The Epic Collapse of Deutsche “Bank". But Other European Banks will follow.

Deutsche Bank, the bank of derivatives and the favored BANK FOR OLIGARCHS both AMERICAN and RUSSIAN ; is in severe and significant trouble. But Deutsche Bank is not the only European bank tottering. Société Générale and ING are cutting their investment banks. HSBC is laying off several hundred people across its transaction-banking units. USB and Crédit Suisse have sacrificed their investment banks in favor of wealth-management businesses. By contrast, the 5 top investment banks by European revenue are JP Morgan, Goldman Sachs, Citigroup, Bank of America Merrill Lynch, and Morgan Stanley. They are closing the gap between them and their European counterparts. Deutsche Bank also seems to have the most exposure to Chinese banks. But I’m sure that will work out well. I mean, what could go wrong, right? Welcome to The Atlantis Report. This is all Déjà vu! "the global financial system simply cannot afford for Deutsche Bank to fail, and right now, it is literally melting down right in front of our eyes." Yeah, the American taxpayer has heard it before, that it is time for bilking him again through the FED and the Administration. Funny, they hate "Derivatives" at the end, though they dive into the same Derivatives with gusto at the beginning. Either stop the Derivative games or, if you don't want to, then use the pathway already built into the rules for handling failures in derivative trading. Don't drag tax money into it and reduce its value by printing more money with QE and bailout, BECAUSE YOU DIDN'T ASK TAXPAYER FOR ANY PERMISSION when you jumped into the derivatives in the first place. If the taxpayer was an uninterested, uninvolved third party, in the beginning, he is still an uninterested, uninvolved third party in the end too. Deutsche Bank is the largest bank in Europe is sitting on about $49 trillion in gross derivatives exposure. Though netting this amount results in it being substantially reduced, on days where markets are on a tailspin, the portfolio causes outsized losses, like the 6.8 billion euro the bank took last year. It is not going to be pretty when it goes under. If things got to such a state, either Deutsche Bank would be bailed out by the German Government, (although this is not allowed by EU law, I believe), or a merger/take over by another Greman bank would be “arranged.” On the 7th of July 2019, Deutsche Bank announced it would cut 18,000 jobs and shut its global equities sales-and-trading business. Ouch! Deutsche Bank is the latest European bank to be on the blink. How did it come to this? Up to the 2008 banking crash, Deutsche Bank was a leader in bundling up homeowners’ debt into huge packages and selling them to investors. This led to the infamous “sub-prime debacle.” When things went south, Deutsche Bank continued to sell toxic products, but then bet against them via derivatives. Neat! It did not cut bloated and risky operations. Although there were write-downs and fines, the structural problems were not addressed until this year. It has been finished off by slow economic growth in Europe and negative interest rates. Equity capital now has to be raised on terms that will destroy much of the shareholders’ value—at present, shares are selling at 25% of the book value. Deutsche Bank is on the hook, just like all of the other casino players. If Deutsche Bank bought the sunshine and lollipop story in the 2011 to 2013 period about normalization and one of the 19 financial firms in that 2013 Obama meeting promised that the rigging would go their way, they are screwed. Derivatives on interest rates I assume are deadly. And most of the largest “too big to fail banks” in the United States have profound financial connections to the bank. In other words, the global financial system simply cannot afford for Deutsche Bank to fail, and right now, it is literally melting down right in front of our eyes. For years I have been warning that this day would come, and even though it has been hit by scandal after scandal, somehow Deutsche Bank was able to survive until now. But after what we have witnessed in recent days, many now believe that the end is near for Deutsche Bank. On July 7th, they really shook up investors all over the globe when they laid off 18,000 employees and announced that they would be completely exiting their global equities trading business. When they laid off 18,000 employees...' cuz that will fix their failed investments? This bank will either be bailed out, or it won't. But what is the point of cutting payroll when you are talking about Trillions in potential losses? Think about it. Do the bankers not grasp the scale of the issues at stake? Because, if they did, they would not be yanking around with their employee's puny incomes pretending layoffs mean anything in the context of such a massive liability. And even the optics of such a move make no sense. This is begging for people to cash out, sending signs of instability just as one would want to show strength and confidence (even if the crisis were out of control). The whole story makes one think either 1) that rank incompetence is at work or 2) that we are all being played. If there is a chance for one company to re-enact Lehman style panic, it is Deutsche Bank. Making it worse is that Deutsche Bank is far, far more significant than Lehman (in fact, its derivatives book alone is about 11 times the size of Germany’s output for a year). Donald Trump’s relationship with Deutsche Bank began in 1998 when he negotiated and received, a loan for $125 million for construction of the Trump skyscraper located at 40 Wall St. At this point in his rocky financial history, six separate corporate bankruptcies related to Trump had been declared, and no other financial institution