Deutsche Bank

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    Interesting article by BBC on the Deutsche Bank.

    That tells, Deutsche Bank with assets of 1.64 trillion euros and liabilities of 1.58 trillion euros, has a net value of just 60 billion euros which has help cause its share price to collapse by 70% in just the last year alone. On top of that, Deutsche Bank has US75 trillion in derivatives on its books, far greater than Germany could contain, if those bets went sour.

    Some sites speculate that the Deutsche Bank is another Lehman in the making. When its price enters single digits it could collapse the entire financial sector, requiring a bailout that not even Germany could afford. If Deutsche Bank share price continues to fall at its current rate we are likely to find out if that speculation is correct within the next few months. Deutsche Bank share price is 11.54E UR last night after falling another 5.56% last night.

    The EU started a bail-in policy at the start of 2016, meaning bank deposits will be used to pay off debts occurred by insolvent banks, instead of bailouts provided by governments. If that doesn't cause a bank run on stressed banks, nothing will.

    Last edited by glend: 07/07/16
 
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