Pressure is building for Germany to show it's ready to rescue Deutsche Bank

[MikeWB]

German officials could be about to find themselves in an uncomfortable position: Being called on to show they're ready to rescue a bank in a part of the world where such operations are considered taboo.

Deutsche Bank came under intensified market fire Thursday, the latest salvo being a Bloomberg report that a small number of hedge funds are trimming their sails at the German bank.

In a broad perspective, the move would represent a minor dent in Deutsche's derivatives clearing business. Barry Bausano, chairman of Deutsche's hedge fund business, told CNBC on Thursday that while there have been some outflows, there have also been inflows, which he said is "part of the typical ebbs and flows" of the prime brokerage business.

But at a time when investors are fearing what the future holds for the highly leveraged institution, such news is enough to cause ripples. Shares tumbled more than 7 percent in mid-afternoon trading. The plunge took the broader market down as well.

Consequently, market talk intensified that it's becoming time for the German government step in and assure investors that it will be at the ready to stabilize both Deutsche and the broader system — much along the lines of what U.S. officials had to do during the 2008 financial crisis.

"They're going to probably have to say that they would be willing to put funds into the bank," said banking analyst Christopher Whalen, senior managing director and head of research at Kroll Bond Rating Agency. "It's exactly like what (former Treasury Secretary Henry) Paulson did with Citi ... It's a very analogous situation. Hopefully, the German government will take a page from that particular book and look at how the U.S. responded."



German officials could be about to find themselves in an uncomfortable position: Being called on to show they're ready to rescue a bank in a part of the world where such operations are considered taboo.

Deutsche Bank came under intensified market fire Thursday, the latest salvo being a Bloomberg report that a small number of hedge funds are trimming their sails at the German bank.

In a broad perspective, the move would represent a minor dent in Deutsche's derivatives clearing business. Barry Bausano, chairman of Deutsche's hedge fund business, told CNBC on Thursday that while there have been some outflows, there have also been inflows, which he said is "part of the typical ebbs and flows" of the prime brokerage business.

But at a time when investors are fearing what the future holds for the highly leveraged institution, such news is enough to cause ripples. Shares tumbled more than 7 percent in mid-afternoon trading. The plunge took the broader market down as well.

Consequently, market talk intensified that it's becoming time for the German government step in and assure investors that it will be at the ready to stabilize both Deutsche and the broader system — much along the lines of what U.S. officials had to do during the 2008 financial crisis.

"They're going to probably have to say that they would be willing to put funds into the bank," said banking analyst Christopher Whalen, senior managing director and head of research at Kroll Bond Rating Agency. "It's exactly like what (former Treasury Secretary Henry) Paulson did with Citi ... It's a very analogous situation. Hopefully, the German government will take a page from that particular book and look at how the U.S. responded."

[rmstock]

I also posted this here.

On Monday morning Sept 26, 2016 the pre-arranged fall of Deutsche Bank was
triggered by the Bundes Chancelor herself. Also in the Dutch press
warnings were printed about a possible collapse of Deutsche Bank :

  "Nieuw dieptepunt Deutsche Bank - Het aandeel Deutsche Bank verloor
    maandagochtend 6%, na de opmerking van Bondskanselier Angela Merkel dat
    zij overheidssteun voor Duitslands grootste bank niet zou steunen"
Which translates into :
   "New low for Deutsche Bank - The share price for Deutsche Bank lost 6%
    on Monday morning, after remarks by Bundes Chancellor Angela Merkel that
    she would not grant Government support for Germany's largest bank"
http://www.telegraaf.nl/dft/26680464/__Aandeel_Deutsche_Bank_verder_onder_druk__.html

Ain't that the same woman from the former East-German Democratic
Republic who allowed all these refugees into Germany, stating `Wir
Schaffen Dass' ? On the same day in other news Dutch news:

   "Barroso had al langer contact met Goldman - José Manuel Barroso
    onderhield al toen hij voorzitter van de Europese Commissie was warme,
    geheime contacten met zakenbank Goldman Sachs. Dat blijkt uit
    correspondentie tussen..."
Which translates into :
  " Barroso has had longer contact with Goldman - José Manuel Barroso
    already maintained when he was president of the European Commission
    warm, secret contacts with investment bank Goldman Sachs. That appears
    from correspondence between ..."
http://www.telegraaf.nl/dft/nieuws_dft/26681190/__Barroso_had_al_langer_contact__.html

One needs to keep paying attention how the hare and hounds are running.
Traitors from within are deadly. Juncker nearly exploded when he heard
about Barroso's double agenda, when the news broke that Barroso was to
be hired by Goldman Sachs. In retrospect, the tragedy inflicted by
Goldman Sachs upon the European Union could not be more graveling.
Goldman Sachs brought Greece into deep debts resulting in a never ending
budget problem for the ECB in Brussels. Also Italy was in fact
taken-over by Goldman Sachs. And recently it came to light that
meanwhile Goldman Sachs now also dictates to Janet Yellen what to write
inside official Federal Reserve memo's :

Former Federal Reserve Employee Avoids Prison, Gets Fine for Stealing NY Fed Doc
March 27, 2016

The downfall of Deutsche Bank might however never happen. In fact
before the Creditors (who are they actually besides Goldman Sachs?) are
to collect their debts, they might even be behind bars even faster :

"[...]
The leaders of Goldman Sachs "confidentially forwarded, to Barroso's
office, proposals upon changes to European Union policies." [...]"
http://www.brusselstimes.com/brussels/6529/barroso-direct-contact-with-goldman-sachs-during-term-in-brussels

The Financial Times is trying to wave the devastating news about Barroso
away, when giving an editorial about the problems at Deutsche Bank.
This is however not a honest and valid interpretation. Most certainly
as it has been revealed that Goldman Sachs has no valid business policy
when dealing with conflicts of interests. :

Barroso direct contact with Goldman Sachs during term in Brussels
(listen to "The Secret Recordings of Carmen Segarra")

How could anyone see and believe that after Lehman's also Deutsche Bank
will be munched by Bandit bank Goldman Sachs ? In good times Goldman
had of course their `little men' well dispersed across all involved
parties, but times have changed. The shitstorm is going to unfold.

[rmstock]

Pressure is building for Germany to show
it's ready to rescue Deutsche Bank
Jeff Cox | @JeffCoxCNBCcom
5 Hours Ago [Thu Sep 29 20:48:52 CEST 2016]
http://www.cnbc.com/2016/09/29/pressure-seen-building-for-germany-to-rescue-deutsche-bank.html

[MikeWB]

DB has trillions in derivatives exposure. There's no country on Earth that could bail them out if all those derivatives suddenly became worthless (odds or everything becoming worthless are slim but the risk is so great). That's why German gov is quiet. It's a lose-lose situation right now.

[rmstock]

DB has trillions in derivatives exposure. There's no country on Earth that could bail them out if all those derivatives suddenly became worthless (odds or everything becoming worthless are slim but the risk is so great). That's why German gov is quiet. It's a lose-lose situation right now.

Sofar not a single Banker has gone to jail for what happened in 2008.

The creation of  trillions in derivatives is a criminal act in itself.
Its like a hacker tweaking the numbers of your bank account.

There is no way that such an action will be adjusted by allowing
a bank to go bust and the entire real physical economy of Germany as a result.
The problem lays with the involved Justice Departments itself. Both in Germany
and in Washington D.C.. In Washington a Former Federal Reserve Employee
who stole confidential information for Goldman Sachs avoided prison and
got a fine. Which Courts of Justice are in involved in Germany and The Hague
i have no information of.