Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
"This loss, which is unrivaled in either Deutsche Bank history, or in other banks’ first quarter reports - was oddly left out of Deutsche Bank’s earnings report, and as BBG notes, "raises questions about U.S. regulators’ ability to have an accurate picture of a foreign bank’s operations. . ."
"This loss, which is unrivaled in either Deutsche Bank history, or in other banks’ first quarter reports - was oddly left out of Deutsche Bank’s earnings report, and as BBG notes, "raises questions about U.S. regulators’ ability to have an accurate picture of a foreign bank’s operations. . ."
the whole point of a bank being outside the US is to avoid regulation. In the 70's and 80's banks all over the world started loaning offshore dollars with no oversight or regulation. They like it that way
"This loss, which is unrivaled in either Deutsche Bank history, or in other banks’ first quarter reports - was oddly left out of Deutsche Bank’s earnings report, and as BBG notes, "raises questions about U.S. regulators’ ability to have an accurate picture of a foreign bank’s operations. . ."
the whole point of a bank being outside the US is to avoid regulation. In the 70's and 80's banks all over the world started loaning offshore dollars with no oversight or regulation. They like it that way
"This loss, which is unrivaled in either Deutsche Bank history, or in other banks’ first quarter reports - was oddly left out of Deutsche Bank’s earnings report, and as BBG notes, "raises questions about U.S. regulators’ ability to have an accurate picture of a foreign bank’s operations. . ."
the whole point of a bank being outside the US is to avoid regulation. In the 70's and 80's banks all over the world started loaning offshore dollars with no oversight or regulation. They like it that way
Probably also due to the war on drugs
I think the big drug money bank is HSBC , and Santander, and bank of America , well JP morgan obviously , Western Union is absolutely killing it but they are not exactly a bank.
Wells fargo would be on the list but they created a bunch of fake accounts for the drug kingpins and signed them up for phony credit cards car insurance policies and pissed those guys off. Stupid to alienate your best customers just to make some quotas but thats what warren wanted.
"Finally, the bank also said that the restructuring actions will include a workforce reduction of approximately 18,000 full-time equivalent employees to around 74,000 employees by 2022."
Gregory Mannarino gives a good interview with Greg Hunter on USAWatchdog concerning DB. He mentions that DB's bad debt will be parceled out to the other CBs and that a debt reset is coming.
It's not a good scenario for regular people.
Q: Are You Printing Money? Bernanke: Not Literally
3 year old headline posted by derryb from zerohedge: "What will the upcoming Deutsche Bank failure mean for gold?" Obviously: nothing .. Deutsche Bank will not be allowed to fail and will have absolutely not affect on PM's...
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
@OPA said:
3 year old headline posted by derryb from zerohedge: "What will the upcoming Deutsche Bank failure mean for gold?" Obviously: nothing .. Deutsche Bank will not be allowed to fail and will have absolutely not affect on PM's...
Tell that to the 18,000 former employees they just failed. Three years ago I posted the question (not a headline) "what will the upcoming DB failure mean for gold?" Your reply was "Not gonna happen." DB is now scrambling to survive.
We will soon know. Banks are dominoes in disguise. 2008 should have taught you that.
@OPA said:
3 year old headline posted by derryb from zerohedge: "What will the upcoming Deutsche Bank failure mean for gold?" Obviously: nothing .. Deutsche Bank will not be allowed to fail and will have absolutely not affect on PM's...
Tell that to the 18,000 former employees they just failed. Three years ago I posted the question (not a headline) "what will the upcoming DB failure mean for gold?" Your reply was "Not gonna happen." DB is now scrambling to survive.
We will soon know. Banks are dominoes in disguise. 2008 should have taught you that.
Why don't we look at your chart 3 years from now, since this is an old resurrected thread from 3 years ago, that predicted imminent doom & gloom at that time.
