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Deutsche Bank

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Deutsche Bank

Deutsche Bank is one of the biggest banks in Germany and there have been dramatic falls in it's share price due to lack of confidence in the bank.

Merkel has said the government will not bail them out which is likely to lead to further falls in the share price.

Why is it that the UK government stepped in and saved several of our banks from going under but the German government is taking a different approach.

And what would be the consequence of this bank going insolvent ?

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Re: Deutsche Bank

DB are under the threat of a $14 Billion fine in the USA  because of mis-selling by their American arm (mostly ex-Bankers Trust managers) and are getting whacked by the zero interest rate from the European Central Bank. The failure of DB would lead to the downfall of Merkel, so expect a deal to be done to finance the Bank and pressure on the USA to pull its horns in and not do another BP.

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Re: Deutsche Bank

Funny how the USA made a load of german gold vanish and now they're hitting them monetarily too.

As to the original question, the UK government is corrupt for a start, it always likes to look out for the rich - you know the billionaire investment bankers who would go screaming and crying that its all unfair if they were bankrupted overnight.

Then there is our out of control housing market - which would see hundreds of thousands of mortgages cashed in by the banks overnight in an attempt to save themselves - forcing thousands of well off families back into the dog poo pile because the UK government refused to be sensible about the housing market. Even with the constant influx of immigration they couldn't keep the property values that high if the banks went under.

To be honest though, as much as I despise our system that looks after the rich while demanding the poor drive themselves into an early grave, I'm not quite so sure the german government have got it right. If that bank goes under it could screw with the rest of europe and the rich will start getting even more paranoid about loosing everything they others worked hard for. Though lets face it, the UK government will always spend money on the rich instead of the poor where it's needed.

Who was that billionaire building a power station somewhere with the government funding it for him?

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Re: Deutsche Bank


gleneagles wrote:

Deutsche Bank is one of the biggest banks in Germany and there have been dramatic falls in it's share price due to lack of confidence in the bank.

Merkel has said the government will not bail them out which is likely to lead to further falls in the share price.

Why is it that the UK government stepped in and saved several of our banks from going under but the German government is taking a different approach.

And what would be the consequence of this bank going insolvent ?


 

When the then Labour government stepped in they were following the lead of the US in attempting to stabalise the world financial markets. To a degree it back-fired because they adopted the wrong strategy.

 

In the UK all our banks were forced to increase their reserves as a hedge against any future volatility and this should prevent our banking system from another collapse.

 

I wonder if merkl has the authority to step in even if she wanted to. Isn't this a matter for the ECB now Undecided

 

 

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Re: Deutsche Bank

There are a number of interesting points made in response to the OP.

If it is correct German gold disappeared via the US i wonder if they kept it as compensation for what the last war with Germany cost them ?

If banks had been allowed to fail the rich would have lost money but many have investments, often tax free, in various places so it would have been the average person who would lose with nothing to fall back.

The government of the day would also lose if they failed to step in and rescue the bank and whichever country that bank was in providing it was a major bank there is every chance no bank in that country would ever be trusted again.

The effect of a major German bank going bust would have major repercussions on the EU

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Re: Deutsche Bank

another good reason for voting Brexit Cool smiley

 

Hopefully our government will keep us clear of any bailout deal organised by the ECB

http://www.express.co.uk/finance/city/714848/Deutsche-collapse-could-bury-eurozone-warn-experts-as-s...

Commerzbank is also in difficulty

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Re: Deutsche Bank

@gleneagles you make some sensible points in your post.

 

What German gold are we talking about?

 

The small investor would be badly affected in a bank collapse with little chance of survival. Look at the panic some years ago at Northern Rock. Many individuals would have been ruined had the government not stepped in.

 

 

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Re: Deutsche Bank

The story goes that the Germans hold a lot of their gold deposited in the Federal Reserve/Fort Knox to stop the Russians from hopping over the border and stealing the gold bars. In recent history the Germans were a bit concerned about stories that the gold held in Fort Knox is not all that it should be, so they asked the USA to return their gold bars. The outcome was the USA told the Germans that they can't have the physical gold, but not to worry because it was all safe and they'd produce a certificate to that effect.

The rumour is the Chinese and Indian previously retrieved some of their gold bars stored by the USA only to find later some of the bars were tungsten metal coated with a layer of gold. As tungsten is almost the same density as gold it is impossible to spot the difference by weighing the bars. Tungsten is about one eightieth of the value of gold. The Indian and Chinese governments were annoyed but could prove nothing because they'd accepted delivery without fully checking.

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Re: Deutsche Bank

Don`t really understand what all the fuss is about.. because... it would seem that Deutshe Bank, has "loads a loot" in reserve,....

 

according to Frau Merkel...

 

( quote from the linky by Peter Loftus )

 

German Chancellor Angela Merkel said the German people would not bailout the Bank and that it had the funds to deal with the gap in dirivitives.

 

(unquote)

 

However, I don`t know what "dirivitives" are in this context... Huh

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Re: Deutsche Bank

I wouldn't worry, not many bankers understand derivatives.

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Re: Deutsche Bank

@AlaricAdair Hmm.. !    Not sure about that response...... are you implying that I am a banker  ? ? ? Shocked

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Re: Deutsche Bank


shutter wrote:

..... are you implying that I am a banker  ? ? ?

 


Moi?  Honanistly no. Wink

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Re: Deutsche Bank

An explanation of derivatives.

 

Derivatives

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Re: Deutsche Bank


AlaricAdair wrote:

The story goes that the Germans hold a lot of their gold deposited in the Federal Reserve/Fort Knox to stop the Russians from hopping over the border and stealing the gold bars. In recent history the Germans were a bit concerned about stories that the gold held in Fort Knox is not all that it should be, so they asked the USA to return their gold bars. The outcome was the USA told the Germans that they can't have the physical gold, but not to worry because it was all safe and they'd produce a certificate to that effect. 


Prior to that they also asked to physically see and inspect the gold inside the vaults. The request was denied.

Can't believe that artmo is learning about money and gold from me... lol

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Re: Deutsche Bank

Read this article and you'll see it's not all it seems:

 

Gold