iBankCoin

And Now Germany’s Second Largest Bank, Commerzbank, is Under Pressure

Commerzbank announced they were culling 20% of its workforce, or 10,000 people, and will stop paying those pesky dividends, in an effort to restructure.

They’re taking a charge of $1.2b, citing a deleterious loan environment and negative ECB interest rates, as well as digital banking, as the root of all evil for them.

Compared to Deutsche Bank’s generous 10% cut in their workforce, the managers at Commerzbank look like true assholes.

The shares are off by 3% today and more than 45% over the past year.

cbk

Related: Zerohedge is out with an article that states there is a contagion of sorts, a nascent zombie apocalypse forming in Europe, as it pertains to Deutsche Bank.

Tyler states:

“Storm in a teacup” this is not.

While global markets remain calm(ish), distracted by OPEC headlines, US election ‘entertainment’, and Middle East proxy wars, the reality is, something very ugly is accelerating in Europe. With the collapse of the “most systemically dangerous bank in the world” we should hardly be surprised, but Deutsche Bank’s crash is being shrugged off by average joes on mainstream media… and besides, the central banks will save us, right?

Well, Deutsche contagion is spreading… rapidly.

Since Deutsche’s recent highs, the short-end of the EUR-USD basis swap curve has collapsed…

He then, ever so graciously, offered everyone some pornographic charts, proving that counter-party risk hedging is in fact soaring.

20160928_basis_0

20160928_basis2_0

20160928_basis3_0

Enjoy.

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26 comments

  1. dragun

    Spoke with a consultant who has worked on sovereign debt restructuring and such. He figures the CBs may have tried to paper something over in the last 9 mths or so. He sees cracks that should have opened up but not yet. Maybe its these crazy German banks that will bring it to a head?

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  2. jts5362

    This time is different? Everyone is bearish and been bearish for the entire 2016, even myself. This market goes up.

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  3. jts5362

    *crashes tomorrow*

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  4. wolfdaddy

    I think there will be a large drop but not yet. Maybe after trump gets elected or maybe a Jan ass raping. Goog Apple FB etc need large move blow off tops IMO before it starts

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  5. en1gma

    AMZN hitting $1,000 share is my blow off top prediction. Only another 25% uptick to go.

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  6. Marc David

    Is this another opportunity to get a cheap flight to Europe and travel?

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  7. paradox

    Grab some popcorn. Looks like Fly’s warnings are quickly making grounds on Option Addicts recent knife catching ($FIT $DB). (the dichotomy in headlines at IBC have been as entertaining as anything financially related for a while now).

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    • zuul4

      +1

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    • the_wolf

      not much profit in a dogshit trade of DB, down another 8% today,……..
      knife catching takes balls, and thats something,
      but playing with dogshit, thats entirely different,
      EOY tax loss selling will further decimate DB, just wait until Nov/Dec,
      and wait until they announce an offering,
      there will be blood,
      unless german government miracuously comes to the rescue,………

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  8. t.c.

    They’re a little panicky on Fast Money today. $DB

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  9. john_galt

    Meh, zeroedge

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  10. awanka

    The Ark continues to sail impervious to all forms of damage, Mr. Fly.

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  11. roundwego

    die you piece of shit market.

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