Deutsche Bank toxic derivative losses

theEnd

This is getting silly. You really believe that DB are sat on unrealised derivative losses of multiples of the GDP of America and no-one's bothering with margin calls and are still happy to trade with them?

In truth, their current losses are probably in the single digit billions (still massive). Their exposure (as in their potential future risk) to certain derivatives under certain conditions is what's failing the stress tests and they need to unwind.

The large numbers mentioned (tens of trillions+) are sums of notionals. Meaningless without other details of the trades.

Thrugelmir

theEnd wrote: »

This is getting silly. You really believe that DB are sat on unrealised derivative losses of multiples of the GDP of America and no-one's bothering with margin calls and are still happy to trade with them?

In truth, their current losses are probably in the single digit billions (still massive). Their exposure (as in their potential future risk) to certain derivatives under certain conditions is what's failing the stress tests and they need to unwind.

The large numbers mentioned (tens of trillions+) are sums of notionals. Meaningless without other details of the trades.

And the company auditors are prepared to off sign year end accounts without qualification.......

Garethgrew

A loss is a loss, you can kick the can but you can't do that forever

Thrugelmir

Garethgrew wrote: »

A loss is a loss, you can kick the can but you can't do that forever

You can however continue to build Tier 1 Capital reserves while at the same time progressively reducing the net exposure.

Electrum

Thrugelmir wrote: »

You can however continue to build Tier 1 Capital reserves while at the same time progressively reducing the net exposure.

Are you trying to say there is hope for DB? They can actually come out ahead? :rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

Electrum

DB have now defaulted on paper promises to deliver physical gold and silver.

http://www.zerohedge.com/news/2016-09-01/xetra-golds-responds-deutsche-banks-failure-deliver-physical-gold

Thrugelmir

Electrum wrote: »

Are you trying to say there is hope for DB? They can actually come out ahead? :rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

More likely a lingering decline like RBS........with Governmental support possibly. Some banks are too important to their own internal economies to fail.

AG47

Thrugelmir wrote: »

More likely a lingering decline like RBS........with Governmental support possibly. Some banks are too important to their own internal economies to fail.

Yes that's why this is one of the biggest stories in the world right now, Germany is supposed to be the breadbasket of Europe. If DB goes down Germany goes down.

And what about all the winners to the €75 trillion derivatives losses? If they can't be paid then that's another €75 trillion losses on top of DBs toxic losses.

This will have ripple effects around the entire world eventually causing the long awaited global fin ial crash.

gagahouse

theEnd wrote: »

This is getting silly. You really believe that DB are sat on unrealised derivative losses of multiples of the GDP of America and no-one's bothering with margin calls and are still happy to trade with them?

In truth, their current losses are probably in the single digit billions (still massive). Their exposure (as in their potential future risk) to certain derivatives under certain conditions is what's failing the stress tests and they need to unwind.

The large numbers mentioned (tens of trillions+) are sums of notionals. Meaningless without other details of the trades.

Thank you, the notionals are meaningless, they do not become nominal losses. Over 90% of derivatives äre interest rate swaps mostly created to offer fixed rate mortgages with bank short term borrowings hence the huge numbers.

All derivatives by 2018 must be centrally cleared eliminating counterparty risk and many trillions already are since being mandated in the US in 2013 and Europe 2016.

So fears of a Db failure generating a 75 trillion loss somewhere in the world are well overblown.

AG47

Deutsche Bank on Death Watch - Roota's Timing Couldn't Be Better!

News that the US Justice Department is asking for $14B from Deutsche Bank has sent the already wobbly derivative bank into free fall mode!

Deutsche Bonds "Dropping Like A Stone" As 'Most Dangerous Bank In The World' Plummets
http://www.zerohedge.com/news/2016-09-16/deutsche-bonds-dropping-stone-most-dangerous-bank-world-plummets

"Deutsche Bank AG's riskiest bonds plummeted after the German lender received a $14 billion claim from the U.S. Justice Department to settle an investigation into the firm's sale of residential mortgage-backed securities."

"They are dropping like a stone," said Tomas Kinmonth, a credit strategist at ABN Amro Bank NV in Amsterdam. "The fine, even if reduced, could surpass all provisions held by the bank

"They are dropping like a stone," warns one European credit strategist as signals from the bottom of Deutsche Bank's capital structure signal a "huge increase in the potential for a coupon skip."

