The Deutsche Bank Crisis: The Beginning Of The End For "europe?"

[naomi24]

http://www.telegraph.co.uk/business/2016/09/26/the-deutsche-bank-crisis-could-take-angela-merkel-down--and-the/

[Khandro]

Most people seem to think that Germany is such a strong economy and fail to notice that its debt is really frightening;
http://www.nationaldebtclocks.org/debtclock/germany

[-Talbot-]

http://www.bloomberg.com/news/articles/2016-09-28/erdogan-adviser-says-turkey-should-consider-buying-deutsche-bank

[naomi24]

I can't help thinking that in not too many years to come we'll be thinking, "Thank heavens for Brexit".

[Gromit]

// Most people seem to think that Germany is such a strong economy and fail to notice that its debt is really frightening; //

It is exactly the same as ours. Virtually indentical to the penny. Do investors lose any sleep over our national debt? - Nope.

[Gromit]

// I can't help thinking that in not too many years to come we'll be thinking, "Thank heavens for Brexit". //

Yeah, being out of the EU will magically make us immune from any effects of an EU financial crisis.
We haven't brexited yet. We haven't even begun to start the process. At the earliest that will be next year, probably more than 12 months after the vote. And extracting ourselves will take years. Estimates vary between five and twenty years. So if there is an EU crisis, we are likely to be still in it.

[Gromit]

The problem at Deutsche Bank mirror exactly the situation at Royal Bank of Scotland. RBS has nose dived in the last 18 months, and is now in a perilous state.
And Barclays are not fairing much better.
Santandar and Credit Suisse are also in the mire.

Trading in RBS and Barclays had to be suspended in June because they were tanking after the EU vote. Both banks are still in serious trouble.

A Financial Crisis Mk II looks to be just around the corner. It is probably unwise to gloat at Deutsche Bank's predicament. If one tumbles, it will undoubtly trip up the other four.

[naomi24]

Gromit, the question wasn’t whether it will affect us or not – of course it will affect us – but some people seem to be more concerned about the effect it will have on the EU than you. Former chancellor Lord Lamont said at the Institute of Directors annual convention that //The European Union is at risk of buckling under the weight of distressed lenders ……German banks posed a threat to the EU…. and …..little could be done to "preserve the EU in its current form"// Others voiced similar concerns.

http://www.ibtimes.co.uk/struggling-german-banks-pose-biggest-threat-eu-warns-former-chancellor-lord-lamont-1583647

[youngmafbog]

Deutsche is Germany's second biggest Bank and although not in the top 25 is still a fair size.

Could it collapse Europe? No not on it's own but if they are going how many others from the shattered economies of the Euro states will follow?

Could it collapse the Euro, no that is possible,

Barclays are not in the same position at all. Performance is down but most are still saying the shares are an ok buy.

[Gromit]

Ymb,
Since announcing its £12.8 black hole a couple of years ago, news from Barclays has only been bad. Trading in their shares have had to be suspended TWICE this year because they were tanking.
There are plenty of sources on the internet lumping Barclays into the same group of banks in danger.

// My best German source informs me that 3 major banks are in trouble, and these 3 banks are fighting every single night to fight off insolvency and failure. He says CitiGroup in New York, Barclays in London, and Deutsche Bank in Germany- every single night are in trouble… //

http://monetarywatch.com/2016/09/deutche-bank-approaches-catastrophic-collapse-trillions-debt-exposure-will-burn-european-banks-like-raging-firestorm/

[Gromit]

* £12.8billion *