by Mish
Deutsche Bank shares today set yet another record low in price. The Telegraphreports Deutsche Bank rout deepens: Shares plunge below €10 for first time ever.
What is going on?
Perception Issue
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.”
#eu #deutschebank brags it has 20 million customers. OK. What would happen if 30% of then pulled their funds?
— Mike “Mish” Shedlock (@MishGEA) September 30, 2016
“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.
#DeutscheBank “Forces want to weaken us” says CEO Cryan. This sounds like a “Blame the shorts” excuse with only 3% of the shares are short.
— Mike “Mish” Shedlock (@MishGEA) September 30, 2016
Be Warned: The Deutsche Bank Implosion is About “Something” Far Bigger Than The $14 Billion DOJ Settlement https://t.co/hhMOzFjhQN
— David Stockman (@DA_Stockman) September 30, 2016
Hedge Funds Pull Business From Deutsche Bank
The Financial Times reports Hedge Funds Pull Business From Deutsche Bank
Turkey Buyers
Links
- 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.
- Merkel Says No Aid for Deutsche Bank; Depositor Bail-In Coming Up?
- Deutsche Bank Shares Plunge to Record Low: Who Got the Trade Correct?
- Is Deutsche Bank Cooking its Derivatives Book to Hide Huge Losses?
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.
Regardless of what is wrong, this is the key question: Is a Depositor Bail-In Coming Up?
Get Out of German Banks Now!
No matter what you believe, why take chances?
#eu #DeutscheBank Get out of German, Italian, Eurozone banks now! Why take chances? The entire European banking system is suspect.
— Mike “Mish” Shedlock (@MishGEA) September 30, 2016
Mike “Mish” Shedlock
