Deutsche Bank Selling Resumes After CEO Assures Employees Bank Is "Absolutely Rock Solid"

Tyler Durden's picture




 

Yesterday's desperate scramble by Deutsche Bank to comfort markets about its liquidity position worked, for about three hours. And then, the bank which really should just keep its mouth shut, did the opposite and reminded an already panicked market just how "serious" things are, in the parlance of Jean-Claude Junkcer, when in an internal memo, the CEO assured his workers that:

  • DEUTSCHE BANK CEO: CAP STRENGTH, RISK POSITIONS ’ROCK SOLID’

That was the good news. The bad news:

  • DEUTSCHE BANK TO INFORM STAFF IN COMING WEEKS ABOUT COST CUTS

Here is the full note released from DB CEO Cryan:

Dear Colleagues,

 

When I first became your colleague and Co-CEO seven months ago, I promised to increase communication from the Management Board to you. I made clear that when we had something to communicate, I wanted you to hear about it first from us. That is why I am writing to you today.

 

Last week, at one of our scheduled off-sites, the Management Board talked about progress on our strategy, and how recent market volatility and forecasts for slowing economic growth might impact our clients and us. Volatility in the fourth quarter impacted the earnings of most major banks, especially those in Europe, and clients may ask you about how the market-wide volatility is impacting Deutsche Bank.

 

You can tell them that Deutsche Bank remains absolutely rock-solid, given our strong capital and risk position. On Monday, we took advantage of this strength to reassure the market of our capacity and commitment to pay coupons to investors who hold our Additional Tier 1 capital. This type of instrument has been the subject of recent market concern.

 

The market also expressed some concern about the adequacy of our legal provisions but I don’t share that concern. We will almost certainly have to add to our legal provisions this year but this is already accounted for in our financial plan.

 

The Management Board also discussed its vision for the bank. For us, a vision defines our aspiration for the bank, and what we want it to be. It’s important because it creates clarity of purpose and unites all of us in achieving common and worthy goals.

 

Our vision is to be a trusted and successful bank. We aim to deliver financial solutions, technology, products and services that exceed our clients’ expectations. We want to be the most respected financial services provider across all customer segments in Germany, our vital and strong home market; the number one bank for our corporate, institutional and fiduciary clients in Europe; and the best foreign bank in the United States and Asia.

 

We are achieving our vision in a number of ways, including:

 

First, we are investing in hiring more people in Equity Sales and Research to serve our clients’ needs and to regain our leadership in the equities markets.

 

Second, we are investing in bringing on board some talented senior bankers into Corporate & Investment Banking.

 

Third, we are investing in client-facing technology, particularly in our retail banking and asset management businesses.

 

Finally, I am personally investing time to resolve successfully and speedily open regulatory and legal cases. I want to remove the uncertainty among staff and in the market that these cases cause. A small group of senior people, led by me, will focus on this. For everyone else, we ask you to continue to focus on our clients and on the implementation of our strategy.

 

In the weeks ahead, my colleagues on the Management Board will update you on a number of topics, including customer focus, the work we’re doing on costs, and our priorities for developing employees. We want to make transparent where we are in our strategic efforts. This will add to accountability and help track progress.

 

We want to hear from you too. What are clients telling you? How do you think we should build a better Deutsche Bank? As ever, please contact me directly via the feedback tool on our intranet.

 

On behalf of the entire Management Board, thank you for your ongoing hard work. Let’s all work together to support this vision.

 

Yours sincerely,

 

John Cryan

Or, said otherwise, "Deutsche Bank is fine."

However, with numerous analogies being made between the German bank with the soaring default risk and Lehman or at least Bear, that may have been the absolutely worst thing for the bank to note at a time when the market is perfectly happy to interpret any assurance of ongoing solvency and viability as a desperate attempt to boost confidence, and resume selling the stock and buying even more default protection, which is what it has done, and as of last check DB stock just turned negative in German trading.

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Tue, 02/09/2016 - 08:22 | 7160147 JustObserving
JustObserving's picture

It's not completely true until it is officially denied.

Will Deutsche Bank take down Germany?

Tue, 02/09/2016 - 08:24 | 7160154 VinceFostersGhost
VinceFostersGhost's picture

 

 

Remain calm.....and sell.

Tue, 02/09/2016 - 08:26 | 7160167 NoVa
NoVa's picture

USING ALL CAPS MEANS WE ARE REALLY, REALLY ARE SERIOUS AND BEING TOTALLY HONEST AND SPEAKING REAL LOUD SO YOU ALL CAN HEAR WHAT WE ARE SAYING.

 

REMAIN CALM - ALL IS WELL !

