Europe Closes "On The Lows": Deutsche Bank Plunges 11% To 7 Year Lows

Tyler Durden's picture

BTFD? Deutsche Bank stock crashed over 11% today (the most since July 2009) to its lowest since January 2009 record lows. We have detailed at length why this is a major systemic problem and we wonder how anyone can view this chart and not question their full faith in central planners engineering of the 'recovery'. Nothing is fixed and it's starting to become very obvious!

Does this look like a buying opportunity? At EUR13.465 today, DB is within pennies of the all-time record lows of EUR13.385...


As we explained earlier, since Europe unleashed their "Bail-In" regulations, European banks have utterly imploded with Deustche most systemically affected as it seems more than one person is betting that Deutsche will be unable to raise enough capital and will be forced to haircut depositors on up in the capital structure.

Finally - for those desperate dip-buyers hoping for another move from Draghi - don't hold your breath... As Deutsche Bank itself warned, any more easing by The ECB or BOJ will only hurt banks (and certainly Deutsche). In other words, they are all officially trapped now.

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Bell's 2 hearted's picture

And EXACTLY why should I EVER pay attention to a single thing DB's tool Jim Reid says??

viahj's picture

time to ramp up the US markets, unless the fear is tangible

remain calm's picture

The bank will be nationalized.

Truther's picture

DB will fucking blow up and burn.

SumTing Wong's picture

We need to watch CNBC instead...they would properly tell us that Europe closed "not off the lows."

Tall Tom's picture

DB will fucking blow up and burn.




As DB will the Global Economy.






Time is running out.


I cannot be happier. We are nearing the end of the fraud and corruption.

Soul Glow's picture

Luckily the migrants are bringing a lot of wealth to Germany....oh wait.

KnuckleDragger-X's picture

DB is nationalized in everything but name. I don't think the government wants to touch it, but they may not have a choice.....

curbjob's picture

Creditanstalt 2.0 ...

now all we need is a little nationalist strongman that can rally the sheep around a common enemy. 


and then of course there will be the Russian winter .... 

franzpick's picture

"Nationalize" the bank, socialize the losses: Try it here again in the u.s. - at your own risk.

holgerdanske's picture

I think that could well be right.

Poor Germans, they only get something when it costs them money. Have you ever heard of any bank being nationalized when it makes money|??

And they cannot stuff money under the mattress, because they are removing the EUR500 note.

In any case the bed is fully occupied by Syrian refugees.

The whole thing is about to blow up, and not one second too soon!


ThroxxOfVron's picture

"The bank will be nationalized. "

NO.  It will not.


GDP of Germany: £2.74 Trillion

DB total derivatives exposure: £54.7 Trillion


The ECB cannot even touch this.  

DB will probably destroy the ECB and the Euro when it blows.

The FED and the IMF might try to keep the collapse from becoming disorderly via an exponentially larger than the 2008/2009 Bailout blitz; but, without annulling and collapsing the derivatives stack -internationally, including with counterparties such as the other international TBTF and the CBs, it will be pissing in the wind.

Whistling past the graveyard...

DB should have been broken up in 2009 along with the rest of the TBTF.

GRDguy's picture

Geez, think of all those premiums paid to the derivative writers, for "insurance" that will never be paid.  Now that's a "zero hedge."

Tall Tom's picture

It will take out the World Economy.


"Shoud have beens" are not...period.



Government needs you to pay taxes's picture

Time to make sure your food, fuel, and ammo supplies are topped off and ready to use.

Tall Tom's picture

The bank will be nationalized.

It will be far too late for that. There are no fixes.



stocktivity's picture

How do you nationalize $53 trillion in derivatives?

ThroxxOfVron's picture

"How do you nationalize $53 trillion in derivatives? "


It isn't possible.    

Anyone discussing such nonesense is deeply compromised or an utter fool.

One might as well ask how a cow can jump over the Moon.

Just because the sentance structure conforms to rules concerning sentance structure does not mean that the sentance makes any sense or that the concept is valid, the assertion or question remotely rational, viable or true.

It's double-speak, baby-babble, ebonic ignored.

_ConanTheLibertarian_'s picture

Some folks probably read Zero Hedge.

BiPolarFrenchman's picture

Bailouts! Just what the doctor ordered for disaffected Germans.

Miss Expectations's picture

forced to haircut depositors = Corzine Option

Herdee's picture

European banks are also the most exposed to emerging markets.As if they don't have enough problems right in their own back yard.The biggy still remains,that is why do authorities still try to hide the extent of their gold manipulation schemes?Merkel,you sly ol' fox meeting with the head terrorist running Turkey.Send more money for refugees.

FreeShitter's picture

Bailins on the way.....First you flood the country with 3rd world hordies and then you crash the banks, implement nirp just to finish off who's left....cant let a manufactured crisis goto waste.

