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Off Topic / Deutsche Bank CrCIA
« on: September 30, 2016, 03:54:39 AM »
to put it simply, the stock of Deutsche Bank, one of the more important banks in the world economy, is at an all time low and keeps getting lower it's starting to go back up as it looks like someone is buying to keep it alive, but the bank has still taken a hefty hit
though by the time i post this maybe something's changed
keep in mind a lot of these articles have the usual sensationalism added into it
real-time links
http://money.cnn.com/data/world_markets/europe/ (Market Hours/Countdown)
https://www.google.com/finance?cid=673474 (Google Deutsche Bank Graph)
at the time of posting this, it's at 9.96 and going down -8.85% (now 10.24 at -5.84%)
http://www.cnbc.com/2016/09/29/the-deutsche-bank-crCIA-how-we-got-here-and-where-we-are.html
http://www.zerohedge.com/news/2016-09-29/run-begins-deutsche-bank-hedge-fund-clients-cut-collateral-exposure
http://www.marketwatch.com/amp/story/guid/1B8FCC9C-8669-11E6-A751-447CDAF369FF
http://www.express.co.uk/finance/city/714881/Deutsche-Bank-collapse-could-it-be-worse-Lehman-Brothers-financial-banking-crCIA-2008
http://www.wsj.com/amp/articles/the-ghost-of-lehman-brothers-haunts-deutsche-bank-1475193863
though by the time i post this maybe something's changed
keep in mind a lot of these articles have the usual sensationalism added into it
real-time links
http://money.cnn.com/data/world_markets/europe/ (Market Hours/Countdown)
https://www.google.com/finance?cid=673474 (Google Deutsche Bank Graph)
at the time of posting this, it's at 9.96 and going down -8.85% (now 10.24 at -5.84%)
http://www.cnbc.com/2016/09/29/the-deutsche-bank-crCIA-how-we-got-here-and-where-we-are.html
Quote
Shares of Deutsche Bank have hit record lows this week on mounting worries about the struggling German lender, and they were dropping again on Thursday.
On Thursday, a Bloomberg report raised concerns that a handful of funds are less willing to do business with the struggling firm. The report, citing a source and review of an internal document, said that a small number of the hedge funds that do derivatives business with the German bank have cut their exposure.
Deutsche Bank's U.S.-traded shares dropped after the report and were on pace to close at a record low.
http://www.zerohedge.com/news/2016-09-29/run-begins-deutsche-bank-hedge-fund-clients-cut-collateral-exposure
Quote
Deutsche Bank concerns just went to '11' as Bloomberg reports a number of funds that clear derivatives trades with Deutsche Bank AG have withdrawn some excess cash and positions held at the lender, a sign of counterparties’ mounting concerns about doing business with Europe’s largest investment bank.
While the vast majority of Deutsche Bank’s more than 200 derivatives-clearing clients have made no changes, some funds that use the bank’s prime brokerage service have moved part of their listed derivatives holdings to other firms this week, according to an internal bank document seen by Bloomberg News.
http://www.marketwatch.com/amp/story/guid/1B8FCC9C-8669-11E6-A751-447CDAF369FF
Quote
Fear on Wall Street jumped.
The commonly used gauge of market concerns, the CBOE Volatility Index VIX+7.99% rose about 15% at 14.28 on Thursday. At its peak on the day, the indicator was on track for its largest daily rise since Sept. 9, according to FactSet data, before pulling back somewhat later in the session.
The VIX—and products based on the index—are used by traders to track and bet on the prospect of gyrations in the S&P 500. Thursday’s moves appeared to be precipitated by elevated concerns about Deutsche Bank after a Bloomberg News report said a group of hedge funds decreased their exposure to the largest German bank.
Deutsche Bank DB-6.67% XE:DBK-8.56% has been in the spotlight for weeks, and fretting about the bank intensified following a Sept. 16 article by The Wall Street Journal, which said the U.S. Justice Department was seeking to level of $14-billion fine against the bank related to its sale of complex mortgage-backed bonds.
http://www.express.co.uk/finance/city/714881/Deutsche-Bank-collapse-could-it-be-worse-Lehman-Brothers-financial-banking-crCIA-2008
Quote
Phoenix Capital Research, an investment research firm based in Washington DC, believes that the trouble at Deutsche Bank signals a banking crCIA in the EU.
Phoenix said: “DB is the proverbial ‘canary in the coalmine’ for Europe.
"Perched atop one of the largest derivatives books in Europe, DB has ties to most major financial institutions in the region.
“Which is why as soon as DB starts nose-diving, you know something big is up.”
The investment research firm said that the bank’s shares fell by nearly 20% over about two weeks between Friday September 9 and Monday September 26.
It also noted that Deutsche Bank is “considerably” larger than Lehman Brothers and its long-term stock chart painted a “disturbing” picture.
“We believe the global markets are on the verge of another CrCIA. 2008 was Round 1. This next round, Round 2, will be even worse,” it said.
But the German Government has offered reassurances about the situation Deutsche Bank and has rejected comparisons to Lehman Brothers.
Senior conservative German lawmaker Hans Michelbach said it was “unimaginable” that the state would support the bank because there would be “public outcry”.
Mr Michelbach said: “You can’t compare Deutsche Bank with Lehman… The bank is in a position to get out of this situation on its own.”
http://www.wsj.com/amp/articles/the-ghost-of-lehman-brothers-haunts-deutsche-bank-1475193863
Quote
Eight years ago this month, Lehman Brothers failed in large part due to panicked hedge funds pulling their money. With some big hedge funds worried enough to cut their exposure to Deutsche Bank AG , the parallel is obvious—but also deeply misleading.
Deutsche Bank’s shares have plummeted in recent weeks after The Wall Street Journal reported that the U.S. Justice Department suggested the bank pay $14 billion from the bank to settle allegations around mortgage securities. The bank expects to agree to a lower figure.
Some hedge-fund clients have grown concerned about their exposure to the German lender, prompting them to pull assets and forcing bank executives to step up reassurances about its stability, according to people close to clients and the bank.
Hedge funds face the same dilemma all bank customers face. The gains from sticking with Deutsche are very small, while the potential losses if it were to run into trouble are very large.
“Everyone is hypersensitive,” said one hedge-fund manager caught out by the Lehman collapse. “Lehman’s taught everyone that there’s very little upside in keeping your exposure.”
Lehman failed the way all banks fail: It ran out of cash and liquid assets it could quickly sell to pay clients and counterparties as they ran for the exit.
In principle, the same could happen to any bank, as they never have enough easy-to-sell assets to pay back every depositor immediately. Deutsche is now in focus in part because clients have been spooked by its plummeting shares, down by more than half this year.


























