 Is Deutsche Bank the next Lehman?

[midas]

Libor rigging scandal: US probing former Deutsche Bank traders

At least five former Deutsche Bank traders are being investigated by the US Department of Justice over the manipulation of the London interbank offered rate (Libor).

Bloomberg, citing two people with knowledge of the situation, reported that the department was preparing cases against the people and could bring charges against them before the end of 2015.

BaFin, said in its report that the bank's outgoing co-CEO Anshu Jain may have "knowingly made inaccurate statements" to Germany's Bundesbank during a 2012 interview about the benchmark-setting process.

http://www.ibtimes.co.uk/libor-rigging-scandal-us-probing-former-deutsche-bank-traders-1510359

[green job]

The German coup on Greece is a disgrace. You cannot solve problems with the same thinking,that was used,when they were created.

[Naam]

forcing €U-taxpayers to finance the lion share of Greece's debt, meanwhile $410,000,000,000 (that includes the pending $89,000,000,000 agreed day before yesterday), is not only a disgrace but a criminal procedure.

hopefully those taxpayers, especially the German ones, will teach Angela Merkel and her bootlicking €U-cronies a lesson come next election.

[AyG]

forcing U-taxpayers to finance the lion share of Greece's debt, meanwhile $410,000,000,000 (that includes the pending $89,000,000,000 agreed day before yesterday), is not only a disgrace but a criminal procedure.

hopefully those taxpayers, especially the German ones, will teach Angela Merkel and her bootlicking U-cronies a lesson come next election.

If the Greeks are paying a decent interest rate on the debt, it may not be too bad. Greek 10 year government bonds now yield around 10.5% and I'd hope they were paying a similar rate on the new debt. However, I can't find any reference in the newspaper reports to any interest at all. Surely they're not getting all this money interest free?

[Naam]

forcing U-taxpayers to finance the lion share of Greece's debt, meanwhile $410,000,000,000 (that includes the pending $89,000,000,000 agreed day before yesterday), is not only a disgrace but a criminal procedure.

hopefully those taxpayers, especially the German ones, will teach Angela Merkel and her bootlicking U-cronies a lesson come next election.

If the Greeks are paying a decent interest rate on the debt, it may not be too bad. Greek 10 year government bonds now yield around 10.5% and I'd hope they were paying a similar rate on the new debt. However, I can't find any reference in the newspaper reports to any interest at all. Surely they're not getting all this money interest free?

the rates differ but those charged for the EU loans are ridiculously low (talk is <1.5%) plus maturities are going to be extended till Kingdom comes. these conditions do of course not apply to existing government bonds which are basically held by private investors and in the case of banks indirectly by the shareholders of these banks.

expect to see debt restructuring with substantial haircuts for these bonds!

the nominal interest rate on IMF loans is (according to Messrs. Tsipras and [the late] Varoufakis) "unbearably" high at 3.5%!

[Robert24]

forcing U-taxpayers to finance the lion share of Greece's debt, meanwhile $410,000,000,000 (that includes the pending $89,000,000,000 agreed day before yesterday), is not only a disgrace but a criminal procedure.

hopefully those taxpayers, especially the German ones, will teach Angela Merkel and her bootlicking U-cronies a lesson come next election.

If the Greeks are paying a decent interest rate on the debt, it may not be too bad. Greek 10 year government bonds now yield around 10.5% and I'd hope they were paying a similar rate on the new debt. However, I can't find any reference in the newspaper reports to any interest at all. Surely they're not getting all this money interest free?

yield on the Greek 10 yr gov bond is around 12.4%. Well down from above 20% before when a deal was considered shaky.

[Robert24]

forcing €U-taxpayers to finance the lion share of Greece's debt, meanwhile $410,000,000,000 (that includes the pending $89,000,000,000 agreed day before yesterday), is not only a disgrace but a criminal procedure.

hopefully those taxpayers, especially the German ones, will teach Angela Merkel and her bootlicking €U-cronies a lesson come next election.

Eurozone becoming a transfer union, soon government debt will be transferred to Eurozone level and Eurozone bonds will be issued.

[midas]

Deutsche Bank said to face US money laundering probe

US authorities are investigating German banking giant Deutsche Bank over alleged money laundering in Russia, people familiar with the matter said Monday.

http://www.nation.co.ke/business/Deutsche-Bank-said-to-face-US-money-laundering-probe/-/996/2788102/-/12cd4yn/-/index.html

Edited July 14, 2015 by midas

[SheungWan]

forcing €U-taxpayers to finance the lion share of Greece's debt, meanwhile $410,000,000,000 (that includes the pending $89,000,000,000 agreed day before yesterday), is not only a disgrace but a criminal procedure.

hopefully those taxpayers, especially the German ones, will teach Angela Merkel and her bootlicking €U-cronies a lesson come next election.

Eurozone becoming a transfer union, soon government debt will be transferred to Eurozone level and Eurozone bonds will be issued.

In your dreams.

