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Deutsche Bank: Germany's Financial Colossus Stumbles

theguardian.com

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Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#5

Post by Hermel »

_Codemonkeyism wrote: post #3

German media makes a point that Deutsche Bank has been hit hard with the fines from their (past) crimes. Investment bankers and CEOs took their bonuses and moved on. Spiegel reports Deutsche Bank used $15 billions since 2012 for legal disputes.

I wonder why there isn't more resistance against the exorbitant fines the US charges European banks every year. These fines have become a significant business risk and should be regulated in free trade agreements, just like subsidies are limited in such agreements. For many European banks, the US business is a money drain, i.e. it costs them more than they get from it. However, they cannot escape US regulation and legal exposure as long as they want to have the ability to trade US dollars. In the end, this is a hidden tax the US charges on all banks world wide, just because it is powerful enough to do so.

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#6

Post by jgreen10 »

Well, Germany has been allowed to act as the emperor with no clothes for a while now; an economic powerhouse sitting on empty pension chests with an ageing population.

To compare pension fund assets:

    US: $46k/capita
    UK: $42k/capita
    Netherlands: $76k/capita
    Germany: $2.9k/capita
http://www.oecd.org/finance/Pension-funds-pre-data-2015.pdf

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#7

Post by Kristine1975 »

Hermel wrote: post #5
_Codemonkeyism wrote: post #3

German media makes a point that Deutsche Bank has been hit hard with the fines from their (past) crimes. Investment bankers and CEOs took their bonuses and moved on. Spiegel reports Deutsche Bank used $15 billions since 2012 for legal disputes.

I wonder why there isn't more resistance against the exorbitant fines the US charges European banks every year. These fines have become a significant business risk and should be regulated in free trade agreements, just like subsidies are limited in such agreements. For many European banks, the US business is a money drain, i.e. it costs them more than they get from it. However, they cannot escape US regulation and le…

Maybe the banks should simply stop committing crimes.

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#8

Post by JetSetWilly »

Hermel wrote: post #5
_Codemonkeyism wrote: post #3

German media makes a point that Deutsche Bank has been hit hard with the fines from their (past) crimes. Investment bankers and CEOs took their bonuses and moved on. Spiegel reports Deutsche Bank used $15 billions since 2012 for legal disputes.

I wonder why there isn't more resistance against the exorbitant fines the US charges European banks every year. These fines have become a significant business risk and should be regulated in free trade agreements, just like subsidies are limited in such agreements. For many European banks, the US business is a money drain, i.e. it costs them more than they get from it. However, they cannot escape US regulation and le…

US Regulators fine all banks in the US that they catch flagrantly breaking the law. They don't just fine European banks - have a look at how much they have fined the likes of JPMorgan or BoA over the last few years.

Likewise, regulators in Europe dish out fines a-plenty. The FSA certainly did over the LIBOR scandal recently.

European banks could mitigate risk in the US by trading legally or by ceasing trading there at all. If they really think they can't trade legally then their business is not welcome.

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#9

Post by Findeton »

testerooooooo wrote: post #4
JumpCrisscross wrote: post #2

Maybe now we'll finally get eurozone-wide mutualised deposit insurance.

Yeah, that will solve it. Just like the eurozone money solved all the problems 15 years ago.

Precisely part of the problem was to give everyone the same currency but make every country fight each other for debt.

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#10

Post by Tomte »

jgreen10 wrote: post #6

Well, Germany has been allowed to act as the emperor with no clothes for a while now; an economic powerhouse sitting on empty pension chests with an ageing population. To compare pension fund assets: US: $46k/capita UK: $42k/capita Netherlands: $76k/capita Germany: $2.9k/capita http://www.oecd.org/finance/Pension-funds-pre-data-2015.pdf

Germany has a PAYGO mechanism when it comes to pensions (which is incidentally the only crisis-resistant and -adaptive kind of pension system).

Those "pension fund assets" can therefore only be private pension contracts on top of it.

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