ThroxxOfVron's picture

Bail-ins, if undertaken: will be simple theft under cover of the collapse.

There are no where near enough in the entirety of DB's outstanding bonds, equity and deposits to cover more than a tiny fraction of the bad debt and derivatives exposure.

Fractional reserve banking?   Not even.  This level of leverage is simply impossible with simple fractional reserve even if one were to imagine that the entirety of German GDP existed in the form of deposits solely deposited within DB.  

Only debt pyramiding, rehypothecation chaining and naked round-robin derivatives underwriting could generate this level of notional leverage..

Unbacked derivatives emission?   The AIG lesson will be revisited.  Maybe someone will learn something this time..

The derivatives exposure/stack is not sequestered within DB.  The entirety of the leverage is mirrored and likely equalled by that of the counterparties.  The TBTF are all leaning on each other; so when one collapses -as per with AIG and Goldman Sachs- the counterparties collapse as well...

Commodities/equities speculation by the DB itself?   A perfect argument for a globabl Glass-Steagal construct.    -IF Nation X didn't/doens't wanna participate then they can be unhooked from SWIFT.ect. and locked out of global trade/clearance markets..


NONE  of the above constitute intermediation activities.

Loans were NOT made with deposits; but were generated out of thin air at origination -thus the deposits were never actually loaned out, and seizure of them constitutes nothing more than a theft.

Squid Viscous's picture

Tyler you're supposed to say not "off the lows"...

Making a quick popcorn run now, next 24 hours could get real interesting

savagegoose's picture

reminds me of the multi billionaire in germany that threw himself inforont of a train because he lost half his wealth! if  any of you bankers need any support, i 'll post the rail time tabl website

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Feb 8, 2016 11:58 AM

I'll just leave this here...

new game's picture

bail ins coming - lol to anyone not getting their cash out. and looking right into the mirror, oh thats right i got the cash out, never mind...

Soul Glow's picture

There is no upside to being in the stock market right now.  The price of the stocks are overvalued when using simple P/E ratios, but also the corporations are using gimmicks such as channel stuffing, one offs, et al to cook their books.  Also these corporations were doing buybacks at the top of their stock price - see Apple, Hess, and Bed Bath and Beyond as examples.  So they made their shareholders take the burden of a price decline.

Cntral banks have lost control - as they never really had it they were just doing insane policies that gave a lift to the made up markets for a few years, and now you can see how it will all come crashing down in the coming months.

Exit through the gift store's picture

Quick! we need a crisis! Or a war! or both!

cpnscarlet's picture

Jim Willie (jackass) may be finally "right" after three years.

But that's still WRONG in my book.

Michigander's picture

And I'll bet your one of those shmoes that buys a stock and then checks your P/L 12 times a day. Three years is nothing in this global game of thrones. Better to be 3 years early than 1 day late.

Iam Yue2's picture

Time looks ripe for a Warren Buffett $5 Billion Investment Splurge. 

new game's picture

warren on a plane to germany. yup, after, of course chatting with janet and mario. no risk huge discount corp bond buying. him and jeffy playing bridge with billy lately? invite o you fuckers, you a bunch a rassicts?

Deflationist's picture

The smartest insider traders of DB were Anshu Jain and Jürgen Fitschen.  Got themselves pushed out into lifeboat with golden canopy.

Deflationist's picture

The smartest insider traders of DB were Anshu Jain and Jürgen Fitschen.  Got themselves pushed out into lifeboat with golden canopy.

Government needs you to pay taxes's picture

Not nearly as smooth as Lou Pai.  Didnt Lou end up being the largest private landowner in the state of Colorado?  THAT guy was fucking genius!

tarabel's picture



Cosndiering the strength of the Euro back when DB made its official low and the currently much weaker Euro of today, I would suggest that it has, in fact, exceeded its previous low point. 

But, silly me, who talks in real terms any more? 

ghostzapper's picture

Behold the Refugee Employment Activation Act - using refugees to guard DB retail ATM locations.  

Chuckster's picture

They should have confiscated the migrants wealth and neutered them.  They will have to go back to the old system.

No one mentions that in ww2 the Germans had many thousands of Muslims in the German army. 

For decades the Germans have been bringing in Muslims to work when times were good and sending them home when things slowed down.  I guess they are now learning that when they immigrate you can't send them home when you want to.  Damn!

Pabloallen's picture

What number does it have to be before they jump out the windows ????

bbq on whitehouse lawn's picture

That would depend on whos money they lost.

MadVladtheconquerer's picture
MadVladtheconquerer (not verified) Feb 8, 2016 12:17 PM

Remind me why this is necessarily a bad thing esp when one is replete w/ cash and shorts?

Enjoy the ride down, beotches!!!!!!!!  Just like Cam Newton getting gang-buttfucked on natl TV!