Deutsche Bank toxic derivative losses

AG47

sann420 wrote: »

DEUTSCHE BANK IS TOO BIG TO FAIL THEREFORE IT WOULDNT BE ALLOWED TO. MARK MY WORDS IT WILL NOT FAIL LIKE LEHMAN.

There might actually be a time when DB stocks become good value investment

So was Lehman not too big to fail?

How on earth can DB be bailed out? They are not only too big to fail they are certainly too big to bail.

iantojones40

AG47 wrote: »

So was Lehman not too big to fail?

How on earth can DB be bailed out? They are not only too big to fail they are certainly too big to bail.

I'd like to agree with that, but not so super Mario has already said his "powers are limitless" (when it comes to printing money and bailing out banks)

System

Banks will be bailed in well before banks are bailed out. Please see the new banking regulations.

Garethgrew

Deutsche Bank Failing in Covering Up Criminal Actions in Silver Market

In April 2016 Deutsche Bank announced a settlement in a case involving gold and silver manipulation. Normally, these things are settled with a few million dollars passed back and forth between lawyers and regulators but this time it was different. This time they ADMITTED that they were guilty and AGREED to turn in their co-conspirators. They ADMITTED that they use private chat boards to collude and manipulate prices.

It's all here in the letter the plaintiffs sent to the judge...




I can read this section over and over again a million times...

"In addition to valuable monetary consideration, Deutsche Bank has also agreed to provide cooperation to plaintiffs, including the production of instant messages, and other electronic communications, as part of the settlement. In Plaintiff's estimation, the cooperation to be provided by Deutsche Bank will substantially assist Plaintiffs in the prosecution of their claims against the non-settling defendants."

Total admission of market rigging as the "instant messages and other electronic communications" are from Deutsche Bank and their co-conspirators.

You may be asking yourselves WHY is it taking so long for the other hammers to come down on the co-conspirators? New class action lawsuits, investigations by the CFTC and the Justice Department. All of it is in the open for all to see.

The answer to that may be as simple as this...

Blowing the lid off gold and silver market manipulation would DESTROY the markets instantly!

It's true. Then where do we go? If it was announced it may be used as the scapegoat for the banksters getting away with their other criminal acts.

So it's been delayed while the rest of the mess is slowly but surely piling up for our firends over at Deutsche Bank...

Unprepared at Deutsche Bank for Doomsday, Feds Say
http://www.courthousenews.com/2016/08/22/unprepared-at-deutsche-bank-for-doomsday-feds-say.htm

"U.S. regulators cracked the whip on Deutsche Bank over a five-day systems outage, saying the beleaguered German lender is supposed to be prepared for such disasters."

"Deutsche Bank's swap-data-reporting system crashed four months ago on April 16. "Filing suit Thursday in Manhattan, the Commodity Futures Trading Commission says "Deutsche Bank's subsequent efforts to end the system outage repeatedly exacerbated existing reporting problems and often led to the discovery or creation of new reporting problems, many of which violate a previous CFTC order."

"Tens of thousands of futures swap messages remain unreported due to the technical malfunction, regulators say."

"Tens of thousands of futures swap messages remain unreported due to the technical malfunction, regulators say. The CFTC wants a federal judge to install a monitor who will ensure the bank's compliance with reporting requirements. It also wants $140,000 for each violation."

"CFTC Director of Enforcement Aitan Goelman said in a statement: "Deutsche Bank's repeated violations warrant the intervention of a Court-appointed monitor. Deutsche Bank has shown over the last year its inability to comply with its swap reporting responsibilities under the Commodity Exchange Act and CFTC Regulations. The CFTC treats these failures seriously and will take appropriate steps to ensure compliance."

END

Why A Deutsche Bank Whistleblower Turned Down A $8.25 Million Reward: In His Own Words
http://www.zerohedge.com/news/2016-08-18/why-deutsche-bank-whistleblower-turned-down-825-million-award-his-own-words

There was just one problem: when it was building up its portfolio, Deutsche never accounted for the possibility of the financial world nearly collapsing. Which is why as the illiquid portfolio was careening, instead marking it to market - an act that would have resulted in the bank's insolvency - DB's risk managers misstated the value of the positions by anywhere from $1.5bn to $3.3bn.

Several years later, in 2012, the SEC found out about this, and in 2015 slapped a $55 million fine on Deutsche Bank for this criminal fabrication (nobody went to jail). "At the height of the financial crisis, Deutsche Bank's financial statements did not reflect the significant risk in these large, complex illiquid positions," said Andrew Ceresney, director of the SEC's enforcement division. "Deutsche Bank failed to make reasonable judgments when valuing its positions and lacked robust internal controls over financial reporting."

The reason why the SEC learned about DB's massive mismarked derivative exposure, is because two former employee whistleblowers, Matthew Simpson and Eric Ben-Artzi, told it: the duo alleged that if Deutsche had accounted properly for its positions, its capital would have fallen to dangerous levels during the financial crisis and it might have required a government bailout to survive. The highest estimate for the unaccounted loss was $12bn. Which explains why Deutsche Bank was desperate to manipulated the numbers.

END

Deutsche Bank's $10 Billion Scandal
http://www.newyorker.com/magazine/2016/08/29/deutsche-banks-10-billion-scandal

How a scheme to help Russians secretly funnel money offshore unravelled.

END

Need I go on? When I said that the banks are running a criminal enterprise I was not exaggerating.

And the cherry on top - Deutsche Bank is blaming the ECB for their contracting "sudden death syndrome!"...

