Fund Manager: First Big Bank Collapse of Financial Crisis Likely Deutsche Bank

Tuesday, February 9, 2016
By Paul Martin

SilverDoctors.com
February 9, 2016

When a bank has been forced to issue a statement defending its solvency, insolvency is not far behind. We saw this with Bear Stearns and Lehman.
Denial of a catastrophic problem is affirmation that the problem is very real.

Submitted by PM Fund Manager Dave Kranzler, IRD:

Deutsche Bank stock is down over 8% today. It’s trading at $15.53. This is 20% lower than the previous low it hit at the apex of the great financial crisis (de facto collapse) in 2008/2009.

With rumors flying because of DB’s stock performance this year, management issued a statement defending the bank’s liquidity position: LINK “Additional Tier 1 coupons” references the debt that was issued as part of a transaction to raise Tier 1 regulatory capital by Deustche Banks. The accounting behind the scheme – yes, it’s a scheme – is complicated but the regulators permitted DB is issue a security that behaves like debt but is treated as Tier 1 capital for the purposes of measuring the bank’s ability to withstand hits to its asset base.

The Rest…HERE

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