ECB "Refused To Answer Questions" – “Systemic Threat” Of Deutsche Is “Not ECB Fault”

GoldCore's picture

The 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.

draghi_ECBRalph Orlowski | Reuters
ECB President Mario Draghi refused to answer questions in German parliament

The ECB president brazenly "refused to answer questions" regarding Deutsche Bank during a closed-door meeting in the German parliament. Afterwords in conversation with journalists, he denied that the negative interest rates being imposed by the ECB are partly responsible for Deutsche Bank and the German financial system’s troubles.

However, many analysts rightly assert that zero interest rate policies (ZIRP) and now negative interest rate policies (NIRP) are a factor and partly contributing to the challenges facing banks in much of the western world. Not to mention causing bubbles in many property markets and indeed in stock and bond markets.

Draghi_ECB_FTSource FT

“If a bank represents a systemic threat it cannot be because of low interest rates. It has to be for other reasons,” Mr Draghi asserted to reporters somewhat dogmatically and simplistically. He was contradicted by the head of Germany's BdB banking association, Michael Kemmer, who told Deutschlandfunk radio that the ECB's low interest rate policy was partly responsible for the current problems that Deutsche Bank and Commerzbank are facing.

This morning, Commerzbank, the second-biggest bank in Germany after Deutsche, suspended its dividend and revealed it is slashing more than 9,000 job losses as it too desperately tries to shore up its business in the face of ultra-low interest rates and increasing loan losses.

Anxiety over eurozone banks has risen since the market turmoil following the June UK vote to leave the EU. Until recently, however, concerns have focused on the bloc’s periphery, particularly banks in Italy.

Now the banking crisis is moving to the core. This poses the real risk of financial contagion in the European monetary system and the global banking system.

See “Euro Might Start To Unravel” If Collapse Of Deutsche Bank

Gold and Silver Bullion - News and Commentary

Gold extends losses as dollar, stocks rise (Reuters)

Gold prices mostly steady in Asia as rates, politics and OPEC mix (Investing)

WTO cuts 2016 world trade growth forecast to 1.7 percent, cites wake-up call (Reuters)

City-by-city look as house price gains slow (MarketWatch)

IMF sounds alarm bells over trade slowdown and low inflation (Telegraph)


What the return of politics means for your money (MoneyWeek)

Dollar Going the Way of the Denarius (InternationalMan)

Transition of Price Discovery in the Global Gold and Silver Market (SafeHaven)

Will Deutsche Bank's Collapse Be Worse Than Lehman Brothers? (GoldEagle)

Deutsche Bank To Blow Up and Create Euro "Chaos"? (DollarCollapse)

Gold Prices (LBMA AM)

29 Sep: USD 1,320.85, GBP 1,016.92 & EUR 1,177.14 per ounce
28 Sep: USD 1,324.80, GBP 1,020.10 & EUR 1,181.06 per ounce
27 Sep: USD 1,335.85, GBP 1,031.01 & EUR 1,187.84 per ounce
26 Sep: USD 1,336.30, GBP 1,033.23 & EUR 1,188.91 per ounce
23 Sep: USD 1,335.90, GBP 1,027.17 & EUR 1,192.16 per ounce
22 Sep: USD 1,332.45, GBP 1,019.59 & EUR 1,186.68 per ounce
21 Sep: USD 1,319.60, GBP 1,015.96 & EUR 1,183.81 per ounce

Silver Prices (LBMA)

29 Sep: USD 19.01, GBP 14.61 & EUR 16.95 per ounce
28 Sep: USD 19.12, GBP 14.69 & EUR 17.05 per ounce
27 Sep: USD 19.42, GBP 14.99 & EUR 17.26 per ounce
26 Sep: USD 19.44, GBP 15.04 & EUR 17.29 per ounce
23 Sep: USD 19.82, GBP 15.28 & EUR 17.66 per ounce
22 Sep: USD 19.88, GBP 15.22 & EUR 17.69 per ounce
21 Sep: USD 19.43, GBP 14.95 & EUR 17.43 per ounce

Recent Market Updates

- Do You Really Own Your Gold?
- “Gold Will Likely Soar To A Record Within Five Years”
- Savings Guarantee? U.N. Warns Next Financial Crisis Imminent
- Gold Up 1.5%, Silver Surges 3% – Yellen Stays Ultra Loose At 0.25%
- Trump and Clinton Are “Positive For Gold” – $1,900/oz by End of Year
- Gold Bugs Rejoice – Central Banks Think You’re On To Something
- ‘Hard’ Brexit Looms For Ireland
- EU Bail In Rules Ignored By Italy – Mother Of All Systemic Threats and World War?
- Buy Gold – Bonds Are ‘Biggest Bubble In World’ – Billionaire Singer Warns
- Silver Bullion Market – “Most Bullish Story Ever Told?”
- “Sorry, You Can’t Have Your Gold Bullion”
- Global Stocks, Bonds Fall Sharply – Gold Consolidates After Two Weeks Of Gains
- Gold, Silver, Blockchain and Fintech – Solutions To Negative Rates, Bail-ins, Cash Confiscations and Cashless Society

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
GreatUncle's picture

I hope DB folds, had enough of my politicians lieing over BREXIT and article 50.

