Shares of DB are off to record lows again, down about 60% for 2016. Counter party risk is soaring, as investors seek protection against a massive credit event at Europe’s giant piece of shit bag holder of a bank.
Courtesy of Zerohedge, I give you the obligatory Lehman vs Deutsche Bank chart.
And to solidify this narrative, CDS are blowing, mind you, the fuck out.
Credit-default swaps on the German lender’s junior bonds jumped as much as 37 basis points to 536 basis points, the highest level in CMA prices going back to 2007. The lender’s 1.75 billion euros ($2 billion) of 6 percent additional Tier 1 bonds, the first to take losses in a crisis, fell about 2 cents on the euro to a more than seven-month low of 71 cents, according to data compiled by Bloomberg.
“The selloff is gathering its own momentum,” said Suvi Platerink, a senior credit analyst at ING Bank NV. “It’s a reflection of limited market liquidity and a very small number of buyers around.”
Thoughts?
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Eerie comparison. The Dow should rally 2,000 points from here.
DB gets nationalized by year’s end. look for other exogenous shocks to bring this ponzi house of cards tumbling down..
A second LEH will not be allowed.
ROSIE O’DONNELL
I wonder who they will blame it on?
Credit Suisse not looking so good either
Wells Fargo market cap = 225 Billion
Deutsche Bank market cap= 16 Billion
Suntrust Bank market cap = 21 Billion
Good luck DB
Good piece on Bloomberg about Merckle and DB. This could further create havoc within the EU. Not rescuing DB is not an option. But rescuing DB while telling the Greeks and Italians to fuck themselves and make the little people eat their banks’ losses is going to reveal the underlying structure of the EU – a union by and for the betterment of Germany.
Bonus point irony: DBs fine by the U.S. for its fraudulent fuckery before the financial crisis now threatens greater risk of yet another financial crisis.
Bullish!!!
Buy WFC