[Robert24]

Well it all started already in 2011 when the EU agreed to a 50% haircut of Greek debt. Now again with the 3rd bail out package, I mean nobody really ever expects Greece to pay back their debt. Also ECB will lose a significant part of all the credits they granted to Greece and the Greek National bank. So this is all step 1 to a transfer Union. Next step will be to issue Eurozone debt, move more fiscal power to the Eurozone level etc.

[Robert24]

just to add: if the intent of the Eurozone member is not a transfer union, the action they are taking doesn't make sense as it is headed directly to a transfer union. Common sense economy tells you that there are only 3 ways to fix a problem of a heavily indebted country:

1) grow your way out of it. Impossible for Greece. further tax increases, spending cuts will shrink the GDP further.

2) inflate your way out of it. Impossible for Greece as they have no control over monetary policy.

3) cut spending: that's what they have done the last 5 years and it hasn't worked. Cutting spending to a degree you can reduce debt level is impossible for Greece.

So there are only 2 options left: 1) stay in Eurozone and other countries cover for debt in Greece. 2) exit Eurozone and go bankrupt. Now they excluded no 2) and chose 1). Pretty logical conclusion that this is headed in the way of a transfer union in my opinion.

[cdnvic]

Please don't turn this into a Greece topic. We have a few running on that already.

[green job]

Please don't turn this into a Greece topic. We have a few running on that already.

Sorry but I see it this way,,,, The Deutsche Bank were one of the original instigaters that caused this mess,,,Or at very least finaced a few corners to help trap them

in. Deautsche Bank and the union crooks through and through BUT soon things will change,

[midas]

Germany Blasts Deutsche Bank Executives Over Culture

German regulators accused a half-dozen current Deutsche Bank AG executives of failing to stop or tell regulators about years of attempted market manipulation, according to a confidential report reviewed by The Wall Street Journal that portrays the German bank as suffering from a badly broken corporate culture.

http://www.wsj.com/articles/germany-blasts-deutsche-bank-executives-over-broken-culture-1437068759?mod=djemalertEuropenews

Edited July 17, 2015 by midas

[midas]

The Federal Financial Supervisory Authority ( BAFIN ) considers the behaviour of Deutsche Bank to be symptomatic of a “ poisonous culture” even including the Group’s legal counsel, Richard Walker.

The structure and culture of Deutsche Bank, right up to the present day, encourages and rewards bad behavior by traders and their management. What a rabble. It is bad enough when executives running profit centers behave in a less than ethical manner. But when negligence and corruption runs through those functions that are supposed to police profit center management, rules have no meaning and malpractice proliferates. Chris Arnade, who spent many years working as a trader on Wall Street, observed on Twitter:

" In all cases managers encouraged bad behavior: rewarded it. The culture of Wall Street is entirely steeped in abusing rules and not just pushing, but living, in a gray area."

http://www.forbes.com/sites/francescoppola/2015/07/18/the-willful-blindness-of-deutsche-banks-management/

[Naam]

FRANKFURT— Deutsche Bank AG ’s incoming co-chief John Cryan on Thursday presented a sharp rise in the bank’s second-quarter profit, driven by unexpectedly strong investment banking revenue and lower overall taxes, but warned of challenges and underscored his focus on cutting costs.

Germany’s biggest lender said net profit more than tripled to €796 million ($873.52 million) from €237 million in the same period last year, on revenue of €9.2 billion, up from €7.86 billion. Its tax rate fell to 33% from 74% a year earlier.

Deutsche Bank’s top-line benefited from a boost from its massive debt and equity trading operations as well as its asset and wealth management unit.

http://www.wsj.com/articles/deutsche-bank-lifts-profit-1438236577

Cryan did not mention any potential insolvency problem

[IMA_FARANG]

UPDATE

I don't have any "sides" in this......but didn't I just read somewhere that a Deutsche Bank official in China was recently put 'on leave" from his job with the Bank for supposedly making an unapproved loan to a Chinese businessman from bank money.

The Chinese are investigating the loan in their latest corruption probe.

More news...... Bloomberg has the story 28 July 2015

Look for the headline on Bloomberg news ......

Deutsche Bank’s Morton Said Put on Leave After China Fund Probe

Edited July 31, 2015 by IMA_FARANG

[Naam]

does the behaviour of a Deutsche Bank employee in China cause insolvency or a "Lehman effect"?

[Anthony5]

FRANKFURT— Deutsche Bank AG ’s incoming co-chief John Cryan on Thursday presented a sharp rise in the bank’s second-quarter profit, driven by unexpectedly strong investment banking revenue and lower overall taxes, but warned of challenges and underscored his focus on cutting costs.

Germany’s biggest lender said net profit more than tripled to €796 million ($873.52 million) from €237 million in the same period last year, on revenue of €9.2 billion, up from €7.86 billion. Its tax rate fell to 33% from 74% a year earlier.

