Deutsche Bank “Bad Bank” Estimated €80 Billion! Mass Job Cuts Unleashed


Danbones
#1
Deutsche Bank “Bad Bank” Estimated €80 Billion! Mass Job Cuts Unleashed


The Money GPS
Published on Jul 6, 2019
https://www.youtube.com/watch?v=FaxI2sKCres

Looks like another Lemon is about to blow.
https://en.wikipedia.org/wiki/Bankru...ehman_Brothers

Last edited by Danbones; 1 week ago at 01:56 AM..
 
MHz
#2
Is he yawning?? Tell me he isn't yawning, . . . is that the total for this year or this month alone??
 
Danbones
#3
He's a Lehman about to blow.


Bankruptcy of Lehman Brothers
https://en.wikipedia.org/wiki/Bankru...ehman_Brothers
Last edited by Danbones; 1 week ago at 06:14 AM..
 
Danbones
#4
This is a lehmon blowing:

Monday morning:

Deutsche Bank staff sent home as 18,000 job cuts begin - business live

Deutsche Bank staff in London are learning how restructuring plan will affect them - some staff in Asia have already been sent home

Latest: Staff ‘in tears’ as axe falls in London
London employee ‘told to leave by 11am’
Mood ‘gloomy’ as staff let go
Introduction: Dark day for Deutsche staff
Reuters: Whole teams let go in Asia
https://www.theguardian.com/business...0845f89e308ad6

"When you Blow at High Deutsch..."
Last edited by Danbones; 1 week ago at 06:15 AM..
 
Danbones
#5
"The Mood Is Pretty Hopeless": Scene Outside Deutsche Bank Offices Evokes Lehman Collapse

At the end of the day, all of the frenzied whispers in the press about Deutsche Bank CEO Christian Sewing's sweeping restructuring hardly did it justice. Instead of moving slowly, the bank started herding hundreds of employees into meetings with HR, first in its offices in Asia (Hong Kong, Sydney), then London (which got hit particularly hard) then New York City.
https://www.zerohedge.com/news/2019-...ehman-collapse

Thar she blows...

( I sure called the Lemon thing though...)

They say this could be the beginning of the end of the world's current totally effed up financial system as we know it.
 
Walter
#6
Dirty, rotten Germans.
 
justlooking
#7
Quote: Originally Posted by Danbones View Post

They say this could be the beginning of the end of the world's current totally effed up financial system as we know it.


Not yet.
Maybe soon.
 
justlooking
+1
#8  Top Rated Post
Quote: Originally Posted by Walter View Post

Dirty, rotten Germans.


Not completely, there is all the Greek/Italian/Spanish debt instruments the ECB forced them to buy.
 
Walter
#9
Quote: Originally Posted by justlooking View Post

Not completely, there is all the Greek/Italian/Spanish debt instruments the ECB forced them to buy.

Nothing happens in the EU unless the Germans approve.
 
Danbones
#10
Derivatives
 
Danbones
#11
Bank Run: Deutsche Bank Clients Are Pulling $1 Billion A Day

There is a reason James Simons' RenTec is the world's best performing hedge fund - it spots trends (even if they are glaringly obvious) well ahead of almost everyone else, and certainly long before the consensus.

That's what happened with Deutsche Bank, when as we reported two weeks ago, the quant fund pulled its cash from Deutsche Bank as a result of soaring counterparty risk, just days before the full - and to many, devastating - extent of the German lender's historic restructuring was disclosed, and would result in a bank that is radically different from what Deutsche Bank was previously (see "The Deutsche Bank As You Know It Is No More").

In any case, now that RenTec is long gone, and questions about the viability of Deutsche Bank are swirling - yes, it won't be insolvent overnight, but like the world's biggest melting ice cube, there is simply no equity value there any more - everyone else has decided to cut their counterparty risk with the bank with the €45 trillion in derivatives, and according to Bloomberg Deutsche Bank clients, mostly hedge funds, have started a "bank run" which has culminated with about $1 billion per day being pulled from the bank.
https://www.zerohedge.com/news/2019-...-1-billion-day

You would think people would be paying attention to something like this happening. They will regret it later I am sure.


Oh, I doubt the German peeps approve of this. It's a robbery - Theirs.
 
MHz
#12
https://www.zerohedge.com/news/2019-...-1-billion-day
Bank Run: Deutsche Bank Clients Are Pulling $1 Billion A Day