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
Lehman insider: why the bank could and should have been saved
The bank’s former chief administrative officer considers the argument for a bailout
Scott Freidheim
September 6, 2018
In 2008, the collapse of Lehman Brothers triggered a global financial crisis. A decade later, commentators are debating whether federal officials could have prevented the crisis by supporting Lehman as it did other banks soon afterwards. I was Lehman’s chief administrative officer on the day it closed its doors forever. Speaking as someone who was on the inside looking out, the answer is clear: Lehman could have and should have been saved. I realize that may sound self-serving. However, let’s consider the facts. Lehman was refused assistance, it was explained weeks afterwards, because it lacked the collateral to secure a loan from the US Federal Reserve — the Fed was therefore barred from providing assistance. Many of us first heard that explanation from the then-Fed chairman Ben Bernanke at the Economic Club of New York in October 2008.By way of context, Lehman had delivered record net revenues and earnings in 2007, giving it the second-best revenue and earnings growth in the industry over the previous five-year period. That year, our net leverage — the measure of how much of our company was financed with debt — was in line with that of our peers. And, by 2008, we had meaningfully reduced that leverage, increased our equity to $28bn and expanded our liquidity pool. Were those numbers real, or were we cooking the books? Well, the three investigations over the past decade, including one by the Securities and Exchange Commission, have all concluded that our balance sheet valuations were legal. In other words, there was adequate collateral to secure a loan from the Fed after all. It’s not as though Lehman sprang its need for support from federal decision makers at the last minute, leaving too little time to make a thoughtful decision. Quite the opposite. In June, I was on a call with Dick Fuld and several other top Lehman executives when we asked Timothy Geithner, then the president of the Federal Reserve Bank of New York, to allow us to become a bank holding company. Among the dozens of plans we had under way to salvage the bank, this was the one we felt would single-handedly do it. Tragically, Mr Geithner said no, saying it would send the wrong message. We felt like the wounded lion who climbed up the mighty baobab tree to escape a pack of hyenas — only to have the branch break. Ironically, the Fed turned Goldman Sachs and Morgan Stanley into bank holding companies one week after Lehman filed for bankruptcy, sending the right message — and giving them exactly what we had been denied. The decision to rescue Goldman and Morgan Stanley was instrumental in preventing the collapse of the entire financial system. Lehman could have been saved in exactly the same way at any point that summer which would have prevented the carnage the world experienced.
For Wall Street executives, myself included, to lose our jobs and most of our net worth was right. For Main Street to suffer so profoundly was not. The latter was preventable. I do not seek to condemn Mr Bernanke, Mr Geithner and the third key player, Treasury secretary Hank Paulson, for the way they handled Lehman. In fact, three more qualified individuals could not have been found. They were dealt a horrible hand as they focused on containing a financial firestorm. Their stumbling block was that, in the period leading up to Lehman’s collapse, the Washington consensus was that supporting troubled financial institutions would encourage more risky behavior and increase the need for further bailouts. The presidential candidates of the day, the late John McCain and Barack Obama, were delivering speeches saying that Washington must save Main Street, not Wall Street. The political pressure to let one bank fail was enormous. Mr Geithner, on the final Friday before Lehman went down, echoed what Mr Paulson had been saying all along: “There is no political will in Washington for a bailout. ”A bad decision was made because of suffocating political pressure. As we prepare for the next time a crisis happens — and there will be a next time, even if it doesn’t look exactly like 2008 — policymakers need to remember this lesson. What could we do to prepare? The Basel Committee on Banking Supervision should take another look at the higher capital and liquidity standards it put in place shortly after the crisis — are they too loose or too constraining? Enough time has passed to assess this. We should also take another look at the US rules around rescuing banks so that the Fed can do what needs to be done to protect the economy from another crisis. That means rethinking the additional requirements that were put in place after the crash that now make it harder to support a teetering lender. Lastly, we should consider creating an industry-financed fund to supplement the Federal Deposit Insurance Corporation. Backed by the Fed, it would require institutions to contribute based on their level of systemic risk. That way, we can save failing banks and stabilize the financial system without worrying about a political backlash because the bailout will have been funded in advance by the banks, not afterwards, by the people.
The writer, a former Lehman Brothers executive, has served on for-profit and not-for-profit boards since 2008.
