Deutsche Bank toxic derivative losses

Malthusian

AG47 wrote: »

So many people do not understand leverage and derivatives.

Couldn't agree more.

The test of whose understanding of derivatives is correct is as follows: has Deutsche Bank collapsed under its supposed 50 trillion worth of derivative losses yet?

AG47

AG47 wrote: »

Could Germany handle a 50 Trillion loss if they do bail out DB?

Even if they take all the depositors and savers money from all accounts in all the main German banks for a bail in, it still would not be enough to cover the 50 trillion in toxic derivatives

Yes I know some of the toxic derivatives offset, and they take net derivatives it if one goes they all go.

If one counter party fails they all fail.

50 trillion comes right on the books, they cant just take the assets and not the liabilities,

Because the liabilities from that bank are other peoples assets.

Its easy, this is not rocket science.

Do you think Germany can take on the assets but not the liabilities?

Those liabilities are somebody else's assets? No?

How can you argue against this?

Malthusian

Why are you asking me about the terms of an imaginary bail-out that currently exists only in your head? It's your fantasy, you decide the terms.

Has DB collapsed yet?

AG47

I can't believe some are still doubting that DB is wobbling,

Thrugelmir

Malthusian wrote: »

Why are you asking me about the terms of an imaginary bail-out that currently exists only in your head? It's your fantasy, you decide the terms.

Has DB collapsed yet?

Rather like RBS. Appears to be buckling under the strain of it's historic issues.

cogito

AG47 wrote: »

I can't believe some are still doubting that DB is wobbling,

Nobody does but it's nothing to do with derivatives. Some people also believe that Frankfurt will replace London as a major financial centre when it doesn't have a half decent bank of its own. It will end up being an irrelevant local retail bank.

Thrugelmir

cogito wrote: »

Some people also believe that Frankfurt will replace London as a major financial centre when it doesn't have a half decent bank of its own. It will end up being an irrelevant local retail bank.

With increasing levels of technology where banks are located becomes less and less relevant. Transaction volume is also decreasing.

westernpromise

Thrugelmir wrote: »

With increasing levels of technology where banks are located becomes less and less relevant. Transaction volume is also decreasing.

Where they're located affects how they're regulated.

Thrugelmir

westernpromise wrote: »

Where they're located affects how they're regulated.

Basle III is global regulation.

AG47

Thrugelmir wrote: »

Rather like RBS. Appears to be buckling under the strain of it's historic issues.

Some here are still in denial, "DB is to big to fail"