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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

#21

Post by ivanca »

JetSetWilly wrote: post #8
Hermel wrote: post #5

Earlier quoted context omitted.

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 a…

...but you forgot a little detail, the US saves each of its banks if they get any close to becoming bankrupt. They don't save foreign banks if the same happens, at all.

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#23

Post by kuschku »

wobbleblob wrote: post #17
Kristine1975 wrote: post #13

Earlier quoted context omitted.

I'm from Germany and the troubles of the Deutsche Bank please me to no end. The only thing I'm scared of is that it will be declared "too big to fail" and bailed out with tax money, while at the same time there's no money for schools, police, refugees etc because Wolfgang Schäuble is obsessed with his "black zero".

Maybe he can propose to sell some of the German islands to cover the bailout.

And then let Greece pay for the bailout! Good idea. We get rid of Sylt, and Greece has to pay.

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#24

Post by Libermentix »

aluhut wrote: post #22

> Headquartered in the same city as the bank, the newspaper said I thought their HQ is in London.

the bank is headquarted in Frankfurt: https://www.db.com/en/content/Imprint.htm

As far as i know the Investment Banking branch mainly operates from out of London.

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#25

Post by tomp »

DangerousPie wrote: post #18
chvid wrote: post #12

Germany led by Merkel has set itself up for trouble. Cyprus and Greece have created a precedence for creditor bail-ins. Public finances are stretched due to refugee inflows and opposition to Merkel is growing even internally in her massive coalition government. This setup may lead to something not predicted (ie. DB not getting the guarantees it needs or even a creditor bail-in) or more predictively the rise of left o…

Public finances are only stretched because the German government (and the electorate) has a weird aversion to taking on new debt. If she wanted to, Germany could essentially borrow money for free thanks to extremely low or even negative interest rates.

However, Merkel also pushed new EU legislation, so the government cannot help the bank (even if it has unlimited money) until depositors are bailed in. Currently, however, Italy is trying to find a loophole, that Germany might use as well later.

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#26

Post by CodingGuy »

Kristine1975 wrote: post #7
Hermel wrote: post #5

Earlier quoted context omitted.

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.

They can't - they are banks!

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#27

Post by sveme »

chvid wrote: post #12

Germany led by Merkel has set itself up for trouble. Cyprus and Greece have created a precedence for creditor bail-ins. Public finances are stretched due to refugee inflows and opposition to Merkel is growing even internally in her massive coalition government. This setup may lead to something not predicted (ie. DB not getting the guarantees it needs or even a creditor bail-in) or more predictively the rise of left o…

Public finances are not stretched at all - Germany is currently running a budget surplus. But apparently that does not fit your narrative.

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#28

Post by [deleted] »

JetSetWilly wrote: post #8
Hermel wrote: post #5

Earlier quoted context omitted.

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 a…

[deleted]

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#29

Post by Sidon »

wobbleblob wrote: post #11
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

My colleague from Greece has been giddy as a schoolboy about this story all week. Not quite the roaring, thunderous fits of laughter as with the Volkswagen scandal, but this is still developing.

Maybe your colleague from Greece should realize that when DB 'falls' tons of people will take the fall for it, regular people like you and me, people who are just trying to make a living, like all those poor fucks in Greece. The group of people taking the fall for it won't be limited to Germany, you can be sure Greeks will feel it as well.

Tell him to just stfu and get back to work.

Re: Deutsche Bank: Germany's Financial Colossus Stumbles

#30

Post by chvid »

Kristine1975 wrote: post #13
wobbleblob wrote: post #11

Earlier quoted context omitted.

My colleague from Greece has been giddy as a schoolboy about this story all week. Not quite the roaring, thunderous fits of laughter as with the Volkswagen scandal, but this is still developing.

I'm from Germany and the troubles of the Deutsche Bank please me to no end. The only thing I'm scared of is that it will be declared "too big to fail" and bailed out with tax money, while at the same time there's no money for schools, police, refugees etc because Wolfgang Schäuble is obsessed with his "black zero".

This is similar to saying I hope the nuclear plant blows up but I would really hate it if the government needs to clean it up.

In a way it is already too late.

The scandal is that DB has been allowed to grow this big.

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