Whalen Fawns Over Deutsche Bank in CNBC Interview, Places Blame for Share Price Decline on Politicians

Bear in mind, this was the guy who said Bank of America needed to ‘declare bankruptcy‘ in order to save itself. He was often interviewed by CNBC and BBG, offering a grisly outlook for the banks. He had quite the penchant for prognosticating doom across financial markets. I must admit, after seeing the interview linked below, I was somewhat surprised by the Whalen I saw. He appeared to be tripping over himself, trying to make excuses for Deutsche Bank — blaming the whole ordeal on politicians talking down the stock. He emphatically said Deutsche Bank was a ‘good credit’ with a solid business and was well diversified. When asked about a potential equity raise and how dilutive it might be, he avoided the question and said it didn’t matter — then he delved back into the politicians causing DB to decline conspiracy theory.

Already knowing the answer, I asked him the following question on Twitter.

Full disclosure @rcwhalen : is $DB a client of yours?

— The_Real_Fly (@The_Real_Fly) September 30, 2016

Whalen heads up a bond rating agency, dubbed Kroll (KBRA) — founded in 2010 and recently sold to a private equity firm named Wharf.

No answer from Mr. Quadruple chin, thus far.

I am sure it was all a big mistake. The pack of wolves at the UN love Trump.

Here was the tweet.

And here is their explanation.

Via Politico

The tweet, published at 9:14 p.m. ET on Thursday, urged American expats to share a voter registration tool on the website of the activist organization Avaaz that states, “U.S. Citizens abroad could defeat Trump … if they voted.”

The Web page, titled “The October surprise that will end Trump,” allows users to sign up for help registering to vote in the Nov. 8 presidential election and encourages them enlist their friends as well.

“At a time when Trump is trying to divide us, we could help defeat him if we all share this page with EVERYONE. Let’s reach every US voter abroad,” it reads.

Indeud. Trump will be defeated by hook or crook.

One could only hope for a major catastrophe to finally bring forth an end to capital markets — thrusting us into tribes to conduct civil war. But, barring some immediate fuckery of the first magnitude, things are looking bleak for the bear team.

Here are the seasonal returns, by month, for the S&P 500.

For those of you taking the Exodus free trials today, we provide you with seasonal data for every stock, ETF, sector, and industry.

That’s not to say something can’t go wrong. October is filled with market dislocations and December is usually a snoozer. If you’re a bear, you need to be mindful of November, for the Turkey Gods rarely miss a ripping bull market into national festival day.

For the past two months, markets have traded down — but to a very small degree. While the general indices traded flat to slightly lower, a sundry of small cap and high beta shares shot higher, diverging from the market. This is a sign that risk is still being accepted, even embraced — in spite of the negative backdrop.

I will repeat this indelible point until I am blue in the face — because it’s a fact and not something up for debate. Everything that you see and hear about the market is a fiction. The CNBC-FOX-CNN-BLOOMBERG propaganda machine rarely gives investors a true glimpse into how rigged the market is. They might interview a guest who says it, who is then ridiculed by one of their permanently bullish ‘traders’ — making the one telling the truth appear to be a lunatic. And if markets go up and people make money, that’s great. To that end, just know that if it weren’t for the central banks fixing yields and propping up asset prices, none of this would be possible.

How long can it last? Apparently, this has never been tested before, so that answer remains a mystery.

It was all for show, apparently. The AFP has leaked a rumor that stating the DOJ and DB have agreed upon a settlement of $5.4b, significantly below the fictitious number of $14b originally put out there.

With $6.2b in reserves for this claim, the big Germany idiot bank just cut themselves a sweet heart deal — which is sending the shares skyrocketing higher.

No wonder why the CEO and the German govt were so relaxed over the situation. The fix was in the whole time. Shorts ate it up and are now being devoured whole.

It took big balls to get long or short this trade. Markets are celebrating this ‘victory’ with a +180 showing.

I’ve never seen so many excuses for the share decline in a stock. Some are blaming the recent drop on hedge fund conspiracies, to the German bank merely having a bad week, to the DOJ lack of transparency on the fine that will be agreed upon, to ordinary people simply responding to memories of Lehman.

A very common statement out of the propaganda networks of CNBC and Bloomberg is that Deutsche Bank isn’t Lehman and how regulators fixed the risky stuff and there’s nothing to fear.

Here are the top headlines on CNBC right now.

What they’re not telling you is that Deutsche Bank is the fucking garbage can of Europe. All of the Greek, Italian, Spanish and a sundry of oil debt is festooned on their balance sheet. Without the ECB fixing markets, DB would be at zero.

Nonetheless, markets have rejoiced and accepted the media narrative and have shot higher by 150 — led higher by DB.

After listening to all of the guests on CNBC and Bloomberg, I am convinced the world has gone insane. The prevailing wisdom amongst some of the top minds in finance is that Deutsche Bank isn’t Lehman. Ergo, everything is fine. Feel free to run about naked throughout the streets — but just don’t buy COCO bonds. One of the gents on CNBC said DB was a great long term buy here and that this ‘little bear raid’ was long in the tooth and about to end.

That being said, yields for Deutsche Bank’s COCO bonds are now upwards of 13% and prices are less than 70.

The euro is materially weaker vs the dollar, off by 0.5%. Aside from that, DB is indicating up in the pre-market, in spite of it still trading down by 2.8% in Europe.

A calm normality has imposed itself on markets. I would expect nothing less than a rally, coupled with commentary telling investors that Deutsche Bank’s problems are overblown and that once the DOJ lowers the fine, all will be well.

A great man once said ‘Liquidity is just great, until it isn’t anymore.’

A few hours of shut eye and voila, like it never happened. Losses have been halved in DB, but Commerzbank is still trading near the session lows. But no one gives a shit about them.

Futures are flat. Bond yields around all of Europe have normalized, closing the deficit between German and Italian. And, lastly, crude is barely off now.

That was the shortest panic ever. Back to business as usual.

This isn’t a joke people. Laugh and masturbate all you want over a rigged market dominated by explicit central bank schemes, but this is the game changer. The collapse of Deutsche Bank is underway and it’s having a profound effect on other banks too, like Commerzbank and Soc Gen, just to name a few. I can’t even sleep right now.

Bloomberg's @MooreMichaelJ explains why there's concern about Deutsche Bank https://t.co/tC3RidtcI0 pic.twitter.com/KueEt1xwAH

— Bloomberg TV (@BloombergTV) September 30, 2016

Shares of Deutsche are collapsing, now off by 9%.

Germany’s second largest bank, Commerzbank, is collapsing — down 7%.

Soc Gen is off by 5%. You get the picture.

German and American yields are dropping like a stone, while peripheral Europe rise. This is a huge issue that will become front page news if it should continue.

Futures are down over 100 and Europe is down more than 2%.

They’re just so enlightened.

Arab News is Saudia Arabia’s first english newspaper, founded in 1975. After U.S. lawmakers overrode Obama’s vetoe of the JASTA bill, they lost their shit — apparently.

The bill is Justice Against Sponsors of Terrorism Act, typically referred to as JASTA.

The House of Saud translation is Just Acted Stupidly Towards Allies.

Obviously, they believe the House will reject the bill and uphold the Obama veto.