Deutsche Bank (DB) profits plummet 98%
https://www.rt.com/business/353516-deutsche-bank-profit-fall/
https://www.rt.com/business/353516-deutsche-bank-profit-fall/
Deutsche Bank (DB) profits plummet 98%
- Thread starter marsman
- Start date
Follow-up:
Max Keiser: Deutsche Bank ‘technically insolvent’, running a ‘ponzi scheme’ (2016-02-14)
https://www.rt.com/news/332446-keiser-deutsche-bank-technically-insolvent/
Which banks aren't, there was some analysis a little while back the FSC (Financial Compensation Scheme) can only sustain a partial run, if two banks go at the same time depositors are out of luck. Fractional banking works in low volatility, it doesn't work going forward.
To make profits in high volatility needs very smart people, who are also very efficient, there aren't that many around these days. Take productivity which is quoted as increasing, yet if you look at the revenue per employee per year on dow components it's shrinking since 2012. Someone's lying, the reason for full employment is that employees are less efficient now so you need more people.
The more people you have the more kinks you have in the pipe, and the banks are now so inefficient no central bank or trading nonsense can cover their losses. The problem is that they are so interconnected they will take each other out, so each bank is a ponzi and groups of country banks are another higher layer ponzi, then regional, continent and worldwide.
Only need one of them to go and the meltdown will occur, have been informed we are just about to experience 2007/8 by a factor of 2, should be interesting times ahead. HSBC have put a form of capital controls in place, they know something is brewing. Be fascinating to see which country goes first, not for the depositors but no-one seems to give a damn about them!
To make profits in high volatility needs very smart people, who are also very efficient, there aren't that many around these days. Take productivity which is quoted as increasing, yet if you look at the revenue per employee per year on dow components it's shrinking since 2012. Someone's lying, the reason for full employment is that employees are less efficient now so you need more people.
The more people you have the more kinks you have in the pipe, and the banks are now so inefficient no central bank or trading nonsense can cover their losses. The problem is that they are so interconnected they will take each other out, so each bank is a ponzi and groups of country banks are another higher layer ponzi, then regional, continent and worldwide.
Only need one of them to go and the meltdown will occur, have been informed we are just about to experience 2007/8 by a factor of 2, should be interesting times ahead. HSBC have put a form of capital controls in place, they know something is brewing. Be fascinating to see which country goes first, not for the depositors but no-one seems to give a damn about them!
"Currently DB has roughly $2 trillion assets supported by $68 billion of book value. ... It would only take a 3.5% write-down of its asset base to wipe out its book value. "
http://investmentresearchdynamics.com/will-deutsche-bank-be-saved-from-collapse/
In an other news article I once read that they have invested more than 85 billions in options"...
http://investmentresearchdynamics.com/will-deutsche-bank-be-saved-from-collapse/
In an other news article I once read that they have invested more than 85 billions in options"...
Firstly, this article is a little weird. Book value is defined as assets - liabilities, so saying something like "Currently DB has roughly $2 trillion assets supported by $68 billion of book value" doesn't make a lot of sense.
Secondly, I am prepared to bet that what you read about DoucheBank and options was referring to the gross notional exposure of one or more of DB options books. That, as I have said many times, means absolutely nothing, especially for a bank like DB. It certainly doesn't mean that DB spent 85bn buying options.
"Financial Review cites Paul Schulte, the Chief Executive of SGI Research, who warned that the bank is not only sitting on a mountain of bad assets dating from the previous crisis, but is holding "a large book of commodity-related derivatives that are under stress from the collapses in most commodity prices." (Oh, really! Everyone knows that Deutsche Bank has the world’s largest portfolio of derivatives.)"
http://www.larouchepub.com/pr/2016/160203_deutsche_bank.html
http://www.larouchepub.com/pr/2016/160203_deutsche_bank.html
