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Deutsche Bank Expects To Lose €6Bn In Just Three Months

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11918257/Deutsche-Bank-expects-to-lose-6bn-in-just-three-months.html

Deutsche Bank warned it would post a net loss of €6.2bn in the third quarter and that dividends for the year may be scrapped.

The bank said it would book a charge of €5.8bn in impairments, "largely driven by the impact of expected highly regulatory capital requirements... as well as current expectations regarding the disposal of Postbank".

The group was also setting aside €1.2bn to meet litigation costs.

Deutsche's shares fell 3.6pc in early trading.

The bank is embroiled in the Libor-rigging scandal and is being investigated by Swiss authorities for suspected price fixing on the precious metals market.

Amazing how quickly you can lose money....

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Max Keiser has been promoting his view that Deutsche is, essentially, bankrupt due to its derivatives exposure for a long time now

I don't know if it is true or not, likely it isn't possible to qualify the judgment properly as the derivatives will be too complex to understand really

But nothing would surprise me with any of the big banks these days

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I am very skeptical of these "rallies" that seem to follow awful news, both economic data in the US and Glencore/Deutsche Bank, it smacks of intervention. Although in retrospect it makes some sense. Because the debt, leverage and exposure that some institutions have now is so much bigger, the fallout from the 50% crash in 08/09 is now reproduced by a smaller crash, perhaps 25%, and the Fed cannot afford to wait for another Lehman to happen. I'd be willing to bet QE4 is already happening in the markets right now, and any large institution that looks like it will push shares lower is being "supported" to attempt to engineer us out of what is obviously a global recession.

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I am very skeptical of these "rallies" that seem to follow awful news, both economic data in the US and Glencore/Deutsche Bank, it smacks of intervention. Although in retrospect it makes some sense. Because the debt, leverage and exposure that some institutions have now is so much bigger, the fallout from the 50% crash in 08/09 is now reproduced by a smaller crash, perhaps 25%, and the Fed cannot afford to wait for another Lehman to happen. I'd be willing to bet QE4 is already happening in the markets right now, and any large institution that looks like it will push shares lower is being "supported" to attempt to engineer us out of what is obviously a global recession.

Pretty much sums up my thoughts too.

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I am very skeptical of these "rallies" that seem to follow awful news, both economic data in the US and Glencore/Deutsche Bank, it smacks of intervention. Although in retrospect it makes some sense. Because the debt, leverage and exposure that some institutions have now is so much bigger, the fallout from the 50% crash in 08/09 is now reproduced by a smaller crash, perhaps 25%, and the Fed cannot afford to wait for another Lehman to happen. I'd be willing to bet QE4 is already happening in the markets right now, and any large institution that looks like it will push shares lower is being "supported" to attempt to engineer us out of what is obviously a global recession.

The central planners might be able to hold equities up for a while by buying futures cheaply but if the losses start to cascade through the derivatives chain then only a strategic intervention involving all players will save the day. It took a colossal effort to hold markets together when LTCM blew up, a relative minnow. It's inconceivable that a similar operation could be launched to rescue something the size of DB, especially given the extent of its non-bank affiliations and subsidiaries.

Edited by zugzwang

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..with all the rigging ..should they and others continue to hold a licence to Bank....Government action required.... :rolleyes:

Edited by South Lorne

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Interestingly it was a recent Deutsche Bank report that seems to have suggested the possibility of a "controlled demolition" of the stock markets.


http://

www.zerohedge.com/news/2015-09-05/europes-biggest-bank-dares-ask-fed-preparing-controlled-demolition-stock-market

Edited by billybong

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Max Keiser has been promoting his view that Deutsche is, essentially, bankrupt due to its derivatives exposure for a long time now

I don't know if it is true or not, likely it isn't possible to qualify the judgment properly as the derivatives will be too complex to understand really

But nothing would surprise me with any of the big banks these days

I'm inclined to agree.

deutsche bank is the financial volkswagen moment.

the US ,wrt have actually been rather kind to germany so far. They could, quite legally, embargo ALL volkswagen sales in the country, until the faults have been rectified, and retrospective remedial work on vehicles already sold is completed.

that would take years and cost many,many Billions.

anyway,back to deutshce bank.

rumours vary wildy about the size of the derivatives exposure.

but it is believed to be between $2 trillion and $75 trillion.

even a halfway house between these two figures is frankly a terrifying prospect.

should this one go "live", then it's most certainly the end of the euro project.

Edited by oracle

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Deutsche Bank Junior Trader Mistakenly Paid Hedge Fund Client $6 Billion In "Fat Finger" Error

trader%20hand%20on%20face_2.jpg

"Instead of processing a net value, the person processed a gross figure. This meant the trade had “too many zeroes”, said one of the people."

And as everyone knows, "too many zeroes", is the technical term for you royally ******ed up.

It seems that someone has decided to help beat last months loss....

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