About That Deutsche "Settlement" Rumor: Cryan Hasn't Even Started Negotiations With The DOJ

Tyler Durden's picture

Friday's market session was about one thing: will Deutsche Bank stock close the week ahead of a three day holiday at a record low. It did not because, as we reported, the AFP announced that based on "sources" (most likely from Twitter), the DOJ was willing to reduce the $14 billion settlement that sent DB stock on a rollercoaster ride over the past two weeks, to just under $6 billion. The news unleashed a massive short squeeze relief rally, which sent DB stock soaring on Friday, pushing the entire market up 1%.

And while repeated attempts by the likes of Reuters to get additional information from either the DOJ, the German government or Deutsche Bank itself, have proven fruitless, overnight Frankfurter Allegemeine Zeitung reported that Deutsche Bank executives are heading to the United States in the coming days to negotiate the $14 billion settlement over a fine the infamous $14 billion for misselling RMBS.

The FAZ did not cite any sources for its report. Deutsche Bank did not immediately respond to a request for comment on Chief Executive John Cryan's travel plans.

In other words, not only was the $5.6 billion "agreed upon" number, as "reported" by Twitter and then AFP, bogus, but the actual negotiations have not yet even begun.

It also means that the catalyst for Friday's ramp was, as we suspected, nothing but the latest attempt at media manipulation meant to push DB stock higher and prevent a concerned German population from pulling its cash out of the bank, of which DB has well over €300 billion in retail deposits.

With Germany closed on Monday and only the far more illiquid US DB stock trading on Monday, we look forward to the market's reaction to the realization that what it soared on what was nothing more than a media stunt, especially in the aftermath of Saturday's announcement that Italy is the latest sovereign to take Deutsche Bank to task for its allegedly illegal manipulation and misrepresentation of Monte Paschi's books.

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Ban KKiller's picture

So..someone, somewhere is sucking some serious dick. 

My juvenile comment for the day. Ha-ha-ha.

remain calm's picture

So the media and its surrogates concocketed a story so they create a narrative that would benefit their interest. No WAY. :)

Fiji's picture

DB is fucked... It's more Enron than Lehman bros imho.

Friday could be remembered as a dead cat bounce. 

RAT005's picture

Maybe DB started the Twitter Rumor to demonstrate what a $5billion settlement will do for world markets.  Then they go to negotiate.  The bar has been set low.  Anything higher will be disappointing.  Maybe the DOJ and FED just got their A$$ handed to them on the cheap.

JackT's picture

What does it even matter? 14 or 5 or 3 billion. The bank is done. We all know what it leads to.

RAT005's picture

I'm just making up numbers, but it's just worthless fiat so exact values don't matter much.  $5B, other nations bailout DB to protect their own counterparty banks.  $20B DB does a customer bail in and EU banks across the continent are at risk of a retail bank run and surge into Phys.  The bankrupt govs. of the world can't afford the bank run nor the rotation into phys.  So they lower the fine to $5B as maybe DB demonstrated is acceptable and carry on.....

DeadFred's picture

Watch what DOJ does with DB. It will tell you if the end of the world is here or not. There is no way that the people who were afraid to charge bankers because of the systemic risk it posed are willing to push a bank with trillions in derivatives over the brink... unless they've been told that this is the time for the end game to begin. Maybe it's a game of chicken and they're working to reduce the Apple fine but if no one blinks there's a big crash coming and EVERYONE knows it.

RAT005's picture

Agree, and DB knows it as well or maybe better.  So DB fires a shot across the bow that a fine higher than $5B leeds to what you described.  They open negoitiations with $5B or less or expectations will not be met and the $trillion Derivative Cart goes over the cliff.

zvzzt's picture

Absolutely agree. moreover, good old germany as a scapegoat for 'all the worlds financial problems' after the collapse... after all, 'they' did it again. three strikes out!


Mustafa Kemal's picture

"So the media and its surrogates concocketed a story so they create a narrative that would benefit their interest. No WAY. :)"


So the stock market heard an unsubstantiated twitter and considering it the only actionable piece of information moved on it as if it meant something. No WAY

adanata's picture


Ex Deutsche Bank executives among 13 charged in Paschi probe. There will be a trial... at least that's a step in the right direction.

Let's see if anyone is convicted.

SomethingSomethingDarkSide's picture

A juvenile comment a day keeps the Xanax prescriptions away

PlayMoney's picture

DB probably put the rumor out to make stocks, including theirs, go up. Now they get the real settlement and the bots will buy the "market" up again. 2 jawbones for the price of 1...brilliant. I imagine the real settlement will be less, maybe 2 or 3 billion. Yeller already coordinated with Lynch not to hit them too hard so it doesn't tank them. Would create more work for Yeller having to print up trillions in "off book swaps" to fix what the DOJ does.

Captain Chlamydia's picture

My comment for the Day would be :

Quick, Germany, get your money out of DB! Mach schnell! 

IridiumRebel's picture

Trade the rumor. They got 5 weeks to hold it together then they can let it collapse.

remain calm's picture

AGREE. Win or lose they will let it go as the weight to manipulate has become to great.

Bay of Pigs's picture

Look at the volume of shares traded the last two sessions, 50M+ and 67M+. Ten times normal.

