After Credit Suisse’s demise, attention turns to Deutsche Bank

really stay confined to America and Switzerland? On March 24th, as European bank stocks slumped, the disbelief faded. By the end of the day Christine Lagarde, president of the European Central Bank, had commented that Europe’s banks were safe and liquid enough to withstand market scrutiny.

How bad do things look for Deutsche Bank? Start with the immediate comparison between it and Credit Suisse. The 300km separating Frankfurt from Zurich is not the only thing that sets the two institutions apart. The Swiss bank was unprofitable and faced enormous legal strife. But what really made Credit Suisse a prime candidate for a lightning-fast bank run was that nearly all its deposits were uninsured.

There are, however, other threats. These include rising interest rates, which were what brought down Silicon Valley Bank . Rate rises are good for banks in the short run, since income from interest increases. Indeed, Europe’s banks have posted bumper profits. Deutsche Bank’s net profits of €5.7bn in 2022 were up 65% from the year before.

It’s all being done on purpose. Just remember, I told you so.

Meme time blob:

DB will fail soon

This is not true, it’s the same position, maybe worse

Another bank failure in the line DeutscheBank

Ja und?

Very Bad

The real question is how many other Banks are in the same boat as First Republic and their depositors don’t know about it.

They cannot rob us with impunity indefinitely.

R.I.P. Deutsche Bank.

Sure

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