Deutsche Bank toxic derivative losses

Thrugelmir

AG47 wrote: »

Wiki leaks are said to reveal the true toxic derivatives losses of the once mighty DB.

Is that anytime soon?

AG47

Just out of interest, does anybody think DB can be saved from this mess? If so how?

Thrugelmir

That question was answered a long time back in this thread.

AG47

The only two options to survive are either another bailout, aka 2008, or this time a bail in. Using depositors funds to pay off their losses.

So many people around the world think it was a mistake to give so much of tax payer money to reward irresponible bankers in 2008, it's not looking likely this time.

But if no bail out, then another bail in could well cause bank runs all around the world.

So the other option is just let DB fail, another Lehman shock but 12x larger.

wotsthat

AG47 wrote: »

The only two options to survive are either another bailout, aka 2008, or this time a bail in. Using depositors funds to pay off their losses.

So many people around the world think it was a mistake to give so much of tax payer money to reward irresponible bankers in 2008, it's not looking likely this time.

But if no bail out, then another bail in could well cause bank runs all around the world.

So the other option is just let DB fail, another Lehman shock but 12x larger.

I can't see the upside of worldwide bank runs and DB being 12x Lehman's.

What do you think you have to gain?

Thrugelmir

AG47 wrote: »

The only two options to survive are either another bailout, aka 2008, or this time a bail in. Using depositors funds to pay off their losses.

So many people around the world think it was a mistake to give so much of tax payer money to reward irresponible bankers in 2008, it's not looking likely this time.

But if no bail out, then another bail in could well cause bank runs all around the world.

So the other option is just let DB fail, another Lehman shock but 12x larger.

After 295 posts why are we back at the beginning again? DB will survive in some guise. That's a fact.

theEnd

And how is a bail-in that different to the haircuts applied in the past?

Didn't stop anyone investing, they just got more careful where they invest and what returns were required. Exactly how things should work.

DB might end up needing a bail-in or bail-out. More likely, they just need to restructure (reduce/merge) their entire business and/or get some external investment.

Thrugelmir

theEnd wrote: »

More likely, they just need to restructure (reduce/merge) their entire business and/or get some external investment.

Which they've been doing for a while and no doubt will continue to do.

AG47

wotsthat wrote: »

I can't see the upside of worldwide bank runs and DB being 12x Lehman's.

What do you think you have to gain?

I'm buying silver bullion while it's still so artificially cheap, I'm happy to just watch and wait for the vale of silver to correct to the long term norm.:T

AG47

Thrugelmir wrote: »

DB will survive in some guise. That's a fact.

Layman could have, but it didn't and DB has much greater toxic derivative losses, around 12 times worse.