Algos Gone Wild.

DogeCoin's picture

WOW. I am so shocked.

max2205's picture


Kabissa's picture

Last friday DB's stock buyers thought it had turned into a (led)zeppelin along the lines that "a new day will dawn for those who stand long", clueless of HinDenBurg's fate...

Paul Morphy's picture

I said it last Friday.

I said that it was a measure of how synthetic things are that credence is given to a rumour issued on Twitter that determines the fate of DB's share price.

Of course a Frog newsagency took the Twitter dribble to be gospel as well.

813kml's picture

Welcome to the Idiocracy, where a BBW beauty queen might decide next US prez.

Sages wife's picture

The logically critical have left the building.

CorporateCongress's picture

At this point, what difference does it make?

CorporateCongress's picture

Nothing like a nice friday squeeze

CorporateCongress's picture

That's what you get playing in illiquid markets. The more stocks taken out of the market by the fucking central banks, the worse it gets. Fuck the momo traders by the way.

Kaiser Sousa's picture

"well there u have it…once again all it took was the constant float of a fucking soon to be refuted rumor to produce the always reliable “HAPPY ENDING FRIDAY”… how many times have I pointed out the following obvious, blatant, manipulative Fed, ESF, & Wall St. banker fuck bullshit…"

- Kaiser Sousa, Sept.30, 2016 -

PersonalResponsibility's picture

I love your after market rants. Awesome. But how often have you traded on it and did you profit?

Kaiser Sousa's picture

im not a trader...

im a saver...

more importantly -

"For what shall it profit a man, if he shall gain the whole world, and lose his own soul?"

Mark 8:36


PlayMoney's picture

2 layups this year. Buy the NFP report. Half good/ half bad and the market has shot up every single report.


Obvious one buy ANYTHING before Yeller speaks on rates. I do the S & P right before she speaks and sell a half hour or so after. Nothing big but a bit of milk money. I don't trade a lot. Sometimes if the market is down i buy the S & P about 30 minutes before the close and that percentage is very high. Although i have noticed 4 or 5 times the last several weeks it hasn't......could this be a sign or is the Fed trading desk just taking off early?

Piranha's picture

whats wrong with happy endings?

Kabissa's picture

Not being part of it !

JustPrintMoreDuh's picture

Since when did things such as facts matter to the "markets"? ... Up Up & Away! 

RiverRoad's picture

We have markets now that are moved solely on twitter, rumor, and Fed jaw-boning.  Don't be hanging your hat on that.

khakuda's picture

End of the quarter mark up.

Erek's picture

If you can't trust bankers and the MSM who can you trust? The government?



Keep stackin'!

ANestIOS's picture

the "market" professionals'(!) operating assumption is that they'll get a deal @around $4 billion with the rational that they can't afford a higher payment without raising capital and that it will dilute the share value - don't ask me where this comes from, heard it from 3-4 individuals, I'm just writting it so I can comment the following:  what nonsense!!!

nmewn's picture

Cry-ah-in over you. Cryan over you...lol.

Roy Orbison ;-)

umdesch4's picture

Psycho, somatic addict, insane.
Come play my game.
Inhale, inhale, you're the victim.

- Prodigy

RozKo's picture

I guess satanists couldn't let the crash happen just yet, just have to wait for the war to start and then it will be Ok...

Tremel Jackson's picture

"comfortable cushion of liquidity" = retail deposits.
is it any wonder that bogus rumor got floated right after cryan's freudian slip?

cognitive dissident's picture

knew it, DB should pay the price monday since they made no effort to deny the fraudulent claims made via Twatter... but will they?

all this circus is missing is a big top and juggling bears on unicycles...

good fucking grief

Chuck DeBongo's picture

What was that quote again?

"When things get serious, you have to lie."

Someone clearly benefited from that "report", the question is who? I have a hypothesis about the difference between 2008's recession and the next one.

2008 caught TPTB out. "No-one" (note the inverted commas) saw it coming so no-one was prepared for it. Now, people are more aware and because of that TPTB can attack it quicker before it spins out of control. It's a bit like spinning plates. 2016 is seeing one plates slowing down and running over and giving it more momentum whereas, 2008 was all your plates falling at the same time while your back was turned. This is why, I believe, that the new recession is taking so long to happen; the TPTB are actively trying to stop it (or, at the very least, slow it down). 

I think that not only DB know's they are in trouble, but TPTB know it, too. They're trying to play for time and throwing everything they have at it. Problem is, it's going to cost more to fool the people again for another 7 years. Not only in money, but in politcal currency, too. Hiow many favours will they have to pull in or give in order to cover over a bigger problem?

Tuesday will be interesting. How will the market react to being duped?

Also, what's this twaddle about DB "negotiating" their fine down? When did criminal punishments become open to haggling? I'm going to try this if I'm ever caught by the police.


"Sorry, officer! I know the punishment is 6 months in prison but I'm not going to do that. Can I go for 2 months, with parole after 3 weeks....?"



RiverRoad's picture

Haggling/extortion.  What difference does it make?  I'll huff and I'll puff and I'll blow your house down....or else.

Been one crazy slow-mo Crash.

Eahudimac's picture

How will the market react to being duped?

Another 15% rally in the stock price, my guess.