Drudge Retort: The Other Side of the News
Thursday, November 07, 2019

The biggest bank in Europe is in the process of imploding, and there are persistent rumors that the final collapse could happen sooner rather than later. Those that follow my work on a regular basis already know that this is a story that I have been following for years. Deutsche Bank is rapidly bleeding cash, they have been laying off thousands of workers, and the vultures have been circling as company executives desperately try to implement a turnaround plan. Unfortunately for Deutsche Bank, it may already be too late. And if Deutsche Bank goes down, it will be even more catastrophic for the global financial system than the collapse of Lehman Brothers was in 2008. Germany is the glue that is holding the EU together, and so if the bank that is right at the heart of Germany's financial system collapses, the dominoes will likely start falling very rapidly.


Alternate links: Google News | Twitter

It reported a net loss of 832 million euros ($924 million) for the third quarter of 2019. Analysts were expecting a loss of 778 million euros, according to data from Refinitiv. It had reported a net profit of 229 million euros in the third quarter of 2018, but a loss of 3.15 billion euros in the second quarter of this year.

If you add the losses for the second and third quarter of 2019 together, you get a grand total of nearly 4 billion euros.

How in the world is it possible to lose that much money in just 6 months?

If all they had their employees doing was flushing dollar bills down the toilet for 6 months, it still shouldn't be possible to lose that kind of money.


Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.

$10 trillion in derivatives exposure. Once that fire starts to burn, no force on Earth can put it out....

#1 | Posted by HeliumRat at 2019-11-07 02:36 AM | Reply | Newsworthy 1

well...there's always Greece.

#2 | Posted by ichiro at 2019-11-07 04:14 AM | Reply

DB can go down without too much impact on the system as a whole. What made the Lehman collapse lead to contagion was that the collapse was rapid and not predicted. For DB - this has been a slow motion train wreck for a long, long time which everyone with smart money saw coming. The government tried to force several mergers already so everyone already know it is a zombie bank. There will still be some forced asset sale/transfer agreement with the government taking a small hit, but it will be a small ripple, not a wave. As for $10T in derivatives exposure, that is overblown. Most of these contracts expire worthless or settle for fractions of a cent on a dollar as the underlying never actually changes hands (like foreign currency forward contracts).

#3 | Posted by iragoldberg at 2019-11-07 10:57 PM | Reply

It's a good thing I have no moral qualms about cannibalism. Lesson One.

#4 | Posted by HeliumRat at 2019-11-07 11:57 PM | Reply | Funny: 1

Are we screwed again?

#5 | Posted by hamburglar at 2019-11-08 03:00 PM | Reply

Comments are closed for this entry.

Home | Breaking News | Comments | User Blogs | Stats | Back Page | RSS Feed | RSS Spec | DMCA Compliance | Privacy | Copyright 2019 World Readable

Drudge Retort