Deutsche Bank Meltdown $250 Trillion Debt -- Be Ready For Economic Collapse & Stock Market Crash - financialanalysis


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Friday, December 20, 2019

Deutsche Bank Meltdown $250 Trillion Debt -- Be Ready For Economic Collapse & Stock Market Crash

Deutsche Bank Meltdown $250 Trillion Debt -- Be Ready For Economic Collapse & Stock Market Crash.
Rumors have it that Deutsche Bank is the zombie bank causing the Fed's repo market crisis. If Deutsche Bank goes down, it all goes down. It's like a house of cards. Because it is heavily interlinked via derivatives with the big banks on Wall Street, including JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley, and Bank of America. It has become a dark cloud on the horizon. In the same way, Citigroup cast a negative pall in the early days of the financial crisis of 2008. Europe's biggest investment bank, Deutsche Bank, is in deep trouble. If it becomes real, it will be the end of the financial system as we know it. Deutsche Bank could not fail without causing a domino effect and taking with it the whole system with $250 Trillion Debt. Welcome to The Atlantis Report. Deutsche Bank is the largest bank in Germany is, and in the E.U. Deutsche Bank was founded 149 years ago in March 1870 in Germany, it operates in 58 countries and had 89,958 employees in Q3 2019. Deutsche Bank bank is the 17 largest bank in the world with 1.5 Trillion in assets. Its stock has been nose-diving in recent years. It laid off 20,000 employees. It appears that it is getting close to being a zombie bank. The bank, however, has 45 trillion dollars in derivatives, and these appear to be densely interconnected to U.S. banks. European banks and financial institutions are quite fragile–given the trillions in non-performing loans, negative rates, etc. Along with individual emerging market economies' sovereign debt (and dollarized corporate debt) loads Argentina, Turkey, etc. India's shadow banks leverage and NPLs, and China's debt, Europe banks may prove the next locus of the global financial crisis on the agenda. That more general financial fragility (and thus instability) would undoubtedly raise the probability of Deutschebank repeating the role of Lehman in the next crisis. In short, you can't evaluate Deutschebank just in relation to its (and its counterparties) derivatives exposure. Contagion will not occur only within a specific subset of the banking system; it will soon spread via expectations to other sectors of the credit system (as it did in 2008), and that will quickly feedback negatively on the Deutschebank-partners derivatives exposure condition. The banking sector is having a rough time. According to the McKinsey Report, One in Three Banks Threatened to Disappear in the Coming Months. There have been a weakness signal months ago when Deutsche Bank has been reducing its working force by 18,000 since July according to a CNN report. A series of geopolitical risks from the erratic trade war between the U.S. and China; and remaining ambiguity over Brexit. Tensions in Middle East Hong Kong, and now recently, China have created an extraordinary situation that is not only very difficult to predict. But also bears the risk of volatility in the financial markets. And it's already evident that these uncertainties are beginning to impact the world economy. After a decade of global growth, there are clear signs of a slowdown in some major economies. The warning bells of a recession are ringing and include Europe. Deutsche Bank is bankrupt; our system will start to break under its own weight. Europe's biggest investment bank, Deutschebank, is in big trouble. If it becomes real, it will be the end of the financial system as we know it. Deutsche Bank could not fail without causing a domino effect and taking with it the whole system. It's also a harbinger of a bigger problem with European banks in general, which are loaded with trillions of euros in non-performing bank loans. They haven't been able to shed since the crisis of 2008 and subsequent eurozone double-dip recession of 2011. The region's banks and insurers have lost dramatic amounts of ground, with only one still ranking in the top 20 globally by market value compared with six before the financial crisis. Deutsche Bank is to Germany is what Wells Fargo is to the U.S. .it just does not stop at one scandal, there is another and another and another. Today, Deutsche Bank was convicted of derivatives transactions in Italy. An Italian court convicted 13 former bankers from Deutsche Bank, Nomura, and Monte dei Paschi di Siena on Friday over derivative transactions that prosecutors say helped MPS the world's oldest bank conceal huge losses. The verdict also ordered the seizure of 64 million euros, about $70.5 million, from Deutsche Bank and 88 million euros from Nomura as part of the sentence. Monte Dei Paschi reached a settlement of 10.6 million euros with the court in 2016. The case centers on two controversial derivatives deals, known as Alexandria and Santorini, that Nomura and Deutsche Bank arranged for Monte Dei Paschi in 2009. Prosecutors said the deals helped Monte Dei Paschi, which was founded in 1472 and is Italy's fourth-biggest lender, hide more than 2 billion euros of losses it racked up after the costly acquisition of a smaller rival in 2008. Monte Dei Paschi's managers were accused of colluding with Deutsche Bank and Nomura bankers to hide losses at the Italian lender by using complex derivatives trades, dubbed Santorini, and Alexandria, that led to a misrepresentation of its finances between 2008 and 2012. Deutsche bank should be allowed to collapse; they're a failed venture, it's not in the capitalist system to save failed businesses and the consequences for the common man from paying those bailouts have been catastrophic. Welcome to The Atlantis Report. Europe's biggest investment bank Deutsche Bank is technically bankrupt.And of course for everyone who