Deutsche Bank toxic derivative losses

Thrugelmir

pop_gun wrote: »

The U.S. petrodollar status is waning and it won't back it's currency with gold.

The US is self sufficient in sweet crude. An enviable position to be in.Putting huge pressure on Saudi Arabia. As rather importing SA product the US is now exporting. The world order is changing after 40 years of dominance. OPEC is in disarray. Every country to itself it seems.

AG47

Thrugelmir wrote: »

The US is self sufficient in sweet crude. An enviable position to be in.Putting huge pressure on Saudi Arabia. As rather importing SA product the US is now exporting. The world order is changing after 40 years of dominance. OPEC is in disarray. Every country to itself it seems.

There is far more oil than we are told.

pop_gun

AG47 wrote: »

What does he say about DB collapsing, will they bail in? If they do how can a global run on the banks be prevented? If they don't then what other options are there, how can they default on their derivative losses?

Unfortunately he doesn't mention DB in that interview.

As you pointed out DB is too big to fail. Although it won't be just Germany riding to the rescue, when the time comes.

pop_gun

Thrugelmir wrote: »

The US is self sufficient in sweet crude. An enviable position to be in.Putting huge pressure on Saudi Arabia. As rather importing SA product the US is now exporting. The world order is changing after 40 years of dominance. OPEC is in disarray. Every country to itself it seems.

When the U.S. took Iraq it pumped a lot of it's oil into depleted U.S. oil wells. A quick google search has U.S. oil production at 8.5 million barrels a day. Which is hard to believe given U.S. production has been in decline since the 1970's. The U.S. is, no doubt, overstating it's numbers. In much the same way Saudi Arabia does it's reserves.

The U.S. consumes 25 million barrels a day. Which makes you wonder why they're exporting the stuff.

Thrugelmir

pop_gun wrote: »

Which is hard to believe given U.S. production has been in decline since the 1970's.

US was only producing 7 million bpd in 1992. This figure wasn't reached again until Nov/Dec 2012. Hardly a decline. Now around 8.5 million bpd. If the price is right it's there to be pumped.

pop_gun

Thrugelmir wrote: »

US was only producing 7 million bpd in 1992. This figure wasn't reached again until Nov/Dec 2012. Hardly a decline. Now around 8.5 million bpd. If the price is right it's there to be pumped.

So what you're saying is U.S. oil production rose after the first gulf war and the invasion of Libya.

hmmm.. that's interesting.

Out,_Vile_Jelly

So has there been a financial Armageddon yet, or is it still just a series of portentous ramblings by excitable bloggers?

Sapphire

Oh, dear…

The inevitable is drawing closer, I fear. World economies (and individuals) cannot survive forever on huge mountains of debt, surely…

Thrugelmir

pop_gun wrote: »

So what you're saying is U.S. oil production rose after the first gulf war and the invasion of Libya.

hmmm.. that's interesting.

Yeah it's called shale.............:cool:

AG47

10/10/2016 Update: DB = No Deal and Problems Intensify

Deutsche Bank's stock price was "saved" at the end of the 3rd quarter by rumors that they have secured a settlement with the US Department of Justice for around $5B. After bottoming at around 9.90 Euro the stock zoomed back above 10.00 euro and is currently trading around 12.30 Euro...all on a rumor.

During this time Deutsche Bank was able to raise $3B in a bond offering announced on Friday after the close. This time the "spin line" of the fund raising was not that they desperately needed the money but rather it was the INVESTORS that had begged Deutsche Bank for the higher yielding bonds!!

Deutsche Bank sells $3 billion bond as investors seek spread
http://www.reuters.com/article/us-deutsche-bank-bond-bonds-idUSKCN1280MN

NEW YORK (IFR) - Deutsche Bank issued its first US dollar-denominated bond in five months on Friday when its raised $3 billion through a five-year issue following reverse enquiry from investors, a person close to the deal told IFR.

The senior unsecured bond priced just below par with a coupon of 4.25% and at a spread of 300bp over Treasuries.

The bond is the first sold by Deutsche Bank in the US dollar market since May when it raised $3.6 billion from three and five-year debt, and follows a sharp widening in its spreads.

END

You really can't make this stuff up!

