What is going on?
The first thing we can rule out is Deutsche Bank’s comment this is a “perception issue”.
Banking stocks do not plunge from over $100 to under $10 on perception issues.
‘We should look at the complete picture’, says Deutsche Bank’s CEO
John Cryan. Deutsche Bank has more than 20 million customers. We are and remain a strong Deutsche Bank.”
“There are forces now under way in the market that want to weaken confidence in us. Our job now is to ensure that this distorted perception does not more strongly influence our day-to-day business,” said Cryan.
Hedge Funds Pull Business From Deutsche Bank
- The Cobden Centre asks Is Deutsche Bank Kaputt?
- ZeroHedge comments Deutsche Curve Inverts As Bundesbank Dismisses State Support Of “Zombie” Banks
- The Telegraph says The Deutsche Bank crisis could take Angela Merkel down – and the Euro
- ZeroHedge reports The Run Begins: Deutsche Bank Hedge Fund Clients Withdraw Excess Cash
I had several links as well.
What the Hell is Going On?
I do not know precisely, nor does anyone else. It could be exposure to Italian banks. It could be other counter-party risks. It could be a derivatives problem.
It could be Deutsche Bank’s derivatives book is so massively tangled that the bank itself is clueless where it stands.
But it is 100% clear that something major is wrong.
Get Out of German Banks Now!
No matter what you believe, why take chances?
Mike “Mish” Shedlock