Deutsche Bank needs a bold and swift restructuring

Financial Times/Editorial Board/1-8-2019

“Germany’s old national champion is looking systemically dangerous. [Its] chief executive insisted in a recent interview with the German tabloid Bild that Germany’s biggest bank was ‘not at risk of a takeover’. He was probably right. No prudent buyer would take on Deutsche Bank in its current state. Over the past three years this once towering global bank was found to be built on sand — with insufficient capital, excessively high-risk assets and a rotten culture.”

USAGOLD note:  This article goes on to detail the worsening problems for Germany’s largest bank – financial as well as legal.  Could Deutsche Bank become Europe’s Lehman Brothers?  Seems like Bundesbank might be faced with the same tough choice the Federal Reserve was forced to make in 2008 – bailout or bankruptcy?  Bundesbank consistently has expressed loud public opposition to government or central bank bailouts. It will be interesting to see how it reacts to the DB situation if  push comes to shove.

Image:  Deutsche Bank stock certificate

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