patrick.net

Nein! Pay debts, ze deadbeats. Kiene mehrheit fur we greechen, aber toten bailouten fur die DB.

Welcome to neoliberalism, aka socialism for the rich.

AfD just got 10 pts higher.

Frau Merkel, ve don't kennen varum der extremes sin blitzkrieg der elektons. Ven ekonomist no bist richtig?

Toten ekonomisten sprachen set uns ist korrect! Der volk ist Dumkopf und no appreciaten uns perfekt policies.

Can't they just borrow more money at a negative interest rate from the ECB and not lend it out? Magic money..... they pay you to take on loans that you never intend to repay.

Violating the laws of finance is easy if you just ignore it.

I do not understand why this caused the stock market to take a dump today

Booger says

I do not understand why this caused the stock market to take a dump today

Sheer panic. Wall Street has not forgotten the crash of 2008 led by banks. IMHO.

The underlying causes of the great recession were never fixed.

thunderlips11 is deplorable says

The underlying causes of the great recession were never fixed.

The toxic loans no longer exist. But our economy still stagnates at a low GDP. We need capitalism to spark a rebound.

Strategist says

The toxic loans no longer exist.

I beg to differ. Some not insignificant portion of these bad loans (RMBS bonds) still exist. Guess where they are? Well, the FRB "bought" lots of them during QE1, QE2 and QE3 (ending in 2014). And how did they "buy" them? Not by actually paying anything for them, but rather by accepting said bad bonds as "reserves" of the banks that "sold" them to FRB. That means those bad bonds are now part of the collateral underlying our interbank debt settlement system. So, for example, if Deutsche Bank experiences a slow moving run on the bank this week, the transfers to other banks take the form of the other banks getting ownership of what was previously the reserves allocated to DB. And part of those reserves consist of crappy bonds.

I think it is time for Onslow to make an appearance again: Oh, NICE!

www.youtube.com/embed/THf-zR0DiUo

Wow! So the DoJ changes it's role in life and starts bailing out banks.
The original fine of $14bn (which is almost the amount of the banks market capitalization of $16bn) is now rumored to be $5.4bn.
It looks like Deutsche has about $4bn in 'cash' and $2T in assets (58% of Germany’s GDP).
(Guess how much Deutsche will eventually pay?)

JP Morgan is $100bn, Deutsche is only $16bn (market cap). Yet they can basically call the shots with the DoJ when it comes to how much the fine is going to be.

REMINDER: This fine was levied for the mis-selling mortgage securities in the US. (So we're still digging out of that shit storm)

ALSO: The DoJ has the balls to end a company with fines... Like it did with Arthur Andersen LLP during the Enron debacle. looks like those days are over.

Deutsche was previously exposed to $72 trillion of derivative financial instruments almost a quarter of total global exposure.
This has dropped to $46 trillion but is still HUUUGE. JP Morgan is exposed at $41bn.

Manipulation, manipulation and more manipulation.

Merkel told CEO John Cryan to 'spin on it' and there would be no bail-out, then leaked it because she's going into election mode. (Showing she's tuff)
Other sources say Germany can't afford DB to go bust. And a bailout plan is being prepared and would become effective if the bank needed additional capital but could not raise it in the markets.

So it would be a bailout on the down-low. They just won't call it a bailout.

IMHO Deutsche is fucked. They just don't know it yet. They may get a bailout from Germany, but things are incredibly tight at the moment, there just aren't that many ways for banks to make money, so it will slip and slip and then the short-term financing will get spooked and turn off the taps.

Then it's over baby. Period.

www.youtube.com/embed/u4hfqivjSf0

Almost certainly the fine doesn't have to be paid by next Tuesday, payment could be spread over many years.

With all the money the Germans are squeezing from Greeks, this should be no problem.

PS Instead of Rapefugees, if Germany really needs unskilled/semiskilled workers, there aren't enough peeps in Hungary, Eastern Poland, Greece, etc. to do it?
Hell, you could have Greek Guest Workers and deduct 5%-10% of their wages to pay off Greek debt, create a win-win for Greek Unemployment and Debt Repayments and alleged (though I doubt it) shortage of unskilled workers in Germany.

junkmail says

The original fine of $14bn (which is almost the amount of the banks market capitalization of $16bn) is now rumored to be $5.4bn.

There is a little "fine" match going on between Europe and the US.
- US fines French bank BNP Paribas $9 billions
- US fines French oil company Total $250 millions
- US fines French company Alstom $772 Million (note: these are often for "crimes" not committed in the US)
- US fines VW $14 billions for lying about emissions.
- Europe gets pissed and... fines Apple $14 billions.
- Which brings us to... US fines DB $14 billions...

Now Merkel gets pissed and decides to make a little bluff with Obama: she announces Germany will not bail out DB. (after all if DB was going down, Germany would certainly not be the biggest loser around).
Next the market starts tanking, Goldman calls Obama - who folds like a cheap suit - and the fine is reduced to $5.4 billions

I remember when I could get four marks for a dollar when I was stationed in Germany. (Early 1970's)

Heraclitusstudent says

There is a little "fine" match going on between Europe and the US.

That's an interesting theory, I wonder if it is true...could be...

justme says

I think it is time for Onslow to make an appearance again: Oh, NICE!

I'm a fan of KUA. Rose can spend the night with me whenever she likes.

www.youtube.com/embed/8znB2UF9d2c

justme says

Heraclitusstudent says

There is a little "fine" match going on between Europe and the US.

That's an interesting theory, I wonder if it is true...could be...

I don't guaranty there is logical connection but these are definitively events that happened in that order. I don't mean these companies didn't commit any crimes, but could prosecutors focus on foreign firms?

As far as a country deliberately targeting foreign firms, I'm not the only one thinking it could happen: http://fortune.com/2015/02/11/u-s-companies-are-being-targeted-in-china-say-u-s-companies/

I wouldn't be surprised if Facebook or Google takes it on the chin in Europe next.

More news today...
Indictment handed down by German Regulator
Deutsche Bank mis-marked 37 deals similar to Banca Monte dei Paschi (Italian bank) To cover losses.

Now reports coming out that the regulators have discovered over 100 more deals lending money without putting the loans on the balance sheet.
Deutsche Bank has announced that 1,000 jobs will be cut in Germany.
The move adds to the 3,000 job losses announced in June.

Will this lead to more fines? Who knows.

I'm just making sure we're watching this and not drawing stupid green frogs. Which is what I thought this site was all about.