World's Most Systemically Dangerous Bank Crashes Back To Record Lows

Tyler Durden's picture

Despite all the exuberance over the Brexit bounce in US (and UK) equities, never minds bonds, FX, and credit being far less enthusiastic, Deutsche Bank is plunging once again this morning. Having failed The Fed's stress test for the second year running and been diagnosed by The IMF as the world's most systemically dangerous financial entity, the giant Germanbank is getting slammed down almost 4% today, back near record lows as its 'Lehman-esque' path to devastation continues.

This is far from over!!

And if DB goes...


Then who's next?


As we previously conclude, considering two of the three most "globally systemically important", i.e., riskiest, banks just saw their stock price scrape all time lows earlier this week, we wonder just how nervous behind their calm facades are the executives at the ECB, the IMF, and the rest of the handful of people who realize just close to the edge of collapse this world's most riskiest bank (whose market cap is less than the valuation of AirBnB) finds itself right now.

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TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Jun 30, 2016 7:19 AM

Damn speculators...

mtl4's picture

If this bank's stock were at zero it would still be overly optomistic pricing.......the sooner it kicks the bucket the better.

Haus-Targaryen's picture

They won't let DB fail unless "they" want to kill the entire system & blame zeee Germans again for the world's problems.  

The EURO will go down in flames before they let DB fail.  

NoDebt's picture

Haus, last night I was thinking about whether the Euro might not just outlive the EU.  I decided it's not all that crazy an idea.

Haus-Targaryen's picture

I doubt it.  The Euro is a currency union built for political purposes.  The only reason this thing wasn't killed off already back in 2010 was due to sheer political will, market dynamics be damned.  When the political will for the EUR ceases to exist the currency might stumble along for a little longer, but would resemble the Hindenburg the first time someone got close to it with a lit cigarette.   

SomethingSomethingDarkSide's picture

I think that the EU makes more sense for the smaller countries binding together for economics of scale, but the political structure will have to break, hemmorrage, and be put into the ICU before that occurs.  Sounds like a safe investment to me, my Zimbabwian retail plays have just about run their course!  :P

doctor10's picture

naah...nothing wrong with Greece the Drachma couldn't fix better than the Euro

Same thing with Italy and Portugal and Spain
Their own currencies allow for sufficient retention of value within their borders that at least the banks would work locally

Its all about the asset -stripping of little countries and small groups of people. The asset -strippers pretty well cleaned out the USA 10-15years ago

Vampyroteuthis infernalis's picture

The EU would function well as a trading bloc and commond military defense zone. Beyond that point, it became a parasitic government sucking the life out of its' members.

ParkAveFlasher's picture

If you think Greece had wormy credit when the rock was upturned, you American ZHer's look around at all the many models of BMWs on the many roads and think for a moment how most of those massively engineered German machines were purchased via generous financing terms issued by the vendor.  Let me now step back and hope that sinks in.

2ndamendment's picture

The least of the problems in the US revolve around BMW's and how they are financed. At least you have an "asset" backing that debt up. Two much worse examples that come to mind are the mountains of credit card debt averaging $20K a person and $200K in student loan debt to get a 4 year degree. Add to that our federal debt of nearly $21 TRILLION and german auto's seem small by comparison, no? Oh and don't forget the $110 TRILLION (!!!) in unfunded liabilities. 

eurogold's picture

I live and work in Germany. I speak German perfectly. I would like nothing more than to watch DB burn to hell !

ArgentoFisico's picture

The Euro is a currency union built for FINANCIAL purposes. Politicians are just puppets

Haus-Targaryen's picture

Incorrect.  The EMZ is a currency union built for political purposes as the grouping of countries makes no economic sense, unless you accept Ghordo/Stalin's analysis that "quantity has a quality of its own."  

pods's picture

Germany needs to sell stuff.  Other (poorer) nations need to buy things (with debt).  Debt in Euros expands the amount of Euros, making it devalue along with everyone else's currency.

