Posted on 07/06/2019 6:16:20 AM PDT by srmanuel
Keep your eyes on Deutsche Bank on Monday.
The Banks has never fully recovered from the financial meltdown in 2008......they have been suffering huge losses in the investment banking division and have been accused multiple times for financial shenanigans.....several large hedge funds and other corporate clients have quietly been moving funds out of Deutsche Bank to other Banks, creating a slow but steady run on the bank...
The question is, will Deutsche Bank elect to stretch out the pain over time or use an axe to cut off all the dead weight at one time...
Potentially 15,000 to 20,000 US employees could be on the streets by Monday afternoon.....
Not saying anything crazy will happen on Monday but it's worth keeping your eye on the situation...
Didn’t Deutsche Bank roll over and release all of Trump’s loan information to Nadler the Hutt?
Yeah I can recite all the reasons to the contrary but I would rest better at night with Glass Steagall back in force.
The real estate and sovereign debt bubble in Europe was far bigger than the one in the US. European banks for the most part have simply not recognized their bad loans and taken write downs. They are hoping to muddle through and slowly slowly bleed out the losses over time. If they recognized their toxic loans, several of them would be bankrupt. and no, its far from just Italian banks. What they’re saying about Deutsche Bank doesn’t surprise me in the least.
“...but I would rest better at night with Glass Steagall back in force.”
Tell me about it. I don’t know how many times we need to keep learning the same damn lessons, which are:
1) A huge number of Americans (and others) will borrow money if it’s available to them, regardless of the consequences.
2) Virtually all bankers are HAPPY to lend them that money, as it means big-time commissions.
To put it another way, while I like ‘free markets’ and libertarian ideas (other than when it comes to protecting national security assets), I don’t think that ideal has any place in banking - not if a country wants to have a healthy economy.
Correct me if I’m wrong, but Glass-Stegall covers US Banks and Foreign Subsidiaries operating in the US....Deutsche Bank’s problems are from non-performing loans in Europe and other places, plus huge investment bank problems, most of which are not covered by Glass-Stegall.
But 15-20k US Employees could be out of work on Monday which will be a problem...
As someone else pointed out, the European Banks never recaptialized after 2008 and did not write down or write off their bad loans, hoping to muddle by.....in Deutsche Bank’s case this has caught up to them.
German police raided Deutsche Bank offices on Thursday, seeking evidence in a money laundering investigation into the practice of hiding money offshore to elude tax collectors and government regulators. "Police officers and tax inspectors entered Deutsche Bank's headquarters in Frankfurt early Thursday morning and seized documents," NPR's Esme Nicholson reports from Berlin. "Prosecutors are investigating two employees of the bank who allegedly assisted customers in setting up offshore firms to avoid anti-money laundering safeguards when transferring money to accounts at Deutsche Bank."
Nicholson adds, "According to investigators, in 2016 alone, more than 900 Deutsche Bank customers were served by a subsidiary registered in the British Virgin Islands." Those 900 customers did business totaling 311 million euros (about $350 million), the Frankfurt prosecutor's office said.
The search involved some 170 officers from the prosecutor's office, the tax investigation department and the federal police, said senior public prosecutor Nadja Niesen, in an email to NPR. She added that the search resulted in the seizure of "numerous business documents" in either electronic or paper form. There have been no arrests, Niesen said. Deutsche Bank has been fined and criticized for its poor record of preventing money laundering. As Deutsche Welle reports, "In August, it confirmed that even after it was fined for helping Russian clients wash some $10 billion, its mechanisms to stop such criminal activity were still inefficient.
In a brief statement, the bank confirmed the investigation taking place "at a number of our offices in Germany." Without providing details about the inquiry, Deutsche Bank stated, "The investigation has to do with the Panama Papers case." It added, "We are cooperating fully with the authorities." (Excerpt) Read more at npr.org ...
============================
Panama Papers: Multiple Clinton connections /
By Anita Kumar, Marisa Taylor and Kevin G. Hall, McClatchy Washington Bureau
Highlights
<><>Some Clinton foundation donors used the Panamanian law firm for offshores
<><>Offshore connections come from the more than 40 years Bill and Hillary Clinton have spent in public life
<><>Candidate Clinton criticized those exposed in the Panama Papers, some looking to hide their wealth
Offshore corporations have one main purpose - to create anonymity. Recently leaked documents reveal that some of these shell companies, cloaked in secrecy, provide cover for dictators, politicians and tax evaders. BY Sohail Al-Jamea and Ali Rizvi / McClatchy
The British building society model was much better.
People would deposit money periodically into their local building society.
The management would learn about their customers.
When a customer had saved enough money, the customer would ask for a loan to buy a house.
Money from local building societies was limited and the amount available was in line with the strength of the local economy. Housing prices never became absurdly high.
This model was copied in the US as savings & loans.
The inflation of the LBJ’s Vietnam war upset the US S&L framework by increasing inflation and interest rates.
There is a big problem in very high metropolitan London housing prices.
Metro New York and DC also have housing price problems.
The problems of absurdly high housing prices are magnified by incompetent and left-leaning government policies.
The current banking situation is not anything close to a free market.
If banks make bad loans and bankrupt themselves, they should go out of business. As we saw, when they did just that, not only did they not go out of business but they got trillions in government intervention to prop them up.
That’s the reason for your point #2. There is NO risk to the banks, every loan made is free money.
Deutsche Bank flies the homo flag under Old Glory on their flag pole here in Jacksonville, FL. I won’t be shedding a tear if they go under.
Do you feel there’s some connection?
Monday Monday, can’t trust that day...
(Mammas and the Papas)
Did Dodd-Frank contribute to this at all I wonder?
Pretty bad piece of legislation, which is why Chris Dodd hasn’t been seen or heard from since I imaging.
Absolutely! The repeal of Glass-Stegall allowed investment banks to gamble with their depositers money.
Glass-Stegall nor Dodd-Frank had very little if anything to do with this....besides the investment banking loses the big thing killing Deutsche Bank is their non-performing loans in Europe which are not governed by either law...
they have sovereign debts and debts to the private sector that are non-performing which they have not written off....that is the cause of most of this...
“If banks make bad loans and bankrupt themselves, they should go out of business.”
Bankers make bad loans.
Bad bankers should have a seriously crimped future lifestyle.
Our financial systems now have serious flaws.
What actually happened is that within 2 years they were giving themselves record bonuses... while the rest of the country was still very much in the thick of the fallout from the bubble the bankers made.
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