“Deutsche Bank has built a pyramid the size of 70 trillion euros. And the day when the Bank will go bankrupt and will spell the downfall of the European Union, is rapidly approaching…
It is possible that the consequences of the Russian sanctions became the feather that broke the back “of the financial camels of the European Union…
Less than six months since we wrotethat “Deutsche Bank” has a big problem, and it is finally recognized by the IMF.
A few days ago in his next report, the international monetary Fund stated that “Deutsche Bank is one of the global systemically important banks, which could potentially cause significant damage to the financial system on a global scale.”
Also among the most troubled banks entered the British “HSBC” Swiss “Credit Suisse” (both included in the list of largest banks in the world).
In addition, the American branch of German “Deutsche Bank” and the Spanish “Banco Santander SA” failed stress test, the fed (“Deutsche Bank” fails for the second year in a row). Also significant problems among American banks is fixed at “Morgan Stanley”.
But among all the troubled banks (and the problem is not only the above, but many other large banks) Deutsche Bank is the most difficult. I would even say that his situation is hopeless.
According to the open statements of the Bank, in 2015 the DB lost 6.8 billion loss, compared with a profit in 2014, $ 1.7 billion. The income of the Bank amounted to 33.8 billion euros, which is even 5% more than in 2014.
However, all this is minor figures compared to the rapid growth in the number of toxic assets on the balance sheet of Deutsche Bank.
The Bank’s management in the person of CEO John Cryan and jürgen Fitchen announced “a new strategy that needs to change the Bank rate”. However, the strategy mainly paints the changes in the number and location of Bank branches, and also in the number of employees (which is informative, but not important), but does not explain what they intend to do with these same toxic assets.
In particular, Deutsche Bank has built a pyramid of derivatives value of over 70 TRILLION euros. If, or rather WHEN it collapses, the fall of “Lehmann Brothers” will seem easy cold compared to the bubonic plague.
If you drop the “Lehmann Brothers in 2008 led to the loss of half a million jobs in the U.S. alone, the eviction of over 3 million people from their homes, the decline in global trade, and the consequences of the crisis are not fully cropped still, despite a few episodes of “quantitative easing” (QE) by the fed, the consequences of a new crisis that can be triggered by the fall of the “Deutsche Bank”, will be several times worse.
Even the IMF analysts admit that it will cause a chain reaction that will bring down not only Eurozone, but also will result in us stock markets. The ECB alone will not draw the consequences of such a collapse, and the unwillingness to bear the brunt of the effects (especially after the British referendum on leaving the EU) will encourage the participating countries to the parade of sovereignties, with the result that the EU will likely cease to exist.
And the day when Deutsche Bank goes bankrupt, rapidly approaching. In the last trading session on Friday the company’s shares sank 15%, setting a new historic low. Another two or three such sessions, and VSO.
So “News.Finance” wonderwhy “the story of Deutsche Bank for some reason long does not spin the media too much,” although we have repeatedly written about the problems in the Bank a year ago (we habitually were called alarmists).
Let’s compare the graphs of the falling value of shares, “Deutsche Bank” and “Lehmann Brothers”.
As you can see, they display almost identical trends.
In fact, the same problems exist as well as BNP Paribas, JP Morgan, Citigroup), and several banks. But, judging by the attention of the public focus on “DB”, decided to implement the strategy “you Die today and I tomorrow”.
