Deutsche Bank going under?

[Gary K]

Deutsche Bank has just pulled out of all equity markets. This is an investment bank that just stopped buying and selling of stocks, bonds, and all investments. As it is one of the largest banks in the world it's collapse would collapse the world economy as the domino effect of all the banks leaning on each other.

Here is Greg Hunter interviewing an investment analyst about this news.

 

[annabenedetti]

Doesn't sound like it.

In total, Deutsche Bank aims to cut costs by €6 billion by 2022, or a quarter of its current cost base. The impact of the restructuring will result in a hit of €5 billion to the bank’s earnings this year, possibly setting it up for yet another loss-making year. Dividends will be suspended in 2019 and 2020.

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In the end, Deutsche Bank will focus on its operations serving businesses and clients of the private bank and asset management units. After years of false dawns in its attempt to compete globally with the big American investment banks, Deutsche Bank is definitively retrenching from the racier aspects of investment banking into safer, more stable businesses focused on Germany and elsewhere in Europe.

 

[Gary K]

In August 2010 DB's stock was worth $68+a share. As of July the 5th of this year their stock price was $8.03/share. Over the weekend while trading was suspended the stock dropped another 3.99% on the news they were getting out of the equities market when stocks are at all time highs.

DB is also in trouble with European banking regulators and has a long history of shoddy accounting practices meaning that what they publish as their assets is highly suspect. Here's one of their "little" problems that amounts to 60 billion euros. http://www.ifre.com/deutsche-bank-h...nt-want-to-talk-about-it/21337873.fullarticle

And here is more bad news from DB. They are facing a $14 billion fine from US regulators for what amounts to fraud, and at the same time are fighting another 7000 lawsuits for their shoddy practices. https://www.theguardian.com/business/2016/sep/16/deutsche-bank-14bn-dollar-fine-doj-q-and-a

edit: Current stock price is down even more. It's continuing the long term trend as it is at $7.62 as I write this. That is a 5%+ drop in price just today. If their stock price was at 2010 levels a 5% drop would not mean much, but when the stock was already down 88% from 2010 levels this is serious.