To be clear. Lehman did not deserve Fed support. Morgan Stanley did not deserve Fed support. Goldman did not deserve Federal support. Global Main Street deserved Fed support. The initial cost estimate to support was in the billions, to not support was in the trillions. To support does not mean executives. They deserve to have net worth decimated and jobs lost. To support does mean do not let global Main Street get hurt through uncontrolled failures of systemic risk carrying financial institutions. The depth of the cost and pain of the 2008 crisis was avoidable. We can protect global Main Street going forward and for generations to come, but need to do 3 things now: 1) Convene Basel IV to assess regulatory levels put in place after 2008; 2) Remove political hurdles for Fed to exercise powers; and 3) Create an industry fund or insurance backed by the Fed and funded annually by industry so we de-politicize support of the next failing institution. We can help generations to come if we learn from what really happened and why in 2008.
You may review my more in depth comments on BBC Worldwide and here is my full interview with NPR (National Public Radio) in the USA: https://youtu.be/2jpHH6iHwXA
DB (a foreign bank) was the ninth largest borrower ($354 billion) of US Federal Reserve bailout money during the last crisis. Reason the US bailed them out was because DB was a major derivative counterparty to the Wall Street banks.
Today DB has $49 trillion in derivatives and remains a major counterparty risk to some of Wall Street's largest banks.
Yes, the foreign bank's future matters heavily to the health of the US economy. How much it matters remains to be seen when it comes time to bail them again.
The author argues in favor of keeping the current paradigm in place, a constant Wall Street bank gravy train financed by main street. Fractional reserve banking with fiat money creation for the benefit of the few insiders at the expense of actual working people. Of course he thinks Lehman should've been saved. I call BS.
Q: Are You Printing Money? Bernanke: Not Literally
How many times can a zombie thread come back to life?
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
I actually thought about buying some Lehman shares when Jim Cramer was busy touting them on the way down. I was thinking "Chrysler turnaround".
In the big boys' world, we just don't get to know the real story when it's happening. Same for Deutsche Bank or any other corporation for that matter. The regulators, regulations, accounting rules, enforcement of the laws - are a joke.
Same for gold and silver price discovery. We simply don't get to know. Deal with it.
Q: Are You Printing Money? Bernanke: Not Literally
"I know that most Americans don’t really care if Deutsche Bank lives or dies, but as the New York Post has pointed out, the failure of Deutsche Bank could quickly become a major crisis for the entire global financial system…"
I guess that the question will be, "how do you parcel out and resolve $49 trillion in derivatives when the current holder of them is insolvent and can't perform on the contracts? We're talking not only about liquidity issues (which borders on the incomprehensible), but also on the obvious legal quagmire that won't be able to avoid huge worldwide publicity. How's that going to affect investment sentiment?
This whole thing could really suck. Thanks, banking industry. Thanks, you moron, bought-off "legislators".
Q: Are You Printing Money? Bernanke: Not Literally
The HSBC CEO is running for the hills after seeing what is going down in China/ Hong Kong. HSBC has a LARGE part of their business based in Eastern Asia and after seeing the storm brewing, hes running for the hills. The rats are always the first ones to get to safety....
"If all they had their employees doing was flushing dollar bills down the toilet for 6 months, it still shouldn’t be possible to lose that kind of money."
Comments
but the parent company has the euros! it's is DB USA that was flagged.
so, now what?
Zombie thread
New News
https://www.marketwatch.com/story/fed-calls-deutsche-banks-us-operations-troubled-2018-05-31
Zombie bank.
I knew it would happen.
DB has rebounded and bottomed now. DB is in good shape, finally! DB is up 3% in the past week! Unbelievable returns!
DB traders go all in . . . and lose
"This loss, which is unrivaled in either Deutsche Bank history, or in other banks’ first quarter reports - was oddly left out of Deutsche Bank’s earnings report, and as BBG notes, "raises questions about U.S. regulators’ ability to have an accurate picture of a foreign bank’s operations. . ."
Give Me Liberty or Give Me Debt
Wow
the whole point of a bank being outside the US is to avoid regulation. In the 70's and 80's banks all over the world started loaning offshore dollars with no oversight or regulation. They like it that way
Probably also due to the war on drugs.
