Deutsche Bank ADMITS it is preparing for market crash as fears over bail out grow

Tuesday, August 16, 2016
By Paul Martin

GERMANY’S largest bank has ADMITTED it is in “financial repression mode” as it desperately scrambles to implement financial buffers to prevent collapse.

By SIOBHAN MCFADYEN
Express.co.uk
Tue, Aug 16, 2016

Central banks are using interest-rate cuts, asset purchases, and other monetary-policy measures to prop up the economy to keep it at a “status quo”, the bank said.

But a market correction could be on the cards if an “external economic shock” hits, they said.

The news comes as it was revealed the bank’s profits dropped by 98 per cent last month and its share price reached lows not seen since before 2002.

Now Dominic Konstam, Deutsche Bank’s global head of interest rates research, has issued a report that warned a “collapse in risk assets” could cause “panic”.

And he said the bank is awaiting on decisions from the ECB to bail out Italy and Japan’s proposed “helicopter money” investment similar to that of quantitative easing in order to fully understand what happens next.

Mr Konstam said: “The status quo could continue for several years yet – if nothing ‘breaks’ in the system.

“There are ways of course for either avoiding breaks or at least patching them – mitigating the impact of negative rates on banks is now in vogue with subsidised bank loans for on lending.

“We may yet see soft forms of bank bailout still being allowed.

The Rest…HERE

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