Proud Moments in Neoliberalism: Deutsche Bank Peril Makes the NYT

LONDON — Germany’s largest bank appears in danger, sending stock markets worldwide on a wild ride. Yet the biggest source of worry is less about its finances than a vast tangle of unknowns - not least, whether Europe can muster the will to mount a rescue in the event of an emergency.

http://mobile.nytimes.com/2016/10/01/business/dealbook/deutsche-bank-sto...

I'm just a poor boy from a poor family, but losing half the share value in this incomplete year doesn't sound enticing to would-be investors with normal agendas. But, not to worry according to an Italian finance professor:

“Deutsche Bank is so big and so systemically important that the rules will be bent,” Mr. Borri said. “If I were an investor, I would assume that the rules would be bent.”

Of course, it all may be a nifty strategy to hold down the Justice Department noodle thrashing:

Deutsche is sitting on cash reserves worth €240 billion, or about $269 billion. It has sold bonds that can be converted to equity should the need arise. The Justice Department’s proposed fine of $14 billion is viewed as the opening of a negotiation that could cost Deutsche a fraction of that amount — thinking that sent the stock surging on Friday.

Too big for my possibly imperiled britches!

[video:http://youtu.be/SKRma7PDW10]

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Galtisalie's picture

by magic. So in honor of Barry Manilow's last tour:

[video:https://m.youtube.com/watch?v=52-EkZRnG2E]

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Bollox Ref's picture

in her home state of Mecklenburg-Vorpommern.

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Gëzuar!!
from a reasonably stable genius.

thanatokephaloides's picture

Because I'd bet we're seeing quite a bit of it in Greece right now!

Wink

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"US govt/military = bad. Russian govt/military = bad. Any politician wanting power = bad. Anyone wielding power = bad." --Shahryar

"All power corrupts absolutely!" -- thanatokephaloides

Hawkfish's picture

Thanks for all your hard work in this subject!

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We can’t save the world by playing by the rules, because the rules have to be changed.
- Greta Thunberg