[Revi]

Here's a letter to reassure employees of Deutsche Bank a couple of days ago:
https://www.db.com/newsroom_news/2016/ghp/a-message-from-john-cryan-to-deutsche-bank-employees-0902-en-11392.htm

Here's Zero Hedge's take on it:

http://www.zerohedge.com/news/2016-02-1 ... ecord-high

[Revi]

Here's a word from the chairman of Deutsche Bank to his employees:

"You can tell them that Deutsche Bank remains absolutely rock-solid, given our strong capital and risk position."

See, it's all fine now.

[EdwinSm]

Why banks are being hit now? A report that links things back to the last crash and the attempt to make bond holders pay for any future crash....

$this->bbcode_second_pass_quote('', '.')....
New rules mean that, when disaster beckons again, some lenders to the banks would see their bonds (in effect IOUs) turn into shares. In other words, they may not get their money back in full, or on time. These new IOUs are called Cocos - short for contingent convertible bonds.

In short, they are not getting the security lenders usually get.

The removal of this implied government guarantee has made the value of those IOUs fall and threatens banks' ability to sell more in the future. That makes banks less stable and, hey presto, here we are with some bank shares down 40% since the beginning of the year.

Like it or not, banks still operate as the bloodstream of the financial system. When the arteries of funding get blocked - you risk cardiac arrest. ....

[vox_mundi]

$this->bbcode_second_pass_quote('Revi', 'H')ere's a word from the chairman of Deutsche Bank to his employees:

"You can tell them that Deutsche Bank remains absolutely rock-solid, given our strong capital and risk position."

See, it's all fine now.

[Plantagenet]

At least we're OK here in the US. The unemployment just dropped below 5% so we're at full employment, and according to the government the US economy is doing great. As Obama said just a few weeks ago:

OBAMA: Anyone claiming that America's economy is in decline is peddling fiction.

Cheers!

[Revi]

I think the Deutsche Bank fiasco is what dragged markets down this morning. It seems like around 2:30 they did something to pull it back up again.

[Revi]

And it's not just Deutsche Bank! Credit Suisse is having problems as well:

http://www.zerohedge.com/news/2016-02-1 ... tsche-bank

[Revi]

$this->bbcode_second_pass_quote('Plantagenet', 'A')t least we're OK here in the US. The unemployment just dropped below 5% so we're at full employment, and according to the government the US economy is doing great. As Obama said just a few weeks ago:

OBAMA: Anyone claiming that America's economy is in decline is peddling fiction.

Cheers!

[EdwinSm]

They are doing something to say they are OK. I don't know enough about the ins and outs of this to say if it is a good move or an act of desperation or not, but the share price has risen

$this->bbcode_second_pass_quote('', 'D')eutsche Bank has announced that it is to buy back more than $5bn (£3.5bn) of its own debt.

It is buying €3bn (£2.3bn) of euro-denominated bonds and $2bn of dollar-denominated ones.

Rumours on Wednesday that it was about to buy the debt sent Deutsche Bank's shares soaring.

The confirmation on Friday gave the shares a bit of a boost, although they had already been up by about 10% earlier in the day.

Deutsche Bank said that it had the resources to make the purchases without changing its funding plans.

"The bank's strong liquidity position allows it to repurchase these securities without any corresponding change to its 2016 funding plan," it said.

The buyback has been taken as a signal of the bank's robustness.
....

[tlowellb]

Where does the money come from for the bank to buy back the debt?

[Rod_Cloutier]

$this->bbcode_second_pass_quote('', 'W')here does the money come from for the bank to buy back the debt?

[peripato]

$this->bbcode_second_pass_quote('Plantagenet', 'A')t least we're OK here in the US. The unemployment just dropped below 5% so we're at full employment, and according to the government the US economy is doing great. As Obama said just a few weeks ago:

OBAMA: Anyone claiming that America's economy is in decline is peddling fiction.

Cheers!

[EdwinSm]

UK & EU Bank Bonds fail to sell

In itself this may not be too much of a problem, but it does weaken the banks' positions so may be one factor in a possible bank crisis. I am not expecting any immediate problem, but this seems to indicate that things might be building up to some problem later (unspecified time prediction - as I do not know enough to really give any predictions regarding the health of the banking industry).

$this->bbcode_second_pass_quote('', 'U')K and European banks have failed to sell any so-called Coco bonds this year amid worries about the health of the banking sector.

Cocos - short for contingent convertible bonds - are turned into shares if a bank starts to struggle.....

Banks had planned to issue €40bn of Coco bonds this year, according to Dealogic.

That leaves them facing a financing gap at a time when analysts are warning that Europe's banks must also deal with rising costs and slowing revenue....

[Revi]

Will they have trouble without the Co Co bonds? It seems like they have papered over the Deutsche Bank crisis for now, but will it re-emerge?

[vox_mundi]

Wall Street falls sharply on worries about banks

$this->bbcode_second_pass_quote('', '[')img]https://si.wsj.net/public/resources/images/BN-PZ797_deutsc_G_20160927094453.jpg[/img]

Wall Street dropped on Thursday, weighed down by Apple as well as selling in Wells Fargo, Citigroup and other major banks as investors worried about the health of Deutsche Bank.

The S&P 500 financial index declined 1.49 percent after Bloomberg reported that some hedge funds have withdrawn excess cash and positions held at the German lender.

Growing concerns over the stability of Germany's biggest bank have pushed its shares to record lows and its U.S.-listed stock on Thursday tumbled 6.7 percent.

"This Deutsche Bank story is really casting a very long shadow over equity markets," said Peter Kenny, senior market strategist at Global Markets Advisory Group, in New York. "In some respects, it speaks to fears over large money-center banks having serious problems, and the last time we had that conversation was the financial crisis."

Adding to negative sentiment in the banking sector, Wells Fargo & Co lost 2.07 percent after U.S. lawmakers rebuked CEO John Stumpf over his handling of sales abuses.

Citigroup dropped 2.28 percent and JPMorgan Chase fell 1.59 percent.

The CBOE Volatility Index, a gauge of near-term investor anxiety, jumped 14 percent.

[onlooker]

$this->bbcode_second_pass_quote('', 'T')he potential collapse of Deutsche Bank and the systemic risk it poses to banks and the European financial and monetary system moved into the German political sphere yesterday. The German government denied it was preparing a rescue of the embattled bank and the Bundestag attempted to ask questions of ECB President Mario Draghi about the causes of the "systemic risks" posed by the bank.

[Plantagenet]

Merkel generally opposed bailouts of banks in other EU countries. She kept kept saying they should clean up their act and be more like DB and other German banks. Now that DB is in trouble, Ii will be interesting to see if Merkel flip flops and backs a bailout for DB.

[peripato]

$this->bbcode_second_pass_quote('Revi', 'H')ere's a word from the chairman of Deutsche Bank to his employees:

"You can tell them that Deutsche Bank remains absolutely rock-solid, given our strong capital and risk position."

See, it's all fine now.