After Crashing, Deutsche Bank Is Forced To Issue Statement Defending Its Liquidity

Tyler Durden's picture

The echoes of both Bear and Lehman are growing louder with every passing day.

Just hours after Deutsche Bank stock crashed by 10% to levels not seen since the financial crisis, the German behemoth with over $50 trillion in gross notional derivative found itself in the very deja vuish, not to mention unpleasant, situation of having to defend its liquidity and specifically assuring investors that it has enough cash (about €1 billion in 2016 payment capacity), to pay the €350 million in maturing Tier 1 coupons due in April, which among many other reasons have seen billions in value wiped out from both DB's stock price and its contingent convertible bonds which are looking increasingly more like equity with every passing day.

DB did not stop there, but also laid out that for 2017 it was about €4.3BN in payment capacity, however before the impact of 2016 results, which if recent record loss history is any indication, will severely reduce the full cash capacity of the German bank.

From the just issued press release:

Ad-hoc: Deutsche Bank publishes updated information about AT1 payment capacity


Frankfurt am Main, 8 February 2016 – Today Deutsche Bank published updated information related to its 2016 and 2017 payment capacity for Additional Tier 1 (AT1) coupons based on preliminary and unaudited figures.  


The 2016 payment capacity is estimated to be approximately EUR 1 billion, sufficient to pay AT1 coupons of approximately EUR 0.35 billion on 30 April 2016.


The estimated pro-forma 2017 payment capacity is approximately EUR 4.3 billion before impact from 2016 operating results. This is driven in part by an expected positive impact of approximately EUR 1.6 billion from the completion of the sale of 19.99% stake in Hua Xia Bank and further HGB 340e/g reserves of approximately EUR 1.9 billion available to offset future losses.


The final AT1 payment capacity will depend on 2016 operating results under German GAAP (HGB) and movements in other reserves.

The updated information in question:

As a reminder, the last time serious "developed market" banks had to publicly defend their liquidity, the result was a multi-trillion taxpayer bailout.

However, there is probably some time before that happens: first German regulator Bafin will likely ban short selling in Deutsche Bank shares. That always is the first step in the endgame.

For now, however, the market is no longer asking questions but merely selling: Deutsche CDS has entered the dreaded "viagra" formation at 245 bps and going vertical.

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Soul Glow's picture

That's just being silly.

bigkahuna's picture

they are all cleaning out their offices...

Manthong's picture

They are probably checking the seat cushions in the lobby for loose change right now.



Deutshe Bank Press Release

" I know nothink, I know nothink ! I leave for Argentina in the eefenink. "

bob_stl's picture

It's safe to go back in the building!

EscapeKey's picture

i see the end-of-day "invisible hand of the marfed" levitation started 15 minutes early today



Lore's picture


NidStyles's picture

What interesting timing, bring in a bunch of mudslimes, and then collapse the economy.


I guess this is how the Tribe plans to keep the Nationalist revolt in check, with an army of borderline retards.

Sirius Wonderblast's picture

More likely to provoke revolt than quash it, surely? No one is going to accept the influx, or the Euro-status quo, when the country's visibly in the scheiss and people are struggling?

Cliff Claven Cheers's picture

"preliminary and unaudited figures"

All you need to know.

L_Estasi_dell_Oro's picture

They are the distraction, the lighning rod. When everything collapses, anger will turn to them, not to Mr. Global

OverTheHedge's picture


Sorry,but that would cause people to question the validity of of the banking system.

Many and varied bailouts,bailins and general bailing to follow shortly. It may not help, however.

Do we actually think that the fall is starting? It's been SO many years in the making, could this actually be it?

Not Goldman Sachs's picture

Lore - you need to lay off the hopium pipe.

Lore's picture

I think my position is shared by many other thinking people, not least of which being fellow ZHers like yourself.

It's time to stop rewarding pathological behaviour. End of story.

Herd Redirection Committee's picture

Wait, so is this the fault of 'White people' or the 'Patriarchy' or both?

Divide and Conquer, bitchez!  First world problems! (my point being, good luck convincing women or non-whites about the problems society faces, thanks to [central] banksters)

peddling-fiction's picture

Denial equals CONFIRMATION, otherwise you ignore

Dig Deeper1's picture

Why?  I'm fairly certain the DB passed its stress test with flying colors.  Mostly red but still flying.

Ghost of PartysOver's picture

I almost feel sympathetic towards the average German Citizen with the muzzie problem and now the financial problem.  I said almost.  After all the Average German Citizen elected Merkel.  

curbjob's picture

Watch some German porn. It's the best medicine to snuff out any sympathetic feelings.

_ConanTheLibertarian_'s picture

Anyone in Europe remember the infamous RTL+ Tiroler soft porn?

That was so hilariously bad.

Ward cleaver's picture

Me too. Germans are hard working smart people sold down the river by that dipshit merkel, with the backing of the new zionecon world powers. If history is any predictor, look for a new nationalistic man to address the same issues they had in the past.

T-NUTZ's picture

You forgot about the FUCKINGROOVIN problem...

Soul Glow's picture

There's an old saying....

Jump you fuckers!

wide mouth kid's picture

it doesn't say "die Deutsche Bank, die".

it is German: it means "the Deutsche Bank, the".

(h/t the simpsons)

Durrmockracy's picture
Durrmockracy (not verified) Feb 8, 2016 2:46 PM

O' Douchey... you're done!

Cognitive Dissonance's picture

And don't forget all that depositor money. Plenty of cash on hand to pay the bills.

101 years and counting's picture

FDIC has ~$60B in funds to cover the $9 Trillion in deposits?  that'll be enough when shtf.  

FlipFlop's picture

they can always issue unlimited number of IOs. 


The famous last words used to be "you would not hit an elephant", now "we are liquid, we are drowning in liquidity..."

MrSteve's picture

FDIC is behind or more correctly, under, the banks' derivatives obligations. FDIC opposed this, but Dodd-Frank forces and Controller of the Currency overruled them and now the depositors are unsecured creditors of the FDIC-protected banks. And it's legal!

Tall Tom's picture

And don't forget all that depositor money. Plenty of cash on hand to pay the bills.


But aren't they burning those reserves to support their Stock Price???


Ooops. Did I let the cat out of the bag?

Lady Jessica's picture

An official denial.  Oh dear.

tarabel's picture



And an immediate one issued after hours. Oh dearer.

thesonandheir's picture

I didn't believe a word of this until the offical denial.


Oh diddly dear.

101 years and counting's picture

didnt some german say "when shit gets serious, you have to lie"?

Lady Jessica's picture

Monsieur Juncker is Luxembourgeois