So Germany gets to sell stuff in a currency that is being expanded (by Greece et all) and keeps competitive on the world stage.



Haus-Targaryen's picture

We've heard this for year.  I don't buy it for premium (e.g., price elastic) products.  

Products that are price inelastic need a cheap currency, price elastic products actually do better under a stronger currency, especially when most raw materials have to imported.  

Germany's #1 car market is the US followed by itself and then China, then the UK.  All of which use different currencies than Germany does.  


peddling-fiction's picture

So, is GhordEUs putting his finishing touches on his EU reeducation camp programs?

He seems like the right happy camp director for ZH posters.

I am adding his real name Ghordius so he can find my comment.

Killdo's picture

Politicians are just puppets

psychopat-traitor puppets

LawsofPhysics's picture

Close, but I would put forth the proposition that the only reason the Euro hasn't died is because the Federal Reserve Note will perish as well...

Remember, The Fed is the One Bank for the entire western world.  The only reason the One Bank still stands at all is because the Asians/Russians still do not trust one another.  In terms of resources and actual productive capacity the Asians/Russians are now the worlds creditors...

The Fed and western debt remains "the cleanest dirty shirt" etc. but from where I sit it's getting harder to tell who's dirtier...

Haus-Targaryen's picture

While this theory would be credited, it fails to address why those in Rainbow land don't pull the EUR apart in an organized fashion.  

Said another way, the only way the EUR's failure would wipe out the USD is if it failed in an uncontrolled manner.  E.g., what would wipe out the USD would be the uncontrolled failure of the currency, not necessarily the failure of the currency alone.  

That being said, if the goal of the EUR was anything but political our "fearless leaders" could simply admit it doesn't work and break it apart in an organized and controlled fashion -- preventing the destruction of the USD (I think the dollar index would rise if the EUR was dismantled in a controlled fashion) of which you so speak.  

The EUR was built for political purposes, while the market keeps trying to rip it apart political reasons keep it together.  Once this political motive fails, the market will make quick work of the EUR. The sun will come up the next day.  The earth will keep turning.  Life will go on. 

AbbeBrel's picture


"if the goal of the EUR was anything but political our "fearless leaders" could simply admit it doesn't work"

Hence it *MUST* work and keep the sovereign debt machine alive. Hence Draghi and endless sovereign bond buying.

The sovereigns are thus on life-support. The banks, well, are the undead, as are pension promises through "life insurance" policies. There has to be some sort of cosmic joke if "life insurance policies" are also part of the undead in Draghi's army.

peddling-fiction's picture

Oh there are life insurance policies covering us.

But we are not beneficiaries of these government or corporate policies.

jcdenton's picture

The earth will keep turning ..


Actually it won't ..


It never has ..


Ask NASA ..

Pg. 1(5)           Summary
Pg. 11(15)       Program Overview
Pg. 122(125)   Report Documentation Page

THREE (3) mistakes reported in a row, all in the same report?

And truly, if ALL omitted, does it change -- the math?


So what other lies, or say, truths have they kept from us?


They have seem to have fooled most ..


They didn't fool me ..

Haus-Targaryen's picture

I think you've fooled yourself.  

Earth is round.  I am actually surprised this is even a debate.  I looked through this report.  Its a computer program that models aircraft dynamics assuming a flat fixed atmosphere non-rotating earth.  It assumes this as a basis for objective comparison.  They aren't letting slip the world is secretly flat.   

centerline's picture

forgot the /s ending, hopefully.

Tall Tom's picture





In order to discredit the site as "crackpot" the Intel Agencies salt the Comment Section.


We are engaged in an Information War.



Librarian's picture

the Asians/Russians still do not trust one another.

What sort of "trust" are you talking about?

It's not necessary for Russia and China to cobble together a team of career bureaucrats to form a new currency the "yurbel" to demonstrate continuing economic trust.

All they need to do is to engage in a continuing series of mutually beneficial trades.

That does seem to be happening.

Also these trades are not denominated in USD.