knows Deutsche bank is the bank for derivatives trading. We are talking about derivatives contracts in the value range of quadrillions of dollars — not millions, not billions, not trillions of quadrillions. And derivatives contracts are at the very core outright gambling. Deutsche Bank is in big trouble. If its bankruptcy becomes real, it will be the end of the financial system as we know it. And as the big banks are highly leveraged, and they are interdependent. If one major bank fails, a lot of others are going to fall like dominoes. Deutsche Bank could not collapse without causing a domino effect and taking with it the whole financial system. it's also a harbinger of a bigger problem with European banks in general and the Italian bank in particular, which are loaded with trillions of euros in non-performing bank loans. They haven't been able to shed since the crisis of 2008 and subsequent eurozone double-dip recession of 2011. The European banks and insurers have lost dramatic amounts of ground, with only one still ranking in the top 20 globally by market value .compared with six before the financial crisis. Deutsche Bank president Carl von Rohr said before yesterday at Bloomberg's Future of Finance conference in Frankfurt: while challenges abound from an erratic trade war to Brexit to unrest in Hong Kong and Chile, they pale in comparison with the headwinds for banks from low and negative rates he said. Germany should at least sue the FED for its gold back, which she idiotically stored in the U.S. has, so far, refused to return the gold, has even barred the Germans from taking a look at it to make sure it's still there. It isn't. It's gone - and your guess is a good as mine as to whose bankers it might have been squirreled away. Global Investor Jim Rogers said about Deutsche Bank in a recent interview: If you look at its balance sheet, you will see it has enormous, staggering debts both on balance sheet and off-balance sheet, which means their debts that they don't reveal directly. It probably will survive if it has support, but otherwise, we all are going to have a massive problem in the next couple of years. I've told you before: you should be anxious. In the western world, the world is going to have a lot of problems in the next couple of years. Be worried! Then the E.U. would disintegrate because Germany would no longer be able to support it, would not want to support it. A lot of other people would start bailing out; many banks in Europe have problems. And if Deutsche Bank has to fail – that is the end of it. In 1931, when one of the largest banks in Europe failed, it led to the Great Depression and, eventually, WWII. Be worried! Germany has been rightly telling everybody not to bail out their banks, but if they have to bail out their banks suddenly, then other countries will be furious, and the politicians will have a field day. the banking sector is having a rough time, according to the McKinsey report. One in three banks threatened to disappear in the coming months. Conscious of the stakes, the banks have already begun their process of rationalization, and the potion is bitter. In 10 years 2008 to 2018, already 600,000 banking jobs have been lost in eurozone alone. Deutsche Bank has announced this summer that it will cut 18,000 jobs worldwide by 2022 as part of a seven-point four billion restructuring plan. It started with the bad loan problem of the public sector banks having a spillover effect in terms of public perception on private sector banks. However, the image of private banks among investors and the public took a real hit. According to McKinsey, banking institutions have no choice but to refocus their activity on specific trades just like Deutsche bank, which will close down almost all of its equity-related activities. As the Fed was carrying out hundreds of billions of dollars in emergency loan operations on Wall Street for the second week in a row, the first such operations since the financial crisis. Deutsche Bank's headquarters office in Frankfurt Germany was being raided by police for the second time in less than a year. That's not the sort of thing that inspires confidence among depositors to keep their money in any bank. Deutsche Bank has been a constant headache for the U.S. financial system because it is heavily intertwined via derivatives with the big banks on Wall Street, including JP Morgan Citigroup Goldman Sachs Morgan Stanley and Bank of America. It has become the dark cloud on the horizon in the same way Citigroup cast a negative pall in the early days of the financial crisis of 2008. It's not a good omen that Citigroup stock eventually went to 99 cents, and the bank received the largest taxpayer and Federal Reserve bailout in U.S. history. The Fed alone secretly pumped 2.5 trillion dollars in revolving loans into Citigroup from December 2007 to the middle of 2010. The latest raids in Deutsche Bank occurred on September 24th and 25th and was related to the 220 billion dollar money laundering probe of Danske Bank; Denmark's largest lender . Deutsche Bank served as a correspondent bank to Danske Bank in Estonia branch, where the laundering is alleged to have occurred.As the raid was proceeding. Former Head of Danske Bank in Estonia Is Found Dead in Suicide . The body of Aivar Rehe, who previously ran the Estonia business of Danske Bank was discovered by police . Mr. Rehe's death is another twist in the money-laundering scandal, which prompted a criminal investigation and forced Danske Bank, Denmark's largest lender, to withdraw from Estonia and other Baltic countries. In Estonian Ray a has been questioned by prosecutors and was considered a key witness in the probe his death focused renewed attention on money-laundering allegations that have tainted the previously upright image of Scandinavian banking; led to official investigations in Sweden, Germany and the United States; and even threatened the economies of the Baltic countries. his death