Deutsche Bank – Nein Schadenfreude

DB_Schadenfreude

Source:   Urban Dictionary 

Hat tip to Holger for pointing this out in the morning.

Didn’t we post something to the effect yesterday?

We expect the term “Counter-Party Risk” to become all the rage of the market experts into year-end as Deutsche’s stock circles the drain.

Sounds like the German government is preparing for a bailout of DB.  Merging two weak banks will require a significant injection of capital.  Who will, if any, be bailed in?   – GMM,  December 9th

Deutsche Bank stock hit another all-time low in Frankfurt this morning,  down to 7.26 before bouncing, to close the day down 4 percent.

DB_Stock

The large U.S. banks didn’t participate in today’s yuuge reversal.  DB’s death spiral may be one reason why.

It’s schadenfreude to see your competition circling the drain unless it’s systemic.

Deutsche Bank … is one of the most important net contributors to systemic risks in the global banking system. These findings underline the importance of ensuring the resilience and stability of the bank.  – IMF, June 2016

 

DB_Market Cap

DB Is No Lehman

In our last post on DB, we noted the bank is no Lehman Brothers.  The German government will never let their flagship go down and already rumors of a bailout/merger is coming.

They better get on with it before things go sideways nonlinear.

When credit officers charged with counter-party risk in large financial institutions see charts like the one above,  they are not exactly inspired with confidence and thrilled to approve bigger or even extend current counter-party limits.  WATCH THIS SPACE!

You heard it here waaay first.  If you’re gonna panic, always better to do it before everyone else.

Keep this one on your radar, folks.

This entry was posted in Banking, Black Swan Watch, Uncategorized and tagged , , . Bookmark the permalink.

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