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.
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%.
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.
It’s drivel like this that makes this man tantamount to a circus clown offering stock tips, while flying mid-air out from a carnivale cannon. Cramer lays out three infantile scenarios, all of which end with ‘business as usual.’ His best advice is to may expect downside, but to buy Pepsi.
These are some of the most insane public comments by a US diplomat I’ve ever seen. Russia’s involvement in protecting the Assad regime and to destroy ISIS has gotten the Obama administration in such a frenzy that they’re now sending out their shit talkers to make veiled threats to Russia.
Is this wise foreign policy, sabre rattling with a country who has 10,000 ICBMs? This is fucking stupidity at the highest levels.
“Extremist groups will continue to exploit the vacuums that are there in Syria to expand their operations, which could include attacks against Russian interests, perhaps even Russian cities. Russia will continue to send troops home in body bags, and will continue to lose resources, perhaps even aircraft,” Kirby told reporters at Wednesday’s press briefing, adding that if the war in Syria continues “more Russian lives will be lost, more Russian aircraft will be shot down.”
Maria Vladimirovna Zakharova, Director of the Information and Press Department for Russia, said in a Facebook post “And those [acts of terrorism] will be perpetrated by ‘moderate’ [Syrian opposition groups]? Just the ones that Washington has been unable to separate from Al-Nusra for as long as six months? Don’t you think that such ventriloquism about ‘body bags,’ ‘terrorist attacks in Russian cities’ and ‘loss of aircraft,’ sounds more like a ‘get ’em’ command, rather than a diplomatic comment?Is Kirby actually threatening to use the same “moderate” jihadists that the Obama administration has funded and armed to kill Russian troops, down Russian planes and slaughter Russian citizens in their own country?”
What the fuck is going with this country and why are we supporting ISIS in Syria?