 

 

NoVa

Tue, 02/09/2016 - 08:28 | 7160174 CheapBastard
CheapBastard's picture

"It's contained."

Tue, 02/09/2016 - 08:29 | 7160178 R.R.Raskolnikov
R.R.Raskolnikov's picture

Ebola outbreak at DB.

Tue, 02/09/2016 - 08:37 | 7160218 TeamDepends
TeamDepends's picture

It's just a flesh wound.

Tue, 02/09/2016 - 08:46 | 7160250 onewayticket2
onewayticket2's picture

QUESTIONS?

please contact Deutsche Bank's new head of Corporate Communications:  Richard Fuld

Tue, 02/09/2016 - 08:52 | 7160273 NoDebt
NoDebt's picture

"There's not a damned thing wrong with this airplane."  <said as he's putting on his (golden) parachute>

I give it two weeks before DB announces plans to "rase capital".

 

Tue, 02/09/2016 - 09:13 | 7160290 Supernova Born
Supernova Born's picture

Molten lava is rock.

It isn't solid.

...and DB isn't in the kitchen, it's in the caldera.

Tue, 02/09/2016 - 09:38 | 7160475 Haus-Targaryen
Haus-Targaryen's picture

I just cashed out daily checking at the Taunusanlage Filiale (Deutsche Bank's #1 branch) from the ATM. 

As the machine was counting out some 2500€ in 100's a bank employee came over and asked if everything was alright. 

I told him I didn't want to get "Cyprus'ed"  and he told me I had nothing to worry about and encourage me to redeposit. 

What I found interesting is some obsecure teller at Deutsche Bank's main branch knows the verb "Cyprus'ed"  

Tue, 02/09/2016 - 09:56 | 7160581 Victor von Doom
Victor von Doom's picture

So...the bank teller was informed, yet still a fuckwitt? No wonder this world is stuffed.

Tue, 02/09/2016 - 11:32 | 7161212 BTFDemocracy
BTFDemocracy's picture

Haha. Here's a story: I deposited a check at local bank from Deutsche Bank over a week ago; a check from an account at DB that holds a good balance. Today the local bank called and told me there is a problem with the check, and that I must come to the local bank to talk. Gave me specific instructions with whom to meet.

Talk about coincidence.. keep you posted.

Tue, 02/09/2016 - 09:26 | 7160416 unplugged
unplugged's picture

I picked the wrong week to quit sniffing glue

Tue, 02/09/2016 - 10:05 | 7160632 AssN9
AssN9's picture

raze

Tue, 02/09/2016 - 08:59 | 7160295 chinoslims
chinoslims's picture

After all these years, I never got over the name Dick Fuld

Tue, 02/09/2016 - 09:25 | 7160414 Jim in MN
Jim in MN's picture

"DB Selling Resumes"

OK, I'll help 'em out.  I will pay.....let's see....negative 1,000 Euros per resume.

Gold only.

Tue, 02/09/2016 - 09:48 | 7160522 iinthesky
iinthesky's picture

These motherfuckers and thier code languages and euphemisms!  'increase our LEGAL PROVISIONS'?!?! 

 

fucking asshole can't just say we gotta raise money or else we are fucked.  No,  now its called legal provisions. 

Tue, 02/09/2016 - 09:59 | 7160593 Jim in MN
Jim in MN's picture

Could it be, finally, simply Scapegoat Time?

Wouldn't it be soooooo ironic and effective if DB and Merkel were the 'stuckees'?

Tue, 02/09/2016 - 08:49 | 7160258 philipat
philipat's picture

Douche Bank must be Begging Cramer NOT to go on air and say that "It's fine"....

Tue, 02/09/2016 - 13:50 | 7161789 StychoKiller
StychoKiller's picture

"Please do not worry."

Tue, 02/09/2016 - 08:39 | 7160220 Supernova Born
Supernova Born's picture

Hitler "Downfall" Deutsche Bank parody video should be on Youtube by later today.

Tue, 02/09/2016 - 08:45 | 7160247 SheepRevolution
SheepRevolution's picture

I believe rocks at the bottom of the world seas are also very solid.

Tue, 02/09/2016 - 09:12 | 7160341 RockySpears
RockySpears's picture

Part I has been there for 5 years or so, when Hitler is made president of DB.  Someone even had the foresight then, to have a "to be continued" at the end.

Tue, 02/09/2016 - 10:26 | 7160788 More Ammo
More Ammo's picture

Since he is already VP...

 

 

Hitler promoted to V.P. of Deutsche Bank.

https://www.youtube.com/watch?v=OzIzK1X7jsM

Tue, 02/09/2016 - 08:30 | 7160189 waterwitch
waterwitch's picture

We Kaiser Sousa-ed some folk.