is being called an apparent suicide by European media. on the day the police raid started at Deutsche Bank. the Federal Reserve Bank of New York offered thirty billion dollars in 14-day emergency term loans, and had demand for more than twice that amount .that led the New York Fed to increase its subsequent 14-day term loans from 30 billion to 60 billion dollars. later in the week, the feds overnight repo loans were offered every day last week were also increased from 75 billion per day to 100 billion per day. Deutsche Bank has been in slow-motion collapse as a result of its serial crime charges .while international regulators have failed to address the fact that it's a counterparty to 49 trillion dollars national face value in derivatives according to its 2018 annual report, and thus presents systemic risk throughout the global financial system. Its similarities to Citigroup in 2008 are mind-numbing; given a decade of political talk about how risk has been reined in on Wall Street . The Deutsche Bank's social media team has caused a Twitter storm after moving to deny a story published by Zero Hedge that it was on the verge of collapse. likening Deutsche Bank's travails to that of Lehman Brothers before its collapse. The Zero Hedge stake presented the giant German Bank as a zombie institution on the brink of catastrophic ruination that would bring down the entire financial system. All the more remarkable then to see Deutsche Bank social media team deigning to issue a rebuttal which served only to add a sheen of legitimacy to the Zero Hedge article. Just like we witnessed with Lehman Brothers, there's always an effort to maintain the charade until the very last minute . This led to a collective outpouring from the libertarian Twitter fringe. It is strange that a bank is out commenting on an article like that. German financial services giant Deutsche Bank is one of the largest and most important economic institutions in the world; mainly due to self-imposed scandals. The bank is now having to take drastic measures to stay afloat. Investors everywhere should note that if such a critical piece of the too-big-to-fail banking system falters. It could trigger another global economic collapse and stock market crash. More precisely, the financial system has already collapsed years ago and has since been artificially kept running. Of course, there will come the point when these artificial measures are exhausted, and the financial system will finally shut down. Unfortunately, like it or not, we're all its creditors, and so everyone's bank accounts are cleared and closed overnight. All pensions, life insurances, social security payments, and savings disappear when the markets collapse. Food doesn't get transported, life changes: see the bad thing now. In short, greed has killed the west. We are all now going to pay a hefty price. It probably won't affect the super-rich as most have remote houses away for when civil disobedience begins on a level unseen before. This is possible as the middle class is under distress, and once the impoverished and middle class meet on the same pain; then this will be the end of the system as we know it. Don't count on bailouts this time. Bail-ins are possible, namely taking of depositors funds. The Current system unsustainable .should Deutsche Bank collapse or not? In fact, the sooner this happens, the better. Debts must be eliminated. With this mega collapse, the new structure of world power will be introduced. Until recently, the U.S. had two unique assets - U.S. Dollar and military. Both assets in tatters now. U.S. dominance has gone forever. The U.S. as we knew it till recently gone too. What the U.S. did under Obama was to use taxpayer dollars to bail out our banks. After partying, and giving the CEOs substantial bonuses, they also gave large donations to the DNC for Hillary's future coronation, and to continue Obama's protection for both the institution as well as the bankers who are considered too big to fail. If the countries in Europe think the US is their friend, they are kidding themselves. Military expansionism by the U.S. and weakening Europe's economy makes global hegemony so much easier. Obama gave the banks in the U.S. a very slight slap on their wrists, and no one was held accountable. But European banks, now that is something else. The E.U. puppets finally realize the U.S. doesn't consider them friends, more like employees. The World financial system is at the point of collapse regardless of Deutsche Bank. Deutsche Bank's failure will only speed it up. It won't be the leading cause of it. RIP Deutsche Bank, RIP the U.S., RIP old world order. Hello, new world. Deutsche Bank keeps papering over the cracks with derivative contracts with Wall Street. Deutsche Bank essentially has an overdraft with the FED. The Germans have mortgaged their citizen's pensions to loan money to Greece to buy German diesel submarines and Mercedes cars. This money never really left Germany, just made a loop, and wound up being a subsidy for German manufacturers. Ask yourself why Greece needs 40 F-16's and a half dozen modern submarines? "The strong southern flank of NATO." The Russians are pissing themselves laughing. This was an end-run around the public forum to prop up defense contractors. Basically, Greece has tourism (make me laugh) and olive trees and a merchant fleet. It is essential that several years ago, the Dutch and German state banks collected their gold reserves and returned them. Also, around the time (2001) that the FED started printing, this was when the huge construction boom began in Spain. Big airports in the middle of nowhere, etc. This real orgy would have been a windfall for German steelmakers (Rebar). Much of this was financed through Italian banks borrowing from German banks borrowing from the FED. Deutsche Bank is nothing but a criminal money-laundering operation masquerading as a bank. 

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