would grant the brash real estate mogul any credit. Deutsche Bank took over Bankers Trust in 1998, and the only way to meet its ambitious earnings goals was to be aggressive under its new management. Still, Trump had to be grateful to his new lender. Through the years, he sought more loans from Deutsche Bank. It should be noted that Trump sued Deutsche Bank in 2008 when it called in a big loan that Trump had personally guaranteed to the tune of $40 million. Ultimately, they settled, and the relationship continued. As the New York Times pointed out in an article, “Mr. Trump’s business has made the bank money.” Not long after the nastiness of the 2008 countersuits, Trump’s business with Deutsche Bank moved from the bank’s commercial real estate lending division to its private wealth division, where executives were more willing to deal with him. Trump’s wealth manager at Deutsche Bank, Rosemary Vrablic, specializes in real estate and is close enough to Trump and his family — both Ivanka Trump and Jared Kushner are clients — that she was invited to attend the inauguration last year. In the past six years, the Deutsche Bank private wealth unit helped finance three of Trump’s properties, including a golf resort near Miami (Doral), a new hotel in Washington DC, and Trump Tower in Chicago, all of which include personal guarantees by Trump. He and his organization currently owe Deutsche Bank over $300 million. Trump’s 2017 Financial Disclosure form reflected two Deutsche Bank Asset & Wealth Management accounts. Management A/C 1 is a brokerage account that lists 71 assets (stocks), and Management A/C 2 is a bond account that contains 44 separate assets or bonds managed by Deutsche Bank for Trump. The value of these assets is difficult to ascertain since they are only listed in a range, but a conservative estimate would be a minimum of $100,000 and a maximum of $10 million. This form does not address any possible use of tax shelters, nor does it indicate the ownership and/or use of any offshore bank accounts. Income tax returns would be required to determine the above — and the president has refused to disclose any tax returns to date. The form also does not educate the reader as to whether any of the massive loans provided to Trump by Deutsche Bank have been sold or transferred to another financial institution, e.g., Vneshekonombank (VEB), as rumored in media reports in early December 2017. In my opinion Deutsche Bank fall from grace began on 6-4-1999 when it acquired Bankers Trust Company (BTCo) that promptly joined the Federal Felons list (SDNY- 250-CR-1999), Their fine was $19 million which capped Deutsche Bank’s criminal liability with their ‘Uncle’ picking up the rest of the tab that became exceedingly pricey but still less than a BTCo bailout! The ‘banksters’ at BTCo had been a booster of Enron under CEO Frank Newman and handled many ‘transactions’ for them. And let's not overlook that Enron's stock’ was one of the top 10 holdings in BTCo’s Trust Accounts! Wonder how that worked out for the Trust Accounts? Of course, we can surmise that BTCo made out Ok! BTCo and Deutsche Bank are serial felons and criminals and, as such, should not be serving in any Fiduciary Capacity whatsoever! However, some how, by means of the ‘Magic Circle’ and ‘Silver Circle’ of shysters, they work their magic! Notwithstanding, the US Labor Dept has, for years, given them “Free Passes” in the form of ‘Rubber Stamped Exemptions” so that they may continue to “manage” the Trillions of dollars in ERISA Pension Funds that they control. When does this scam stop, and when is there total accountability! Deutsche Bank is merely an ATM for the Federal Regulators! Felons/Criminals are prohibited from being Fiduciaries – The Emperor Has No Clothes! Since Deutsche Bank rigged LIBOR, they must think they can rig anything! Can you imagine ! a derivatives book of $49 trillion! Wells Fargo couldn't handle a mere 10 billion in derivatives. Deutsche Bank probably has 20% in nonperforming loans. The French bank BNP has basically pulled out of Italy. The rumor is they have 40% nonperforming loans there. We are talking about EU banks here. The Feds bailed out the American banks and gave them a free ride, which is why I get .004 percent interest on my so-called savings there. The crash is coming make no mistake about that. Our US Dollar will be worth something, maybe nothing like before but spendable. I can't say the same for the EURO, RUBLE, or YUAN. Perhaps a small mountain will be left, but the US Dollar will be on top. All they need to do is dump all their treasuries and all their stocks and all their oil holdings also, if they have any, and everything will be just fine, won't it? Or should I ask, is this the plan? Dump everything causing massive deflation to the stock and treasuries? And the oil markets? In other words, is Deutsche Bank the new tool they will use to shatter the world markets as they have never been broken before? I believe the free money creation is injected into stocks, treasuries, and oil, which caused inflation in the markets. The opposite effect is exact also, withhold the money and we will see deflation as we've never seen it before. The results? A total collapse of the world economies and massive layoffs in government; since there will only be capital losses to live on instead of capital gains. Is Deutsche Bank the newest scapegoat. What did Warren Buffet call derivatives, weapons of mass economic destruction? Hard to believe that the derivatives market has only been around 20 years and will ultimately be the vehicle that brings down the entire system. How do you unwind 49 trillion in derivatives? You don't. We can thank Larry Summers and his band of merry idiots for this one.












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