Will DeutscheBank go belly up, and if so, will their exposure to derivatives cause another GFC type credit crunch? http://www.nytimes.com/2016/10/01/business/dealbook/deutsche-bank-stock-bailout.html?_r=0 Jim Willie: If Deutsche Bank Goes Under It Will be Lehman TIMES FIVE! | Silver Doctors Signs of Trouble for Deutsche Bank | Geopolitical Futures
No & No.... Allowing it to fail would be economic, political & social suicide... It would put immense pressure on EU cohesion hence a lot of pressure would currently be on the Bundestag to ensure it doesn't happen. I believe something else will be the trigger for the next credit crunch....
its already almost a non event, apparently they are close to negotiating the fines down from 14billion to 5.4b+ Deutsche Bank Jumps on Report of $5.4 Billion DOJ Settlement But now more fines may be incoming Deutsche Bank Charged Over Paschi Accounts as Legal Hits Mount What will happen is there will probably be some slimming down and consolidation in the German banking sector. Commerzbank Scraps Dividends Through 2019 as CEO Slashes Jobs My bet on next credit crunch will be China after its central bank runs out of ammunition and things fall apart.
Nothing to worry about..they will negotiate a settlement on the fine. And even if they can't find a settlement, the German govt will step in to rescue them.
The U.S regulator would not want them to go belly up as that would have impacts on the world economy, including USA. Therefore I think a middle ground will be reached ~$1-2bn, which will be manageable for DB.
I was at a luncheon with some economists on Friday who were discussing this. Their view was that it would be resolved through government intervention
Germany's Merkel cannot afford to bail out Deutsche Bank: media Seems like Merkels not gonna help... Merkel Rules Out Help for Deutsche Bank, Focus Magazine Reports