Tue, 02/09/2016 - 09:44 | 7160501 onewayticket2
onewayticket2's picture

"Dont Corzine me, bro"

Tue, 02/09/2016 - 08:45 | 7160245 Bangin7GramRocks
Bangin7GramRocks's picture

Isn't this the point in the story where high ranking executives begin to retire for "health reasons"?

Tue, 02/09/2016 - 09:46 | 7160510 3rdWorldTrillionaire
3rdWorldTrillionaire's picture

They all did... last summer.

Tue, 02/09/2016 - 09:58 | 7160592 Victor von Doom
Victor von Doom's picture

Nah, they just want to spend more time with their families.

Tue, 02/09/2016 - 09:10 | 7160323 firstdivision
firstdivision's picture

https://finviz.com/futures_charts.ashx?t=HG&p=m5

 

Keep your eye on the ball.  Nobel, Trafgura, Freeport, and Glencore will blow this shit up quicker.  Also, Vitol and Murcuria are gonna suffer big losses due to energy. 

Tue, 02/09/2016 - 09:10 | 7160333 Janet Shalom Be...
Janet Shalom Bernanke's picture

Wonder if the employees and shareholders are calm knowing that Draghi has their back.

In the upcoming March money printing exchange for toxic asset spree by Draghi, bad bank debt and stock are likely to be purchased!  

too bad Deutsche Bank will have already fired the bulk of staff.  The only thing that can calm markets now is a corrupt central banker being sentenced to death by his own government.

Tue, 02/09/2016 - 09:48 | 7160520 EddieLomax
EddieLomax's picture

To paraphrase Reagan, the ten most terrifying words in the English language are "I'm from the central bank and I'm here to help"

Tue, 02/09/2016 - 08:29 | 7160175 R.R.Raskolnikov
R.R.Raskolnikov's picture

Remain calm and buy CDS.

Tue, 02/09/2016 - 09:12 | 7160343 firstdivision
firstdivision's picture

You mean sell them now.  Don't forget that the bankers decide if a bank has triggered an event.

Tue, 02/09/2016 - 08:29 | 7160176 Jtrillian
Tue, 02/09/2016 - 08:38 | 7160222 new game
new game's picture

said cryan...

Tue, 02/09/2016 - 08:36 | 7160216 wildbad
wildbad's picture

is that an official denial?

Tue, 02/09/2016 - 08:30 | 7160186 AssN9
AssN9's picture

Not if they paid attention to Iceland

Tue, 02/09/2016 - 08:31 | 7160191 Bernoulli
Bernoulli's picture

Will Deutsche Bank take down the worldwide financial system?

Fixed.

Tue, 02/09/2016 - 08:34 | 7160208 RaceToTheBottom
RaceToTheBottom's picture

If they had only freed Jon Corzine.....

Tue, 02/09/2016 - 08:38 | 7160223 Jethro
Jethro's picture

Hahahahahahahahaha!

Tue, 02/09/2016 - 08:35 | 7160213 new game
new game's picture

digital cash is but a meer click away. trillion dolla swaps for euro otta fix this pesky thingy call underlying asset quality...

Tue, 02/09/2016 - 08:42 | 7160236 new game
new game's picture

imagine the scramble behind the scenes to cobble together bond packages that only mario would purchase undwritten by euro sheeple.

Tue, 02/09/2016 - 10:00 | 7160603 Victor von Doom
Victor von Doom's picture

Why not really fix it? - a quadrillion ought to do the trick.

Tue, 02/09/2016 - 08:33 | 7160206 surf0766
surf0766's picture

They took it down once. They can do it again

Tue, 02/09/2016 - 08:40 | 7160227 ZH Snob
ZH Snob's picture

The check's in the mail.

 

I promise not to come in your mouth.

 

Deutsche Bank is fine.

Tue, 02/09/2016 - 09:07 | 7160304 amanfromMars
amanfromMars's picture

The check's in the mail.

I promise not to come in your mouth.

Deutsche Bank is fine. ….. ZH Snob

 

Oh please, ZH Snob, don't be a selfless spoilsport.

Tue, 02/09/2016 - 08:43 | 7160238 Janet Shalom Be...
Janet Shalom Bernanke's picture

Farfigneuton, pack your desk, you are FIRED, but bank is fine.

 

Tue, 02/09/2016 - 09:45 | 7160505 Ponk
Ponk's picture

I'm sure some people here will appreciate this recent headline the SZ:

301 000 Deutsche haben den kleinen Waffenschein - Tendenz steigend
Tue, 02/09/2016 - 08:24 | 7160155 Latitude25
Latitude25's picture

Rock solid as in pilfering Venezuelan gold?

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