Am I misunderstanding the point you are trying to make?

I gave you the benefit of the doubt already and assumed that you weren't going to go all Fukuyama "End-of-History" and "Trust" on me.

CrimsonAvenger's picture

+1 for the Yurbel. Sounds like an eastern European car.

Librarian's picture

I think you're on to something big CA. 

The Yurbel could be throwback to the time when ugly austerity made its first appearance in auto design.  The Yurbel would begin with the hunchback frame of the Soviet Zaporozhets 965 with the strange-looking ears of the ZAP 966, and also the huge granddad's spectacles front end of the Chinese SH760.

I'm confident that there must be some old engineers from AMC that would be willing to come out of retirement who would work for booze and cobble this whole thing together for us.  Bottom-shelf booze and biker crank is the only logical explanation for the designs of the AMC Matador, Pacer and Gremlin.

Thanks.  I needed that good laugh.

Kirk2NCC1701's picture

Indeed. This ongoing saga has more drama, intrigue and corruption than The Game of Thrones.

BandGap's picture


Both China and Russia believe they can do it on their own by creating parallel systems, although they do agree on cooperation in many areas of financial interests.

Neither side has trusted the other since Mao, and then there is that huge border with all those untapped resources China sure could use.

My money is on Russia. They have clearly weathered the storm in the 90s and are fairly self sufficient. Maybe lack in agricultural necessities. But again they have suffered this way for generations, it is in their DNA to fight for Mother Russia.

The Chinese are a basket case, and the basket looks very western in appearance.

If the US went toe to toe with China my bet would be that Russia would watch.

Arnold's picture

Russian revenue and currency flow is overwhelmingly Oil related.

A strong but  undiversified basket.

nibiru's picture

After number of discussions here there are few possibilities:

1. Bail-out - a standard transfer of printed money from Schauble/Draghi (but those two hate each other) to cover the losses. 
Losers: You and me
Winners: DB shareholders, it buys time fro other banks but there will be a painful replay of 2008


2. Bail-in - as in the EU directive (yes there is a pan-European EU directive on this!) bank should use deposits of its shareholders and every one who trusted their money to bail-itself-in. Here the problem is the scale, with derivatives exposure worth 10x EU's GDP it may not be enough for DB. They can also put junk assets into divested DB 'junk' and the rest of healthy assets in DB 'Merkel4eva' and bankrupt the former. They have done it in Austrian Hypo Alde Adria

Losers: Me and You and depositors a lot of them

Winners: DB shareholders and Merkel for dodging the bullet.


3. They will allow DB to collapse (sic!)

ok it's not going to happen so figure out for yourself which option above is better for you

LawsofPhysics's picture

Correct.  Again, as I state above, it is getting really hard to tell who is "dirtier" these days.  Making real assets and ownership of productive capacity all that more attractive.

F22's picture

The Euro was actually created to be an alternative to the US dollar when it collapses under the weight of government debt.  As the reserve currency, its collapse without an alternative would have been catastrophic with worldwide commerce coming to a standstill.  The ECB has physical gold that bolsters its reserves, and that gold is marked to market....unlike the US Treasury that values its gold at the absurd amount of $42 per oz.  When gold is forced to revalue north of $55K per oz. due to the coming global financial crisis, the reserves for the Euro will be maintained and the Euro will continue to function. Read Eurogold an essay by FOFOA....

Ghordius's picture

"The Euro is a currency union built for political purposes"

the eurozone has to produce, export and so get the needed raw resources from the outside

there are things out there that could just shut their borders and somehow cope. or dream about doing it

the eurozone countries happen to believe that it's not realistic, at least not for them

is this not political purpose... enough?

if you see trade war looming at the horizon, you build something, perhaps an alliance, to cope with it

if you see currency wars looming at the horizon, you build something, perhaps an alliance, to cope with it

it's still the same principle: Si vis pacem, para bellum

DutchResistance's picture

Regarding the single European currency outlasting the EU:

...just call it something else , and it is not such a stretch.

