Deutsche Bank – Understand what is happening in 5 mins

Graph is always easiest to understand

In order to facilitate easier understand on what is happening… Image is always the best to start with

  1. Basically Deutsche Bank Stock Price have a high probability to head the same direction as Lehman before the Crash/Filing for bankruptcy (2007-8).

  2. Currently have low liquidity (very low cash) & Failed twice on the bank stress test  (basically how banks would to fare in severe economical conditions)
  3. Isn’t a big bank suppose to be “Self-Sufficient / Safe”
    • They have a Total Derivative exposure of 54.7 Trillion Euros
      • 4-5 times the amount of Euro Zone GDP
      • That’s why everyone is concern if the banks file for bankruptcy
        • Imagine making a lose of 10% of that amount…. yup
  4. Why isn’t anyone helping them out???
    • The cost of insuring them is getting more expensive (would you try to save a dying cancer man at a age 100 – a bad analogy but hopefully you get what I meant)
    • Plus they failed many regulations
      • They have been fine by the Department of Justice (DOJ) for more than 5.4 Billion Euros

Conclusion : Deutsche Bank holds a very strong risk to every company due to it’s many “strategic” relationship and business doings… Countries included… Should we fear or should we gear up and be prepared for a buying spree??? 🙂

P.s whatever that is shared here are informations paraphrase from Reuters, Bloomberg, Zerohedge…. Hopefully it is more digestible


2 thoughts on “Deutsche Bank – Understand what is happening in 5 mins

  1. Deutsche Bank is a very big bank, biggest in Europe. It also has biz connections in Singapore. When it goes down, I’m not sure our Govt’s guarantee of up to $50k applies to the following:
    1. Savings and FD
    2. Current account
    3. Other investment instruments such as bonds…



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