<< EU burn

<< EU snowflakes and bailouts.

If there is no EU then there is nothing to fucking support ... get it? Even better if Putin drops a fucking nuke on Brussels then it truly is dead.

Now if the EU burns, its good for Trump, proves the fake Clinton ideology is a load of bollocks also and we get some normality back.

Gonna be tough though ... snowflakes can go to their safe spaces okay to manage their micro aggression issues.

Us deplorables, or me anyway, can party hard.

medium giraffe's picture

let her rip. we'll sort out fault later. with pitchforks.

SmittyinLA's picture

DB: Thank god they didnt ask about ABENGOA
"Abengoa expects to win the support of its creditors for a restructuring plan by Sept. 30"


So how bad is it?

Bad, ABENGOA is the corporate arm of Hillary's carbon racketeering scheme, US taxpayers the backers (we share losses she shares profits)

DirtySanchez's picture



Sooner, rather than later, this entire shit show comes to a screeching halt. The world's central bankers are inevitably running out of ideas and time to hold off what is coming next.


The end game is to have a select few, dominate and subvert the many; throughout the world.

We are well on our way.

Putin and a few others just haven't signed off as yet.

Phillyguy's picture

Rest assured, the German government along with the ECB (or should we say EU taxpayers?) and possibly the US FED, will be bailing out Deutsche Bank. DB is the center of the banking universe, because of their large derivative exposure and ties to every major bank in the world. When DB blows, it will bring down the world financial system. The ECB has no choice. See:


The Management's picture



Caleb Abell's picture

It makes good sense to rescue the TBTF banks.  If we allowed them to go under, then the smaller banks that survived would feel obligated to avoid gambling on things like derivatives, and follow sensible banking practices.  We don't need any of that.

I'm sure that when the german taxpayers are dunned for the mney to save the banks, the banks will have learned their lesson and will not make the same mistakes again.

OSI-Brat's picture

With who's moeny? So when City Bank wants help with it's $55 Trillion in derivatives debt or it will fail.. you will write a check to help out?  The Banker Cartel has a plan. 

Citigroup Has More Derivatives than 4,701 U.S. Banks Combined; After Blowing Itself Up With Derivatives in 2008


GunnerySgtHartman's picture

That's a clusterf*ck on standby, waiting to happen.

Latitude25's picture

Yeah sure.  That's why we had Glass-Steagal for 66 years.  As soon as it was repealed the big banks went right back to the casino gambling.  If Greenspasm says you can trust banks to self regulate it must be true right?

JailBanksters's picture

Well somebody has to pay for their failures, and shareholders of this Bank or other Banks are certainly not going to pay for it.

So one way or another, the people that didn't benefit from the profits, the people that had nothing to do with the failures will be paying for it.



Coldfire's picture

Draghi looks like a fucking corpse.

Goldbugger's picture

He is not sleeping good at night, he nows the whole thing in on the verge of collapse.

thefinn's picture

So basically if interest rates are 0% then banks can only put their home loans to 5%.

But if interest rates are 5% then they can put them to 15% thus saving the bank?


So they hide their high markups far more easily when there's higher interest rates, sounds like.


Bemused Observer's picture

“If a bank represents a systemic threat it cannot be because of low interest rates. It has to be for other reasons,”

Riiiiight, you fucking brain-dead moron. Of COURSE it must be for 'other reasons'...because YOU are 100% correct. You're ALWAYS 100% correct, even when you're completely wrong.

AND you refuse to answer questions about it...because you're WRONG and you KNOW it.

The problem isn't fiscal policy, it is the folks like YOU. All the 'fiscal policy' on the planet won't make your bad ideas any better.

Draghi, you are a truly dumb shit. Common sense will never penetrate that thick Italian skull of yours. But keep up the good work, and maybe something else will.

GunnerySgtHartman's picture

"Pay no attention to that man behind the curtain!" - Mario Draghi

Goldbugger's picture

Did they get Hilary's broomstick?