Deutsche Bank’s top-line benefited from a boost from its massive debt and equity trading operations as well as its asset and wealth management unit.

http://www.wsj.com/articles/deutsche-bank-lifts-profit-1438236577

Cryan did not mention any potential insolvency problem

Well at least he sent out some warning signs.

http://www.ft.com/intl/cms/s/0/13ad36a2-3603-11e5-b05b-b01debd57852.html?ftcamp=traffic/partner/feed_headline/us_yahoo/auddev,traffic/partner/feed_headline/us_yahoo/auddev#axzz3hQytJHJP

The bank also has a number of legal wrangles to resolve — ranging from investigations into sanctions-busting to probes into whether Deutsche breached anti money-laundering laws for Russian clients — and some analysts have speculated that it could need to raise more capital.

Mr Cryan acknowledged the bank could not control “external” events. However, he said that he did not think raising capital was in the best interests of Deutsche’s shareholders, and made clear that he would prefer to shed assets to improve the bank’s capital position.

[Naam]

some analysts have speculated...

[Rancid]

Seems Lehmans was allowed to go under, DB is a different animal, definitely TBTF. Most governments (except Austria of course) have bail-ins now legislated. Governments can't afford a 2nd round so the public will pay directly.

As to the Doomers, technically they are right, but they have all been wrong haven't they? Central banks run the economies, and they have held out longer than most imagined they could. Perhaps the corrupt system will just keep going or maybe the turning point is around the corner.

[midas]

Seems Lehmans was allowed to go under, DB is a different animal, definitely TBTF. Most governments (except Austria of course) have bail-ins now legislated. Governments can't afford a 2nd round so the public will pay directly.

As to the Doomers, technically they are right, but they have all been wrong haven't they? Central banks run the economies, and they have held out longer than most imagined they could. Perhaps the corrupt system will just keep going or maybe the turning point is around the corner.

According to Martin Armstrong (and others who are saying the same things )we dont have long to wait now.................He is really sticking his neck out but enough people believe in him and what he says that they made a movie about him.................

MARTIN ARMSTRONG, once a US based trillion dollar financial adviser, used the number pi to predict economic turning points with precision. When some big New York bankers asked him to join the club to help them to take over Russia, he refused to join the manipulation. A few days later the FBI stormed his offices accusing him of a 3 billion dollar Ponzi Scheme - an attempt to stop him talking about the real Ponzi Scheme of debts that the US has build up over the years and which he thinks starts to collapse after October 1, 2015, a major pi turning point he is predicting.

http://www.imdb.com/title/tt4103404/plotsummary?ref_=tt_ov_pl

Edited August 2, 2015 by midas

[AyG]

According to Martin Armstrong

According to a man with no formal qualifications.

According to a man with a ludicrous fixation on PI.

According to a convicted criminal fraudster (he had to pay back $606 million to his victims and spent 7 years behind bars).

Great source. Tell me more.

[midas]

These people just can’t help themselves

DOJ Launches a New Criminal Investigation Into Deutsche Bank Russian Trades

Just days after WSJ revealed that Deutsche Bank's $2.5 billion LIBOR settlement could be in jeopardy due to the apparent mishandling of chat records dating back to 2005, Bloomberg says Loretta Lynch’s Justice Department has launched ANOTHER criminal probe into the bank’s alleged role in facilitating a series of trades which may have allowed Russian clients to launder billions through the bank's trading desks.

http://www.bloomberg.com/news/articles/2015-08-03/deutsche-bank-said-to-be-probed-by-doj-on-russia-mirror-trades

[gk10002000]

Sometimes there is a good correlation between how much a company advertises and a company going in the wrong direction. I am referring to the Deutsche bank golf tournaments.

[midas]

The First Crack: Deutsche Bank Preannounces Massive Loss, May Cut Dividend

http://www.zerohedge.com/news/2015-10-07/first-crack-deutsche-bank-preannounces-massive-loss-may-cut-dividend

[AyG]

Troubled Deutsche Bank announces sweeping restructuring

BERLIN: Scandal-plagued Deutsche Bank, Germany's biggest lender, on Sunday (Oct 18) announced a major business and management shake-up that would "fundamentally change" its leadership structure.

The announcement came after Deutsche Bank this month braced employees for bonus cuts, announced its biggest quarterly loss in about a decade and warned that even dividends could be scrapped.

Full article at: http://www.channelnewsasia.com/news/business/troubled-deutsche-bank/2201694.html

[AyG]

And now the knives are out for the staff - thousands of jobs to go, operations to be culled in 10 countries.

http://citywire.co.uk/wealth-manager/news/deutsche-to-cut-thousands-of-jobs-in-strategic-review

[midas]

Is It Time To Panic About Deutsche Bank?

http://www.zerohedge.com/news/2016-02-03/it-time-panic-about-deutsche-bank

Edited February 4, 2016 by midas

[midas]

Will Deutsche Bank Be Saved From Collapse?

Deutsche Bank forced to issue a statement defending its liquidity today after its stock crashed 10% to financial crisis lows, implying that a $70 Trillion derivatives book may be on the verge of collapse. Jim Willie’s warned that if Deutsche Bank goes down, it will be Lehman TIMES FIVE:

A failure of Deutsche Bank would trigger a systemic banking contagion the likes of which the Western world has never seen…

http://investmentresearchdynamics.com/will-deutsche-bank-be-saved-from-collapse/