I think the big drug money bank is HSBC , and Santander, and bank of America , well JP morgan obviously , Western Union is absolutely killing it but they are not exactly a bank.
Wells fargo would be on the list but they created a bunch of fake accounts for the drug kingpins and signed them up for phony credit cards car insurance policies and pissed those guys off. Stupid to alienate your best customers just to make some quotas but thats what warren wanted.
The Deutsche Bank As You Know It Is No More
"Finally, the bank also said that the restructuring actions will include a workforce reduction of approximately 18,000 full-time equivalent employees to around 74,000 employees by 2022."
Dead bank walking.
Give Me Liberty or Give Me Debt
almost 3 years
Gregory Mannarino gives a good interview with Greg Hunter on USAWatchdog concerning DB. He mentions that DB's bad debt will be parceled out to the other CBs and that a debt reset is coming.
It's not a good scenario for regular people.
I knew it would happen.
3 year old headline posted by derryb from zerohedge: "What will the upcoming Deutsche Bank failure mean for gold?" Obviously: nothing .. Deutsche Bank will not be allowed to fail and will have absolutely not affect on PM's...
even if it fails, and I don't think it'll happen, the banking industry is pretty healthy. No effect on gold this far removed from the gloom and doom.
Tell that to the 18,000 former employees they just failed. Three years ago I posted the question (not a headline) "what will the upcoming DB failure mean for gold?" Your reply was "Not gonna happen." DB is now scrambling to survive.
We will soon know. Banks are dominoes in disguise. 2008 should have taught you that.
Lehman 2.0. The Long Goodbye:
Give Me Liberty or Give Me Debt
stocks can go down then recover. it happens.
So said the Lehman shareholders. But yes they can. However, in this case, dead bank walking
Give Me Liberty or Give Me Debt
Why don't we look at your chart 3 years from now, since this is an old resurrected thread from 3 years ago, that predicted imminent doom & gloom at that time.
The prediction was for the "upcoming" failure. We're almost there. Dead bank walking. They don't have three years left.
Give Me Liberty or Give Me Debt
https://finance.yahoo.com/news/london-deutsche-bank-staff-crying-after-huge-jobs-cull-london-losses-office-120006877.html
Here comes a possible change in market psychology.
I knew it would happen.
Bank Run: Deutsche Bank Clients Are Pulling $1 Billion A Day
But there's nothing to worry about.
Give Me Liberty or Give Me Debt
https://www.ft.com/content/c86fbb48-af98-11e8-87e0-d84e0d934341
@MsMorrisine, link does not work.
!$@^%!$@#!% paid firewalls!!!
let me find one that does.
Lehman insider: why the bank could and should have been saved
The bank’s former chief administrative officer considers the argument for a bailout
Scott Freidheim
September 6, 2018
In 2008, the collapse of Lehman Brothers triggered a global financial crisis. A decade later, commentators are debating whether federal officials could have prevented the crisis by supporting Lehman as it did other banks soon afterwards. I was Lehman’s chief administrative officer on the day it closed its doors forever. Speaking as someone who was on the inside looking out, the answer is clear: Lehman could have and should have been saved. I realize that may sound self-serving. However, let’s consider the facts. Lehman was refused assistance, it was explained weeks afterwards, because it lacked the collateral to secure a loan from the US Federal Reserve — the Fed was therefore barred from providing assistance. Many of us first heard that explanation from the then-Fed chairman Ben Bernanke at the Economic Club of New York in October 2008.By way of context, Lehman had delivered record net revenues and earnings in 2007, giving it the second-best revenue and earnings growth in the industry over the previous five-year period. That year, our net leverage — the measure of how much of our company was financed with debt — was in line with that of our peers. And, by 2008, we had meaningfully reduced that leverage, increased our equity to $28bn and expanded our liquidity pool. Were those numbers real, or were we cooking the books? Well, the three investigations over the past decade, including one by the Securities and Exchange Commission, have all concluded that our balance sheet valuations were legal. In other words, there was adequate collateral to secure a loan from the Fed after all. It’s not as though Lehman sprang its need for support from federal decision makers at the last minute, leaving too little time to make a thoughtful decision. Quite the opposite. In June, I was on a call with Dick Fuld and several other top Lehman executives when we asked Timothy Geithner, then the president of the Federal Reserve Bank of New York, to allow us to become a bank holding company. Among the dozens of plans we had under way to salvage the bank, this was the one we felt would single-handedly do it. Tragically, Mr Geithner said no, saying it would send the wrong message. We felt like the wounded lion who climbed up the mighty baobab tree to escape a pack of hyenas — only to have the branch break. Ironically, the Fed turned Goldman Sachs and Morgan Stanley into bank holding companies one week after Lehman filed for bankruptcy, sending the right message — and giving them exactly what we had been denied. The decision to rescue Goldman and Morgan Stanley was instrumental in preventing the collapse of the entire financial system. Lehman could have been saved in exactly the same way at any point that summer which would have prevented the carnage the world experienced.
