{"id":21832,"date":"2016-09-24T14:51:11","date_gmt":"2016-09-24T19:51:11","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21832"},"modified":"2016-09-24T14:51:11","modified_gmt":"2016-09-24T19:51:11","slug":"merkel-says-no-aid-for-deutsche-bank-depositor-bail-in-coming-up","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21832","title":{"rendered":"Merkel Says No Aid for Deutsche Bank; Depositor Bail-In Coming Up?"},"content":{"rendered":"
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Merkel Says No Aid for Deutsche Bank; Depositor Bail-In Coming\u00a0Up?<\/a><\/h3>\n<\/header>\n
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The \u20ac72 trillion (notional) derivatives mess known as Deutsche Bank remains under severe pressure. It\u2019s market cap is $17.43 billion. It has no earnings and pays no dividend.<\/p>\n

On April 23,\u00a0Deutsche Bank was Fined $2.5 Billion<\/a>\u00a0over LIBOR rate rigging. Twenty-one people face criminal charges following a seven-year investigation.<\/p>\n

On September 16, the\u00a0US Department of Justice Fined Deutsche Bank $14B<\/a>\u00a0for mortgage securities fraud leading up to the 2007-2009 global meltdown.<\/p>\n

Today, German Chancellor\u00a0Angela Merkel Rules Out Assistance for Deutsche Bank<\/a>.<\/p>\n

No Comment<\/strong><\/p>\n

Chancellor Angela Merkel has ruled out any state assistance for Deutsche Bank AG in the year heading into the national election in September 2017, Focus magazine reported, citing unidentified government officials.<\/p>\n

The German leader also declined to step into the Frankfurt-based bank\u2019s legal imbroglio with the U.S. Justice Department, which may seek as much as $14 billion in sanctions against Deutsche Bank\u2019s mortgage-backed securities business, the magazine said. A German government spokesman\u00a0declined to comment<\/em>\u00a0on the report Saturday. A Deutsche Bank spokeswoman\u00a0also wouldn\u2019t comment<\/em>.<\/p><\/blockquote>\n

Understanding the Fine<\/strong><\/p>\n

The Guardian reports\u00a0$14bn Deutsche Bank Fine \u2013 All You Need to Know<\/a>.<\/p>\n

The prospect of a $14bn penalty from the US Department of Justice has rattled investor confidence in Deutsche. The penalty aims to settle allegations, dating back to 2005, about the way the bank selected mortgages, packaged them into bonds and sold on to investors. These bonds are known as residential mortgage-backed securities (RMBS).<\/p>\n

Can Deutsche Afford the Bill?<\/p>\n

Deutsche Bank has been quick to describe the fine as an \u201copening position\u201d from Washington. It is easy to see why. It would be one of the largest ever fines levied by the US. It could also strain the bank\u2019s finances. For 2015, the bank reported its first annual loss since 2008 and could be heading for another loss this year regardless of the threatened justice department fine.<\/p><\/blockquote>\n<\/div>\n

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

Merkel Says No Aid for Deutsche Bank; Depositor Bail-In Coming\u00a0Up? The \u20ac72 trillion (notional) derivatives mess known as Deutsche Bank remains under severe pressure. It\u2019s market cap is $17.43 billion. It has no earnings and pays no dividend. On April 23,\u00a0Deutsche Bank was Fined $2.5 Billion\u00a0over LIBOR rate rigging. Twenty-one people face criminal charges following […]<\/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":[1890,46,2015,1839,359,14380,6261,14381],"class_list":["post-21832","post","type-post","status-publish","format-standard","hentry","category-economics","tag-angela-merkel","tag-bail-in","tag-bailout","tag-deutsche-bank","tag-germany","tag-libor-rate-rigging","tag-us-department-of-justice","tag-us-doj"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21832","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=21832"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21832\/revisions"}],"predecessor-version":[{"id":21833,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21832\/revisions\/21833"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}