Jtrillian's picture

I have a theory regarding this next economic decline.  I don't think they will stop it either.  Here is why: 

First, people are beginning to suspect that the markets are being propped up by the central banks and are beginning to speak out against it.  Long term ZH followers know this to be true as the central banks balance sheets are highly correlated to the markets since 2008.  In addition, the now infamous "nine charts" also show this recovery to be a false one.  It takes the masses a while to see the truth esp. with so much propaganda floating around out there these days. 

Keep in mind, that JPM, Goldman, Credit Suisse, Deutsche Bank, etc. can all profit on the way down by shorting the market.  This concept is foreign to almost everyone on Main St.  Arguably they need it to go down to maintain the illusion that markets are still in tact.  If it went up indefinitely in the face of things like Brexit, credit downgrades, and a myriad of other fundamental data, then people would see the market for what it is - a huge sham by way of a select few powerful banks colluding and conspiring to make money with no risk while bleeding the masses dry.  If the masses pulled out or even some of them did, then this would hurt the establishment.  They need participation to be profitable. 

Also, remember that the corrupt establishment never lets a good crisis to go to waste.  They can slam down the markets to create a subsequent panic.  Nothing convinces people to hand over their rights like fear.  Look at what has happened to the Bill of Rights since 9-11.  It didn't happen overnight.  There was a systematic dismantling of the 3,4,5,6,7,8,9th amendments to the constitution via the Patriot Act (I/II), NDAA, and various other forms of legislation which are in direct conflict with the constitution. 

That's not where it ends though.  There has been numerous calls to go after the 1st and 2nd amendments.  While both have already been limited, they could be eliminated altogether.  Feinstein has already stated that she wishes to limit the speech on the internet and now they are looking to go after "hate speech" as it has already been censored in different countries and various sites like Twitter.  While I do not support intolerance, it will not be long before anyone who voices dissent against their respective governments (and thus the power elite who control them) as extremists or terrorists. 

The same thing goes for the 2nd amendment.  In order to control the masses, they must not be able to defend themselves.  At the very least, any arms they are allowed to retain would not stand up to the modern military (arguably already the case).  I have witnessed calls to remove the 2nd amendment altogether since Orlando (or after any mass shooting for that matter).

If you want to know what the corrupt power elite's agenda is, just watch the mainstream media.  Pay attention to what they are telling you to think.  Russia is the "aggressor".  People are "too stupid and racist" to decide their own fate.  Guns are bad (except in those areas of the world that need "freedom"). Materialism is good.  Selfishness is good.  Screw the environment.  It's all right there in the open if you only take a moment to open your eyes.  If you want to know who the real threat is to their power, look at who they ignore - but to see this, you must turn to alternative media which is already being limited via search engines, and social media.  Soon, just subscribing to such alternative news sources will get you on "a list" - most likely one that prevents you from owning firearms. 

But in order to get the masses to comply, the power elite need to "motivate" us to allow them to further their agenda.  This means allowing (or creating) another crisis for which they can stand on top of the rubble and tell us that they hear us, and soon the whole world will hear us once again... blah blah blah, wash, rinse, repeat. 

This is why the markets must crash.  This is why there must be more loss of life... most likely in the form of a terrorist attack (Russian/Chinese/ISIS?).  It may be real or it may be a false flag.  It doesn't matter.  They will capitalize on it... and they will profit from it the whole time. 

In the meantime, the wealth gap will continue to grow.  The planet's climate will become more extreme.  Social unrest will grow as a result but "divide and concquer" tactics via the mainstream media will pit us against each other instead of our benevolent rulers.  People will get used to seeing troops in the streets.  There will be no such thing as privacy.  The Bill of Rights will become a distant memory.  The social unrest will be used as an excuse to "crack down" on extremism and justify the expansion of the police state.  Many people who currently benefit from the existing system (politicians, corporate executives, military officers, etc.) will defend the actions of the state because at the end of the day, it's difficult for a person to see the truth when their paycheck depends on them not seeing it. 