Deutsche Bank chief lashes out at ECB
http://www.dw.com/en/deutsche-bank-chief-lashes-out-at-ecb/a-19498447

The head of Germany's largest bank has warned of the "fatal consequences" of the European Central Bank's ultra-loose monetary policy. Low rates are hurting savers and retirees, he said.

END

Now let's noodle this out. Deutsche Bank is the largest derivative holder by far and the largest holder of INTEREST RATE derivatives. Of DB's 55 Trillion Euro Derivative exposure 45 TRILLION of that is bets on INTEREST RATES!!




No wonder Deutsche Bank is calling the ECB out for keeping rates too low...THEY HAVE A MAJOR BET ON RATES GOING THE OTHER WAY!!!

YES - Deutsche Banks problems are "fatal" but it will be a self-inflicted wound that will kill them not the action of the ECB.

Thrugelmir

mrlegend123 wrote: »

Banks will be bailed in well before banks are bailed out. Please see the new banking regulations.

Hence why Basle III has been intentionally phased in over a long period. The contraction of the banking system, Government austerity in the West and consumer debt was the topic of the G10 summit in May 2010. In summary was agreed that the medicine couldn't be too severe as the patients couldn't cope with a sudden adjustment. Had to be cold turkey.

Electrum

:rotfl::rotfl:That letter is amazing, they are basically saying can we have a lighter punishment if we grass on the other criminals....... WOW

JPMorgan must be shaking in their pants. How long before the regulators are held accountable too? They had a four year investigation and said silver was fairly traded, HAHAHAHA:rotfl::rotfl::rotfl:

Its like when the police are informed of some criminal child molesters, and some of the victims come forward and tell on their molesters. The police do a big investigation and come back and say no crime has been committed.

Then some in the child molesting group come forward and admit they were involved in the ring and ask for a lighter punishment if they give info on all the other child molesters.

The police should be held accountable for the four year investigation where they said no crime had been comited.

The regulators said no crime has been commited and the crime in the silver market is still ongoing, even after one of the criminals has admitted it!:mad:

Thrugelmir

Seems as if Portuguese banks are coming back under the spotlight. Though they were excluded from recent ECB stress tests.

As usual the EU rules are being bent so that the bail out isn't classified as State aid. Though appears private investors aren't queuing up to participate in the bail out.

Portugal is preparing to bail out its biggest bank by assets Caixa Geral de Depositos (CGD) which is currently ailing due to bad loans. The European Commission and Portugal have agreed to inject up to €5 billion to rescue CGD.
The sum will include a €2.7 billion recapitalisation provision, selling €1 billion in subordinated debt to private investors and converting €960 million of contingent convertible (CoCo) bonds into equity, Russia Today reported.

Portugal has been discussing the deal with the European Union so the injection would not be considered as state aid and therefore would not become subject to the budget deficit. Portugal has vowed to slash the budget deficit to 2.5 percent of GDP in 2016 from last year's 4.5 percent.

"This is an innovative deal in Europe...This is good news not only for CGD but for the whole Portuguese banking system," Finance Minister Mario Centeno said. The recapitalisation will be "in line with market conditions,"

“The Commission’s analysis is that the recapitalisation takes place on market terms, since the expected return for the state is sufficiently high and are in line with what a private investor would have accepted,” the bank said in a statement, stressing that the injection won’t count as state aid.

Portugal has already rescued two banks through similar schemes in 2014 and 2015.

Since 2008, Portuguese authorities have injected €10 billion to four other non-state banks. The country’s financial sector has been blamed for poor lending practices and unpaid loans. Portugal also needed a €78 billion bailout in 2011 during the Eurozone crisis.

michaels

Thrugelmir wrote: »

Seems as if Portuguese banks are coming back under the spotlight. Though they were excluded from recent ECB stress tests.

As usual the EU rules are being bent so that the bail out isn't classified as State aid. Though appears private investors aren't queuing up to participate in the bail out.

Because after all Govts have such a good track record of getting back all the money they use to prop up bad banks (see for example RBS, Lloyds). It seems odd given that it is such a good deal that the govt is having to pony up the readies rather than the private sector - in fact given it is such a win-win investment perhaps I will remortgage and invest the proceeds in Caixa Geral de Depositos (CGD) bonds

Garethgrew

michaels wrote: »

Because after all Govts have such a good track record of getting back all the money they use to prop up bad banks (see for example RBS, Lloyds). It seems odd given that it is such a good deal that the govt is having to pony up the readies rather than the private sector - in fact given it is such a win-win investment perhaps I will remortgage and invest the proceeds in Caixa Geral de Depositos (CGD) bonds

DB is one of the too big to fails, if they go down the entire worlds financial system goes down. But they are also to big to bail. €75 Trillion with T, that's trillion not Billion in toxic derivative losses.

Ten of trillions were bet on oil and then it went the wrong way, they also bet the wrong way that the uk would leave the EU, well everybody did, we were all surprised about that.

€45 trillion of that was loss on betting in the interest rates casino, they bet ir's would go up, and now they are going down every bellow zero. Ouch!

What a crazy system, it's almost as if somebody somewhere wants the entire financial system to collapse.

Thrugelmir

michaels wrote: »

Because after all Govts have such a good track record of getting back all the money they use to prop up bad banks (see for example RBS, Lloyds).

RBS was in the same category as DB. Would have caused global financial distress on a major scale.

Lloyds shareholders paid the price for the shot gun marriage with HBOS not the taxpayer. If the PPI issue had been foreseen I suspect HBOS would have been nationalised. Would be in the same boat as RBS today. Slowly contracting in size back to it's regional roots as a bit player.