 Is Deutsche Bank the next Lehman?

[midas]

On 9/19/2016 at 9:45 PM, 4evermaat said:

Doesnt matter. Too big to fail. You'll see some sort of bailout/in soon.

Stay tuned to FinanceFeeds.net and FinanceMagnates.com as they are likely to have breaking news coverage.

 

Maybe but maybe not   

 

Merkel Rules out Assistance for Deutsche Bank, Focus Reports

" the company's default risk has soared higher and is now the widest name in the Markit iTraxx index "

 

http://www.bloomberg.com/news/articles/2016-09-24/merkel-rules-out-assistance-for-deutsche-bank-focus-reports

 

 

Edited September 26, 2016 by midas

[partington]

What does this mean for db-x ETF tracker funds?

 

 I have avoided buying these because they are "synthetic" : rather than buying actual constituents of an index, e.g. UK government bonds, they enter into an agreement with a bank or financial institution which pays them the amount that the index has risen. I have the economic knowledge and understanding of a dim 12 year old, but I have always avoided synthetic ETFs, simply because they are beyond my understanding, but sound dodgy.

 

The counterparty bank for db-x trackers is Deutsche  Bank - does this mean investors in db-x ETFs will lose their money if Deutsche Bank fails?

[midas]

17 hours ago, partington said:

What does this mean for db-x ETF tracker funds?

 

 I have avoided buying these because they are "synthetic" : rather than buying actual constituents of an index, e.g. UK government bonds, they enter into an agreement with a bank or financial institution which pays them the amount that the index has risen. I have the economic knowledge and understanding of a dim 12 year old, but I have always avoided synthetic ETFs, simply because they are beyond my understanding, but sound dodgy.

 

The counterparty bank for db-x trackers is Deutsche  Bank - does this mean investors in db-x ETFs will lose their money if Deutsche Bank fails?

 

It seems to me that unless you're in something like a bear fund you are unlikely to come out ahead if Deutsche Bank fails?

 

http://www.barrons.com/articles/look-whos-shorting-deutsche-bank-1474370588