Opinion: Deutsche Bank in dire straits | Opinion | DW.COM | 27.09.2016
FTSE 100 skids towards 6,800 as Deutsche Bank's woes worsen
Could Deutsche Bank be the next Lehman Brothers?
Jordan Hiscott, Chief Trader at ayondo markets weighs in on the debate as Deutsche's shares hit a new low.
“Today Deutsche Bank has fallen to a record low of €10.18, with negative sentiment being fired at it from various avenues. What started as a fine from the US Department of Justice of around $14bn has snowballed into a run on the bank , with serious questions now being asked about its capital.
“Previously regarded as the premier bank of Europe , shares of Deutsche Bank are down 53pc on this year alone, which is remarkable given that over the same period the DAX has dropped by just 1.4pc. This is beginning to feel like a crescendo period and if they are having funding and capital requirement issues, this could have major consequences for various Spanish and Italian banks. The question on many people’s lips now is: could this be the next Lehman Brothers?
Merkel hopes 'temporary problems' at Deutsche Bank can be solved
Back to Deutsche Bank. German Chancellor Angela Merkel has told reporters in Berlin that she hopes the problems at Deutsche Bank can be solved.
The comments come a day after the German Lender said it would solve its problems itself - adding that it needed no state aid with a $14bn US Department of Justice claim, relating to mis-selling mortgage backed securities.
When asked during the news conference in Berling about Deutsche Bank and if the government was considering assistance for the lender, Chancellor Merkel said:
"I only want to say that Deutsche Bank is a part of the German banking and financial sector. And of course we hope that all companies, also if they face temporary problems, can develop in the right direction.
"I don't want to comment beyond that."
Deutsche Bank said on Monday it had no need for German government help.
(Keep your fingers crossed Merkel steps in to save Deutsche Bank otherwise it could get ugly
Those who saw "the Big Short" or read the book know about Deutsche Bank)
http://www.nytimes.com/reuters/2016/09/27/business/27reuters-germany-banks-bundesbank.html
Political support for Europe's oversized banking sector must stop, a top official at Germany's central bank said on Tuesday, comparing banks to dinosaurs facing a threat of extinction.
Concerns about German banks are mounting, with top lender Deutsche Bank forced to reassure investors this week that it did not need government support to cover a possible U.S. fine and about low interest rates eating into its profits.
Andreas Dombret, the Bundesbank board member in charge of supervision, said banks' deficiencies should be tackled and the sector should be allowed to shrink further.
"Political support for the banking sector must finally come to an end - something that unfortunately I've only seen to a limited extent," he told an audience in Vienna.