There is a reason James Simons' RenTec is the world's best performing hedge fund - it spots trends (even if they are glaringly obvious) well ahead of almost everyone else, and certainly long before the consensus.
That's what happened with Deutsche Bank, when as we reported two weeks ago, the quant fund pulled its cash from Deutsche Bank as a result of soaring counterparty risk, just days before the full - and to many, devastating - extent of the German lender's historic restructuring was disclosed, and would result in a bank that is radically different from what Deutsche Bank was previously (see "The Deutsche Bank As You Know It Is No More").
In any case, now that RenTec is long gone, and questions about the viability of Deutsche Bank are swirling - yes, it won't be insolvent overnight, but like the world's biggest melting ice cube, there is simply no equity value there any more - everyone else has decided to cut their counterparty risk with the bank with the €45 trillion in derivatives, and according to Bloomberg Deutsche Bank clients, mostly hedge funds, have started a "bank run" which has culminated with about $1 billion per day being pulled from the bank.
As a result of the modern version of this "bank run", where it's not depositors but counterparties that are pulling their liquid exposure from DB on fears another Lehman-style lock up could freeze their funds indefinitely, Deutsche Bank is considering how to transfer some €150 billion ($168 billion) of balances held in it prime-brokerage unit - along with technology and potentially hundreds of staff - to French banking giant BNP Paribas.
One problem, as Bloomberg notes, is that such a forced attempt to change prime-broker counterparties, would be like herding cats, as the clients had already decided they have no intention of sticking with Deutsche Bank, and would certainly prefer to pick their own PB counterparty than be assigned one by the Frankfurt-based bank. Alas, the problem for DB is that with the bank run accelerating, pressure on the bank to complete a deal soon is soaring.
Here are the dynamics in a nutshell, (via Bloomberg): Deutsche Bank CEO Christian Sewing is pulling back from catering to risky hedge-fund clients, i.e. running a prime brokerage, as he attempts to radically overhaul the troubled German lender while BNP CEO Jean-Laurent Bonnafe wants to expand in the industry. A deal of this magnitude would be a stark example of the German firm’s retreat from global investment banking while potentially transforming its French rival from a small player in the so-called prime-brokerage industry to one of Europe’s biggest.
Of course, publicly telegraphing that DB is in dire liquidity straits and needs an in-kind transfer of its prime brokerage book would spark an outright panic, and so instead the story has been spun far more palatably, i.e., "BNP is providing “continuity of service” to Deutsche Bank’s prime-brokerage and electronic-equity clients as the two companies discuss transferring over technology and staff", according to a July 7 statement. The ultimate goal of the talks is for BNP to take over the vast majority of client balances, which are slightly less than $200 billion currently.
There is just one problem: nothing is preventing those clients who would be forcibly moved from a German banking giant to a French banking giant from redeeming their funds. And that's just what they are doing. Or rather, nothing is preventing them from moving their exposure for now , which is why they are suddenly scrambling to do it before they are suddenly gated.
Which is why the final shape of the deal remains, pardon the pun, fluid, and it is unclear how it will proceed, facing a multitude of complexities, including departing clients.
In an attempt to stop the bank run, BNP executives are meeting with U.S. hedge-fund clients this week to convince them to stay following similar sit-downs with European funds last week, Bloomberg sources said.
 
MHz
#13
https://www.zerohedge.com/news/2019-07-17/rise-insanity
But not only are majority solution impossible to get nobody even wants to even talk about them. Why? Because they involve pain. Voters don’t want to hear pain. Hence all you hear is free money. Tax cuts in 2016. Now we hear free college, health care and debt forgiveness for 2020 and who knows maybe more tax cuts.
Nobody wants to campaign on pain. I get it. But does anyone really think solving the structural problems that are behind slowing growth after 10 years of monetary stimulus are easily solvable?
Heck, they may not be solvable at all, hence it’s easier to create a political climate of hate, division, distraction and outrage.
Everybody talks about the outrage of the day, it’s a hyped up atmosphere by design. Because the architects of the conversation know the truth, and that is: As long as people are distracted by outrage, fear, anger and emotion they will not think about how the system is actually utterly screwed.
Debt ceiling? Nobody takes it seriously and the supposed enemies labeling each other currently as racists and socialists will suddenly find a solution and compromise to raise the debt ceiling. They always do. It’s always drama, and talk and hand wringing, but it never means anything.
Remember fiscal conservatives? They only exist when they are not in power. Nobody really wants to do anything but offer free money in one form or another. On either side.
In debt we trust:

But apparently central bankers are getting a sense that they can’t do it alone, that they need help from the politicians :
Central Bankers Are Sick of Rescuing the World Economy Alone
“Global central bankers are again in the driving seat when it comes to propping up the world economy, but many are demanding governments join them in the rescue effort.
Amid slowing global growth, the Federal Reserve, European Central Bank and perhaps even the Bank of Japan are all set to ease monetary policy in coming months. But with less room to act than in the past, their leaders are telling politicians they will need to act if a downturn takes hold”.
Be clear their solution is to add more debt. That’s it. Stimulus. Because without stimulus nothing works.
Cause we really need stimulus as trillion dollar market companies such as $MSFT are going parabolic:

Nobody is talking about structural solutions. Not the politicians, not the voters, not the central banks.
You know when structural solutions will be discussed? When it’s too late. When the next crisis, crash, depression, whatever you want to call it, will force people to wake up and force them to come together and actually look at the problems. This will not happen now, not with this lot, and not with markets high, unemployment low, and central banks ready to throw free money around again.
No, central banks are now the impediment to progress, they are not only bailing out markets, but they are extending a license to politicians, a license to do nothing, but add more debt.
And that is the rise of insanity.
 
Danbones
+1
#14
Zero or less interest on savings is theft - even worse than taxes
 
MHz
#15
The only solution never mentioned is to fire the bankers and take the money back they 'mishandled'. The Nuns at the RCC would make a good replacement as long as the Priests were just Gardners.
 

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