{"id":21400,"date":"2016-07-10T17:33:21","date_gmt":"2016-07-10T22:33:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21400"},"modified":"2016-07-10T17:33:21","modified_gmt":"2016-07-10T22:33:21","slug":"charting-the-epic-collapse-of-the-worlds-most-systemically-dangerous-bank","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21400","title":{"rendered":"Charting The Epic Collapse Of The World’s Most Systemically Dangerous Bank"},"content":{"rendered":"

Charting The Epic Collapse Of The World’s Most Systemically Dangerous Bank<\/a><\/h3>\n
<\/section>\n
It\u2019s been almost 10 years in the making, but the\u00a0fate\u00a0<\/strong>of one of Europe\u2019s most important financial institutions\u00a0appears to be sealed<\/strong>.<\/div>\n
\n
\n

After a hard-hitting sequence of scandals, poor decisions, and unfortunate events,Visual Capitalist’s Jeff Desjardins<\/a><\/em>\u00a0notes that Frankfurt-based Deutsche Bank shares are now down -48% on the year to $12.60, which is a record-setting low.<\/p>\n

Even more stunning is the long-term view of the German institution\u2019s downward spiral.<\/strong><\/p>\n

With a modest $15.8 billion in market capitalization, shares of the 147-year-old company now trade for a paltry 8% of its peak price in May 2007.<\/p>\n

<\/a><\/div>\n
Courtesy of:\u00a0Visual Capitalist<\/a><\/em><\/div>\n

 <\/p>\n

THE BEGINNING OF THE END<\/h2>\n

If the deaths of Lehman Brothers and Bear Stearns were quick and painless, the coming demise of Deutsche Bank has been long, drawn out, and painful.<\/strong><\/p>\n

In recent times, Deutsche Bank\u2019s investment banking division has been among the largest in the world, comparable in size to Goldman Sachs, JP Morgan, Bank of America, and Citigroup. However, unlike those other names, Deutsche Bank has been walking wounded since the Financial Crisis, and the German bank has never been able to fully recover.<\/p>\n

It\u2019s ironic, because in 2009, the company\u2019s CEO Josef Ackermann boldly proclaimed that Deutsche Bank had plenty of capital, and that it was\u00a0weathering the crisis<\/a>\u00a0better than its competitors.<\/p>\n

It turned out, however, that the bank was actually\u00a0hiding $12 billion in losses<\/a>\u00a0to avoid a government bailout<\/strong>. Meanwhile, much of the\u00a0money the bank did make<\/a>\u00a0during this turbulent time in the markets stemmed from the manipulation of Libor rates. Those \u201cwins\u201d were short-lived, since the eventual fine to end the Libor probe would be a record-setting $2.5 billion.<\/p>\n

The bank finally had to admit that it actually needed more capital.<\/strong><\/p>\n

In 2013, it raised \u20ac3 billion with a rights issue, claiming that no additional funds would be needed. Then in 2014 the bank head-scratchingly proceeded to raise \u20ac1.5 billion, and after that,\u00a0another \u20ac8 billion<\/a>.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Charting The Epic Collapse Of The World’s Most Systemically Dangerous Bank It\u2019s been almost 10 years in the making, but the\u00a0fate\u00a0of one of Europe\u2019s most important financial institutions\u00a0appears to be sealed. After a hard-hitting sequence of scandals, poor decisions, and unfortunate events,Visual Capitalist’s Jeff Desjardins\u00a0notes that Frankfurt-based Deutsche Bank shares are now down -48% on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[3038,10661,1718,150,1839,305,376,6654,5415,1421,12393,9525,10387,4318],"class_list":["post-21400","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-america","tag-bear-stearns","tag-citigroup","tag-collapse","tag-deutsche-bank","tag-federal-reserve","tag-goldman-sachs","tag-lehman","tag-lehman-brothers","tag-libor","tag-notional-value","tag-risk-management","tag-stress-test","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21400"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21400\/revisions"}],"predecessor-version":[{"id":21401,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21400\/revisions\/21401"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}