'Deutsche Bank may be the end of Merkel's career'
http://finance.yahoo.com/news/deutsche-bank-may-end-merkels-144337723.html
Deutsche Bank is under siege, and according to noted bank analyst Christopher Whalen of Kroll Bond Rating Agency, the fault lies with German Chancellor Angela Merkel.
"The problem with Deutsche Bank may be the end of Merkel's career," he told Business Insider over the phone. "The question is does she want to be remembered for doing the right thing — which is to provide support for the bank and diffuse the situation — or does she want to be remembered for standing by when one of the largest banks in Europe failed?"
Earlier this week, Merkel said she would not provide aid to the struggling bank or any other lenders in its position, like Italy's Monte Paschi. It's a politically popular position, as there's little appetite among her constituents for a perceived bailout.
However, it set off a chain of events that Deutsche Bank's CEO said in a letter to his staff has made the bank "subject to speculation."
"It is our task now to prevent distorted perception from further interrupting our daily business," CEO John Cryan said in the letter. "Trust is the foundation of banking. Some forces in the markets are currently trying to damage this trust."
The bank's stock fell almost 7% in the US on Thursday after a Bloomberg report suggested that hedge funds may be ready to pull their money from the bank. It's up about 12% on Friday during the US session. Two weeks before all this, reports indicated that Deutsche may have to pay the US government $14 billion for toxic derivative products from the financial crisis. Now it looks like that fine may be closer to $5.4 billion.
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http://finance.yahoo.com/news/deutsche-bank-may-end-merkels-144337723.html
Deutsche Bank is under siege, and according to noted bank analyst Christopher Whalen of Kroll Bond Rating Agency, the fault lies with German Chancellor Angela Merkel.
"The problem with Deutsche Bank may be the end of Merkel's career," he told Business Insider over the phone. "The question is does she want to be remembered for doing the right thing — which is to provide support for the bank and diffuse the situation — or does she want to be remembered for standing by when one of the largest banks in Europe failed?"
Earlier this week, Merkel said she would not provide aid to the struggling bank or any other lenders in its position, like Italy's Monte Paschi. It's a politically popular position, as there's little appetite among her constituents for a perceived bailout.
However, it set off a chain of events that Deutsche Bank's CEO said in a letter to his staff has made the bank "subject to speculation."
"It is our task now to prevent distorted perception from further interrupting our daily business," CEO John Cryan said in the letter. "Trust is the foundation of banking. Some forces in the markets are currently trying to damage this trust."
The bank's stock fell almost 7% in the US on Thursday after a Bloomberg report suggested that hedge funds may be ready to pull their money from the bank. It's up about 12% on Friday during the US session. Two weeks before all this, reports indicated that Deutsche may have to pay the US government $14 billion for toxic derivative products from the financial crisis. Now it looks like that fine may be closer to $5.4 billion.
(More at above url)