They need a market crash to make an example of those who would rise up against them and justify their expansion of power.  These things cannot happen when "everything is awesome". 

We have been marching towards an Orwellian society for some time.  The next crisis will bring us much closer to that end. 

As this next financial crisis unfolds do not forget who the real enemy is. It is not the British people. It's not the poor. It's not minorities. It's not Muslims. It's not Christians. It's not Boomers or Millennials. It's not Southerners or Northerners. It's not homosexuals or transgenders. It's not liberals or conservatives.

The real enemy is the CORRUPT ESTABLISHMENT. It starts with the central bankers and their masters. Next are the "too big to fail" banks and the corrupt politicians who answer to special interests. It is the multi-national corporations who only care about next quarters earnings - regardless of how it is accomplished. It is the corporate controlled mainstream media who perpetuate propaganda telling people what to think and spinning the truth with their constant lies by omission instead of reporting the facts. These are the ones who should be held accountable. 

Soon, humanity will face a choice. The people can wake up and overthrow these sociopaths who care nothing for humanity and only care about greed and power... or we can fall prey to their "divide and conquer" tactics and fight among ourselves while they lead us to extinction.

The more awake you become, the more insane you appear to those who are asleep.  I get that.  Many people will see this as crazy talk.  Just know that I am not your enemy.  I am trying to wake you up. 

The people have always had the power when they stand together and make their collective voices heard as one. All evil needs to succeed is for good people to remain silent. May you have the courage to stand up and make your voice heard.

Besides the ZH (thank you for what you do), here are a few others that I recommend to help you see the truth:

via Youtube:
Rutherford Institute
The Money GPS
Ben Swann's Truth in Media
Mike Maloney (check out his "Hidden Secretes of Money")

via Facebook:
Represent US
March Against Corruption
Progressive Moderate Party
Films For Action
The Anti-Media


In the age of information, ignorance is a choice. 


Osmium's picture

Was it OVER when the Germans bombed Pearl Harbor?

Haus-Targaryen's picture

No, it was over when the Japanese invaded Poland. 

effendi's picture

I thought it was the Russians that invaded Poland?

Haus-Targaryen's picture

No it was most definitely the Japanese.  It was the Russians that won the battle of Midway. 

jcdenton's picture

What Sarah Palin said ..


Yes, I made this ..


It does turn out Assange is a Mossad agent ..


Didn't know that at the time ..

oncemore's picture

€ was killed last Thursday.

DB will go bust with Euro in that moment, when D will announce, that they leave Eurozen, or if they will not obey Washington (e.g. going to China or Russia, generally away from USA.

BandGap's picture

Looks like they got the Soros memo.

If I die I do not drag my family with me because I have debts. When DB dies it will suck trillions down with it as it's unholy soul is bared to the entire financial and political universe.

Going to be epic.

OpTwoMistic's picture

In the ponzi one goes, they all go.

The stock price means nothing, they are all garbage.

SWRichmond's picture

DB is a bit larger than Lehman, isn't is?

jcdenton's picture

It doesn't matter ..


Its DERIVATIVE position -- does ..

LawsofPhysics's picture

You sir, are an optimist.

BandGap's picture

I have kids, need to keep a stiff upper lip.

adanata's picture



mtl4.. true,  however, do you think the ECB and IMF are "nervous"? Drooling is more like it... so the 'sooner the better' may not be such a great idea although DB is toast in any event... and deliberately so. Deutsche has been offloading trillions in fraudulent CDs to the big banks on Wall St. who are delighted to get them. 95% of those CDs were bought on margin; debt that can/will never be repaid... at least not by the debtors. Nope. So why is Wall Street so happy to take it on? Because U.S. "law" says the American taxpayer is on the hook for all this lovely "debt". They buy at huge discounts but get payment in full from the American public/taxpayers/depositors. Will the Sheeple go for this? Will they understand this? Remains to be seen...

gotta love the banks; no stone left unturned /s