caylus's - exciting long red bars - tuesday, page-5

On the previous thread Caylus mentioned some remarks by the CEO of Deutsche Bank. Found a Bloomberg article:

Deutsche Bank AG (DBK) Chief Executive Officer Josef Ackermann said conditions in the stock and bond markets are reminiscent of the financial crisis of late 2008.

?The ?new normal? is characterized by volatility and uncertainty -- not only in respect to market developments, but also in consideration of the future of the financial branch,? Ackermann said today at a conference in Frankfurt organized by Euroforum. ?All this reminds one of the fall of 2008, even though the European banking sector is significantly better capitalized and less dependent on short-term liquidity.? ...

Many European banks ?obviously? wouldn?t be able to shoulder writedowns on sovereign debt held in their banking books based on market values, Ackermann said today. Therefore European governments agreed to financial aid measures for countries, and forcing banks to boost their capital would undermine the credibility of existing support measures, he said.

Banks face ?a row of challenges? and containing costs is increasingly important when it is hard to boost revenue, Ackermann said. Deutsche Bank would consider additional cost reductions if markets don?t improve from August levels and if the outlook for the investment-banking division remains difficult in the long term, he said.

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