"With DB stock tumbling towards record lows again..."

"Back to an EUR11 handle...biggest drop since Brexit"

"Bloomberg reports, the bank's 1.75 billion euros ($2 billion) of 6% additional Tier 1 bonds, the first notes to take losses in a crisis, are crashing... as the world's most systemically dangerous bank faces existential problems once again."

END

So what was Deutsche Bank's response to the Justice Department's settlement offer..."HELL NO! Not even close to $14B!"

Deutsche Bank Rebuffs U.S. Over $14 Billion Mortgage Settlement
http://www.bloomberg.com/news/articles/2016-09-15/deutsche-bank-asked-to-pay-14-billion-in-u-s-probe-wsj-says

Deutsche Bank AG said it won't pay the $14 billion sought by the U.S. Justice Department to settle an investigation into the firm's sale of residential mortgage-backed securities, a figure that's more than triple what some analysts estimated could be a potential worst-case.

"Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited," the company said in a statement early Friday in Frankfurt. "The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts."

Germany's largest lender confirmed that it had started negotiations with the Justice Department to settle civil claims the U.S. may consider over the bank's issuing and underwriting of residential mortgage-backed securities from 2005 to 2007. The $14 billion is considered an "opening bid" that could go "much lower," according to the Wall Street Journal, which reported the figure shortly before Deutsche Bank issued its statement.

END

Ok. So DB is now at war with the US market manipulation machine.

Here's where Roota's Power shines!!

With a click of a mouse the market rigging programs controlled by the US and executed out of the basement of the US Treasury and the NY Fed can destroy any bank, any currency or any nation.

A CLICK OF A MOUSE!

That's the power of the computer controlled game and that's the power that Deutsche Bank has to confront in this battle.

Good luck with that DB.

Don't !!!! Roota off!!

Bitcoin Poised For "Moonshot"

It's now or never to buy your Bitcoin under $1,000/BTC. I can give you 100 reasons why Bitcoin is about to blow sky high but here's one that wasn't even on my radar...

Why the First Bitcoin ETF Could Double the Price of Bitcoin
http://moneymorning.com/2016/09/09/why-the-first-bitcoin-etf-could-double-the-price-of-bitcoin/

The arrival of the first Bitcoin ETF will have a bigger impact on the Bitcoin price than even most of the digital currency's supporters suspect.

And that moment isn't far away. The Winklevoss Bitcoin Trust (BATS: COIN) exchange-traded fund is in the final stages of its SEC approval process.

While it's still possible the SEC will reject the Winklevoss Bitcoin ETF, it's far more likely it will be approved. And the SEC must rule one way or the other by March 2017.

Most of the Bitcoin community has assumed the approval of the first Bitcoin ETF will be a positive for the price of Bitcoin. That's because it will add to the legitimacy of the digital currency in addition to providing a new avenue for people to invest in Bitcoin.

But the history of other commodity-based ETFs suggests this event will be a major catalyst.

In the early-to-mid 2000s, ETFs launched for a wide range of commodities, including gold, silver, platinum, copper, oil, and natural gas. In just about every case, the price of the underlying commodity shot up in the years following the debut of ETFs based on that commodity.

So once the Winklevoss Bitcoin Trust launches, it will need to purchase Bitcoin to back the shares it has sold to investors. This fresh inflow of capital will kick the price of Bitcoin higher.

That's what happened with both gold and silver when those ETFs debuted more than a decade ago.

"Retail and equity investors, who wouldn't or couldn't go direct to the commodity markets, were prepared to invest in these vehicles. That in turn sucked physical commodity, used to back the ETFs, out of the markets in question, leading to price appreciation," wrote Daniel Masters, director of the UK-based Global Advisors Bitcoin Investment hedge fund, in a blog post last month. Masters also served for six years as the global head of energy trading for JPMorgan Chase & Co.

END

I cannot emphasis enough the role that Bitcoin and the Blockchain will play in both the transition out of the Bad Guys system and the introduction of all new monetary systems.

Bitcoin is part of the SOLUTION and NOBODY is aware of it in the mainstream...

NOBODY!!

This is a "Once in a Lifetime" chance to change your financial stars!