For Wall Street executives, myself included, to lose our jobs and most of our net worth was right. For Main Street to suffer so profoundly was not. The latter was preventable. I do not seek to condemn Mr Bernanke, Mr Geithner and the third key player, Treasury secretary Hank Paulson, for the way they handled Lehman. In fact, three more qualified individuals could not have been found. They were dealt a horrible hand as they focused on containing a financial firestorm. Their stumbling block was that, in the period leading up to Lehman’s collapse, the Washington consensus was that supporting troubled financial institutions would encourage more risky behavior and increase the need for further bailouts. The presidential candidates of the day, the late John McCain and Barack Obama, were delivering speeches saying that Washington must save Main Street, not Wall Street. The political pressure to let one bank fail was enormous. Mr Geithner, on the final Friday before Lehman went down, echoed what Mr Paulson had been saying all along: “There is no political will in Washington for a bailout. ”A bad decision was made because of suffocating political pressure. As we prepare for the next time a crisis happens — and there will be a next time, even if it doesn’t look exactly like 2008 — policymakers need to remember this lesson. What could we do to prepare? The Basel Committee on Banking Supervision should take another look at the higher capital and liquidity standards it put in place shortly after the crisis — are they too loose or too constraining? Enough time has passed to assess this. We should also take another look at the US rules around rescuing banks so that the Fed can do what needs to be done to protect the economy from another crisis. That means rethinking the additional requirements that were put in place after the crash that now make it harder to support a teetering lender. Lastly, we should consider creating an industry-financed fund to supplement the Federal Deposit Insurance Corporation. Backed by the Fed, it would require institutions to contribute based on their level of systemic risk. That way, we can save failing banks and stabilize the financial system without worrying about a political backlash because the bailout will have been funded in advance by the banks, not afterwards, by the people.
The writer, a former Lehman Brothers executive, has served on for-profit and not-for-profit boards since 2008.
ScottFreidheim
Sep 15, 2018
To be clear. Lehman did not deserve Fed support. Morgan Stanley did not deserve Fed support. Goldman did not deserve Federal support. Global Main Street deserved Fed support. The initial cost estimate to support was in the billions, to not support was in the trillions. To support does not mean executives. They deserve to have net worth decimated and jobs lost. To support does mean do not let global Main Street get hurt through uncontrolled failures of systemic risk carrying financial institutions. The depth of the cost and pain of the 2008 crisis was avoidable. We can protect global Main Street going forward and for generations to come, but need to do 3 things now: 1) Convene Basel IV to assess regulatory levels put in place after 2008; 2) Remove political hurdles for Fed to exercise powers; and 3) Create an industry fund or insurance backed by the Fed and funded annually by industry so we de-politicize support of the next failing institution. We can help generations to come if we learn from what really happened and why in 2008.
You may review my more in depth comments on BBC Worldwide and here is my full interview with NPR (National Public Radio) in the USA:
https://youtu.be/2jpHH6iHwXA
Agree...nothing to worry about..considering the source
The primary source of their tabloid headline is non other than:
https://nypost.com/2019/04/10/hedge-fund-slammed-over-6-8b-in-unpaid-taxes-seeks-deal-with-irs-report/
@MsMorrisine, Thank you.
