{"id":21637,"date":"2016-09-17T08:20:29","date_gmt":"2016-09-17T13:20:29","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21637"},"modified":"2016-09-17T08:20:29","modified_gmt":"2016-09-17T13:20:29","slug":"deutsche-banks-coco-bonds-speak-of-fear-of-the-worst","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21637","title":{"rendered":"Deutsche Bank\u2019s CoCo Bonds Speak of Fear of the Worst"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2016\/09\/16\/deutsche-bank-unglued-again-co-co-bonds-shares-plunge\/\">Deutsche Bank\u2019s CoCo Bonds Speak of Fear of the Worst<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>The fine that broke the bank?<\/strong><\/p>\n<p>Deutsche Bank investors just can\u2019t catch a break. They keep thinking that shares have dropped so low that it\u2019s time to grab them. Herd instinct sets in, and this\u00a0buying perks up the shares. Then the bank\u2019s sins once again come to the foreground. And what investors had grabbed was a falling knife, and fingers are now getting sliced off.<\/p>\n<p>Early morning on Friday in Frankfurt \u2013 in the US, Thursday after the markets had closed, a strategic time for bad news \u2013 Deutsche Bank\u00a0<a href=\"https:\/\/www.db.com\/newsroom_news\/2016\/medien\/deutsche-bank-confirms-negotiations-with-doj-regarding-rmbs-en-11684.htm\">announced<\/a>\u00a0that the US Justice Department was trying to wring $14 billion out it. The fine is\u00a0based on the investigation into mortgage backed securities that the bank had rolled into complex toxic products and sold to unsuspecting investors between 2005 and 2007, just before the Financial Crisis.<\/p>\n<p>The Justice Department already nailed other banks for it\u00a0and extracted large fines; and it\u2019s still investigating some banks, including UBS, Credit Suisse, Royal Bank of Scotland, and Barclays \u2013 which saw their shares get pummeled today.<\/p>\n<p>Deutsche Bank has\u00a0<a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-09-15\/deutsche-bank-asked-to-pay-14-billion-in-u-s-probe-wsj-says\" target=\"_blank\">already paid<\/a>\u00a0over $9 billion in fines and settlements since 2008. Other scandals are still simmering on the front burner, unresolved, including the money laundering scandal in Russia for which Deutsche Bank has reserved \u20ac5.5 billion this summer to cover the fines.<\/p>\n<p>In its\u00a0<a href=\"https:\/\/www.db.com\/newsroom_news\/2016\/medien\/deutsche-bank-confirms-negotiations-with-doj-regarding-rmbs-en-11684.htm\" target=\"_blank\">statement<\/a>\u00a0early Friday in Frankfurt, Deutsche Bank said it \u201chas commenced negotiations\u201d with the Justice Department:<\/p>\n<blockquote><p>The bank confirms market speculation of an opening position by the DoJ of USD 14 billion and that the DoJ has invited the bank as the next step to submit a counter proposal.<\/p>\n<p>Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited. The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts.<\/p><\/blockquote>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Deutsche Bank\u2019s CoCo Bonds Speak of Fear of the Worst The fine that broke the bank? Deutsche Bank investors just can\u2019t catch a break. They keep thinking that shares have dropped so low that it\u2019s time to grab them. Herd instinct sets in, and this\u00a0buying perks up the shares. Then the bank\u2019s sins once again [&hellip;]<\/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":[61,2229,14253,1839,312,3672,4254,4255],"class_list":["post-21637","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banking","tag-banking-system","tag-coco-bonds","tag-deutsche-bank","tag-financial-crisis","tag-us-justice-department","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21637","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=21637"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21637\/revisions"}],"predecessor-version":[{"id":21638,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21637\/revisions\/21638"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}