Now that the purpose of the "deal rumor" is complete it's time to get back to reality...

Deutsche Bank fails to score Justice Dept. deal, shares fall
http://www.reuters.com/article/us-germany-deutsche-bank-stocks-idUSKCN12A0LS

Deutsche Bank (DBKGn.DE) shares fell more than 3 percent on Monday after Chief Executive John Cryan failed to secure a speedy deal with the U.S. Department of Justice (DoJ) over the weekend over the misselling of mortgage-backed securities.

Cryan was attending the International Monetary Fund and World Bank's autumn meetings in Washington, raising hopes that he might personally negotiate down the $14 billion fine the DoJ has demanded.

"One had hoped that a quick agreement was possible," a German trader said.

By 0818 GMT, Deutsche Bank shares had pared losses but were still at the bottom of a flat German blue-chip index .GDAXI, down 3 percent at 11.74 euros.

"They had a bit of a bounce up last week, but I would still steer clear of Deutsche Bank," said Terry Torrison, managing director at Monaco-based McLaren Securities.

"They were never going to sort out the U.S. issues that quickly, and whatever happens, I still think they will need to have a rights issue."

Deutsche Bank is expected to issue new shares, sell assets, or both, once it knows the scale of the fine, to ensure that its capital ratio remains within regulatory limits.

END

Right back to where we should have been at the end of the 3rd quarter.

But that's not all. Word that Deutsche Bank was given "special treatment" during the ECB Stress Test is now being reported by the Financial Times...

Deutsche Bank was given special treatment in EU stress tests
https://www.ft.com/content/44768ea8-8c71-11e6-8aa5-f79f5696c731

German lender's result was boosted by a special concession agreed by the European Central Bank.

Germany's biggest lender, which has seen its share price fall as much as 22 per cent in recent weeks on fears that it could face a US fine of up to $14bn, has been using the results of the July stress tests as evidence of its healthy finances.

But the Financial Times has learnt that Deutsche's result was boosted by a special concession agreed by its supervisor, the European Central Bank.

Deutsche's results included the $4bn proceeds from selling its stake in Chinese lender Hua Xia even though the deal had not been done by the end of 2015, the official cut-off point for transactions to be included.

The Hua Xia sale was agreed in December 2015. It has still not been completed and now faces a delay after missing a regulatory deadline last month, though the bank is still confident of completion this year.

END

So the take down of the world's largest derivative holder continues as we await "the day" that they announce that Deutsche Bank is insolvent and it's 2008 all over again.

But this time THERE WILL BE NO BAILOUT OF THE BANKSTERS!!

10/6/2016 Update: New Deutsche Bank Problems

After a few days of rest and recuperation for Deutsche Bank with MSM press-tatutes saying their tailspin is recoverable, there is more and more news of additional fraud being exposed. This is a very fertile area for the Good Guys to take down this criminal bank and they can bring more and more of this kind of criminality whenever they want...

The Latest Deutsche Bank Scandal Reeks On Enron: 103 "Enhanced Repo" Deals To Make Loans "Disappear"
http://www.zerohedge.com/news/2016-10-06/latest-deutsche-bank-scandal-reeks-enron-103-enhanced-repo-deals-make-loans-disappea

I am shocked, shocked, absolutely shocked, to read on Bloomberg this morning that Deutsche Bank has been indicted for colluding with Monte di Busti for concealing losses, mismarking books and the rest. And guess what? Germany's premier bank has been doing much the same for a raft of other clients -- arranging over 100 deals for 30 clients that allowed them to pass off loans as derivatives. In view of the questions around DB's own derivatives book.. nope I won't go there.

Are we surprised? Frankly we are not.

END

I believe the stock price has already bottomed for the time being as it dipped below the 10 Euro price on the last day of the quarter on Friday which I think may have triggers some of the COCO bond conversions they needed to"paint the tape" on Q3. No news in the press about that yet though.

You must see by now that this is a planned and orchestrated Take Down by the Good Guys and there will be no White Knight coming to aid DB in the end. The US controllers are making sure of that and THEY were the one's that started the ball rolling with the $14B fine levied against the world's most systemically weak bank!!

Now we wait for S&P to downgrade DB and put the final nail in the coffin.