'Deutsche Bank is a potential catalyst for the bursting of the global Bubble .. with global central bankers, lost their minds, with massive QE and negative rates..'

'..European bank problems continue to fester – in Italy, Germany and elsewhere..'

<blockquote>'..the harsh reality that QE hasn’t been working, and the markets know that policymakers know. Policymakers will never admit as much, but they’ve run short of options. Japan is an absolute policy debacle in the making. European bank problems continue to fester – in Italy, Germany and elsewhere. Here in the U.S., a potentially destabilizing election is now just about six weeks away. And let’s not forget the historic Chinese Credit Bubble that gets scarier by the week.'

- Doug Noland, Like Old Times: Q2 2016 Flow of Funds, September 24, 2016</blockquote>


'..the New York Fed had issued a stiff letter to Deutsche’s U.S. arm warning that the bank was suffering from a litany of problems that amounted to a “systemic breakdown” in its risk controls and reporting..'

<blockquote>'Let’s review recent developments. In June 2013 FDIC Vice Chairman Thomas M. Hoenig lambasted Deutsche in a Reuters interview. “Its horrible, I mean they’re horribly undercapitalized,” he said. They have no margin of error.” A little over a year later, it was revealed that the New York Fed had issued a stiff letter to Deutsche’s U.S. arm warning that the bank was suffering from a litany of problems that amounted to a “systemic breakdown” in its risk controls and reporting. Deutsche’s operational problems led it to fail the next CCAR — the Comprehensive Capital Analysis and Review aka the Fed’s stress tests – in March 2015.'

- Is Deutsche Bank Kaputt? September 27, 2016</blockquote>


'Deutsche Bank is a potential catalyst for the bursting of the global Bubble. It has company. Though it is almost unique as a poster child of the mess global policymaking has made of things. After the 2008 crisis, Deutsche Bank had the opportunity to take market share in global prime brokerage, derivatives and investment banking – and couldn’t resist. As a German institution, it benefitted from European economic and banking system fragility. Not surprisingly, all the abundant cheap finance ensured the bank found myriad avenues to get itself into trouble. And then the Draghi ECB, along with global central bankers, lost their minds, with massive QE and negative rates inciting dislocation throughout the massive global bond and derivatives markets.'

<blockquote>'..Deutsche Bank is to the global government finance Bubble what Lehman was to the U.S. mortgage finance Bubble. Lehman may have been the catalyst, but the root of the problem was Trillions of mispriced securities, unsustainable home prices and deep structural impairment (financial and economic). Deutsche Bank is much larger today than Lehman was in 2008, and its tentacles are everywhere. The scope of the global government finance Bubble is multiples of the mortgage finance Bubble. Mispriced securities are in the tens of Trillions. Global structural impairment is unprecedented. There were lessons learned from 2008 – though most now work to bolster and prolong history’s greatest Bubble.

Deutsche Bank is rather clearly in trouble. But it is unclear if a crisis of confidence is imminent. This institution desperately needs to raise capital. Transparency is lacking with regard to Deutsche Bank’s massive derivatives portfolio. Their investment banking, prime brokerage and derivatives businesses, already thin on profits, will suffer. But as Germany’s largest bank, it is not clear that as an institution it’s today as vulnerable to a run as Lehman was in 2008.

..

Deutsche Bank is a potential catalyst for the bursting of the global Bubble. It has company. Though it is almost unique as a poster child of the mess global policymaking has made of things. After the 2008 crisis, Deutsche Bank had the opportunity to take market share in global prime brokerage, derivatives and investment banking – and couldn’t resist. As a German institution, it benefitted from European economic and banking system fragility. Not surprisingly, all the abundant cheap finance ensured the bank found myriad avenues to get itself into trouble. And then the Draghi ECB, along with global central bankers, lost their minds, with massive QE and negative rates inciting dislocation throughout the massive global bond and derivatives markets.

Deutsche Bank exemplifies the fragility of the global financial system. And this vulnerability is associated directly with egregious monetary stimulus – past and present. Trouble at Deutsche Bank comes at an inopportune for the unsound European banking system. It comes at a tough time for Merkel, the Bundesbank and the German government more generally. The political backdrop makes it difficult for the German government to support its largest bank. A faltering Deutsche Bank will only toughen German public enmity toward ECB policymaking.

To be sure, Deutsche Bank is illuminating the serious predicament associated these days with being a highly leveraged financial institution in a world of acute monetary disorder and price instability. They are certainly not alone. Sinking global bank stocks provide another important crack in global confidence – confidence in finance and confidence in policymaking. Importantly, the Deutsche Bank imbroglio comes as faith in central banking is waning. It comes with geopolitical tensions running high.'

- Doug Noland, A Take on Deutsche Bank, October 1, 2016</blockquote>


Context (Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'

<blockquote>'..It is hard to be sure the massive bank bail-outs of 2008 were such a great idea..'

Deutsche Bank: What the Hell is Going On? September 30, 2016

(Monetary) bureaucracy - '..our organizations are .. hostages to an ideology that is, in a real sense, inhuman.'


'..economic growth cannot be conjured into being by top-down interventionism in the form of monetary pumping and deficit spending..'</blockquote>