU was always the plan, watch the last 2 mins of this clip to see the truth about Brexit

https://youtu.be/ZVYqB0uTKlE

Wow that video should go viral, are you sure that wasn't just made last week and they all wore old clothes from the 80s

AG47

mっっjdんbshんdhdっっっhsjshxg

Leaving the Euro was always the plan by the Anglo American dominant world power

Malthusian

AG47 wrote: »

Wow that video should go viral, are you sure that wasn't just made last week and they all wore old clothes from the 80s

Yes Minister had tens of millions of viewers when it was broadcast in the 80s, among them Margaret Thatcher. It already did go viral, back when "going viral" meant actual people watching your video, not just spambots

AG47

Deutsche Bank CEO's Says "No New Capital Needed"...a Line Taken from Richard Fuld of Lehman Brothers!

Deutsche Bank's CEO John Cryan came out on Saturday and said to the world that DB will not need any capital increase for the "foreseeable future"...

Deutsche Bank CEO says No Need for Capital Increase
http://www.reuters.com/article/us-deutsche-bank-ceo-idUSKCN0ZI0A0

Deutsche Bank will not need a capital increase for the foreseeable future, its chief executive told German magazine Spiegel in an interview. "I believe we can build up our capital organically, which we unfortunately didn't do over many years," John Cryan was quoted as saying on Saturday.

END



Now why does that sound so familiar to me? Oh yeah...



"In 2008 in a conference call with investors, days before Lehman collapsed, Richard Fuld clearly stated to his shareholders that “no new capital was needed” and that “real estate and investments were properly valued”. Yet only five days later, Lehman filed for bankruptcy."


END

My question is:

"Why don't these CEO's go to jail after blatantly LYING to their investors?

Last month our friends over at Zerohedge summed up the Deutsche/Lehman similarities rather nicely...except DB is many, many times bigger than Lehman Brothers ever was!

Is Deutsche Bank the Next Lehman?
http://www.zerohedge.com/news/2015-06-12/deutsche-bank-next-lehman

Deutsche Bank is in desperate need of capital as lending partner after lending partner run away from the DB Derivative Time Bomb