DB (a foreign bank) was the ninth largest borrower ($354 billion) of US Federal Reserve bailout money during the last crisis. Reason the US bailed them out was because DB was a major derivative counterparty to the Wall Street banks.
Today DB has $49 trillion in derivatives and remains a major counterparty risk to some of Wall Street's largest banks.
Yes, the foreign bank's future matters heavily to the health of the US economy. How much it matters remains to be seen when it comes time to bail them again.
Give Me Liberty or Give Me Debt
The author argues in favor of keeping the current paradigm in place, a constant Wall Street bank gravy train financed by main street. Fractional reserve banking with fiat money creation for the benefit of the few insiders at the expense of actual working people. Of course he thinks Lehman should've been saved. I call BS.
I knew it would happen.
How many times can a zombie thread come back to life?
as many times as a zombie bank can.
Give Me Liberty or Give Me Debt
I actually thought about buying some Lehman shares when Jim Cramer was busy touting them on the way down. I was thinking "Chrysler turnaround".
In the big boys' world, we just don't get to know the real story when it's happening. Same for Deutsche Bank or any other corporation for that matter. The regulators, regulations, accounting rules, enforcement of the laws - are a joke.
Same for gold and silver price discovery. We simply don't get to know. Deal with it.
I knew it would happen.
A Bank With 49 Trillion Dollars In Exposure To Derivatives Is Melting Down Right In Front Of Our Eyes
"I know that most Americans don’t really care if Deutsche Bank lives or dies, but as the New York Post has pointed out, the failure of Deutsche Bank could quickly become a major crisis for the entire global financial system…"
Give Me Liberty or Give Me Debt
I guess that the question will be, "how do you parcel out and resolve $49 trillion in derivatives when the current holder of them is insolvent and can't perform on the contracts? We're talking not only about liquidity issues (which borders on the incomprehensible), but also on the obvious legal quagmire that won't be able to avoid huge worldwide publicity. How's that going to affect investment sentiment?
This whole thing could really suck. Thanks, banking industry. Thanks, you moron, bought-off "legislators".
I knew it would happen.
Another viewpoint..
https://www.ft.com/content/733020e4-db87-3fe8-a2b5-cf5625b748a8
Might have to copy and paste link in a new browser window.
Knowledge is the enemy of fear
Might have to pay
yep, Subscribe to the FT to read:
Financial Times
Deutsche Bank derivative dumbness
Read the comments
https://www.marketwatch.com/story/deutsche-bank-pegs-its-derivatives-exposure-at-about-22-billion-and-faces-challenges-in-shedding-those-assets-2019-07-26
https://www.bloomberg.com/news/articles/2019-08-04/hsbc-ceo-john-flint-steps-down-names-noel-quinn-interim-ceo-jyxk51hh
The HSBC CEO is running for the hills after seeing what is going down in China/ Hong Kong. HSBC has a LARGE part of their business based in Eastern Asia and after seeing the storm brewing, hes running for the hills. The rats are always the first ones to get to safety....
Deutsche Bank Death Watch Has Taken A Very Interesting Turn
"If all they had their employees doing was flushing dollar bills down the toilet for 6 months, it still shouldn’t be possible to lose that kind of money."
Give Me Liberty or Give Me Debt
This thread is over 3 years old now.
The Earth has gained about 250 million people since this thread started.
"Upcoming'......LOL.
Knowledge is the enemy of fear
How would you have liked to known about last major crisis three years in advance? LOL
Give Me Liberty or Give Me Debt
How? I'd like Homer Simpson to tell me. More crediblity.
Knowledge is the enemy of fear
News alert: You can stop waiting on your last statement from Lehman Bros. . . . It's over.
If you can't see the writing on the wall with Deutsche, take off the stained glasses.
Give Me Liberty or Give Me Debt
Those are your glasses. Mine are rosy. Actual photo. Rudy Project. Check them out. Preferred by many of the worlds greatest athletes and marksmen.
Knowledge is the enemy of fear
DB 20 days, 1 hour