Deutche Bank and banking/financial crisis general

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Thanks a very great deal, friend. Keep them coming.

There doesnt seem to be much interest

Not going to crash until people stop talking about it.
When you see no more articles or news about DB, that is when it will crash.

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>ignores my stock general made over an hour ago

mate come on........ well i guess you made one .21 is the stock level right now its scared as fuck

>tradingview.com/chart/?symbol=CHXEUR:DBKD

bump

Fuck that, buddy, when shit hits the fan, we'll be the 'told ya so' people. For those of us who are concerned, this is all a very great benefit.

Thanks again.

Give me the tl;dr

Hm?

telegraph.co.uk/business/2016/09/28/is-deutsche-bank-the-next-lehman-brothers-the-denials-certainly/

What happens to Europe if Deutsche Bank crashes?

Didnt see it. I searched before posting, guess I didnt search the same keywords you used.

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can some one give tl:dr of the situation and how critical it actually is?

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You're a saviour, Ameribro, and you're doing many of us a great service.

I'm not at all that good at this so this is how I understand it.

When this bank fails it will be sending a shockwave across many other banks, sort of like gif related.

I don't know why though, maybe something about the other banks having a stake in this bank, wish someone would explain.

Why has it risen $1 in the past day?

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They sold one of the business they own or something, for about 700,000.

SOON
O
O
N

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Shitposting aside, how serious is this?

It's nothing. They're sitting on $200 bln of assets and can sell them any moment to pay a mere $6-15 bln fee.

in the end we taxpayer will rescue deutsche bank like we always did

It's the largest bank in Europe. Recently, it's been hit with a $14 billion fine by the DOJ, which is, I think, around its market capitalisation. My question here is whether or not they are able to pay in instalments, assuming they'll have to pay such a fine (they'll try to negotiate a lower fine to pay; in order to pay the fine, they'll have to exist, so it'll be in the interest of the entity who receives the fine to have the bank remain in existence.)

There are parallels between this bank and the Lehman Brothers: 27:1 liquidity ratio compared with Lehman's 31:1; Lehman fell at $10 and DK is close to it; and somebody should pull out that Lehman-DK stockmarket graph comparison.

Not to mention the fact that DK has $72 trillion of derivatives exposure, but then I've read on another thread "Total notional derivative exposure is meaningless, since most derivatives are covered by equivalent, opposite contracts.

What you want is the net derivative exposure, which is probably a miniscule fraction of that."

There was another ratio that I caught sight of that was another indication of how it is Lehman Brothers all over again.

So that's my knowledge of the situation exhausted. I'll be immersing myself in these articles by ameribro-saviouranon later today.

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Karma is a beotch. If DB collapses, CS could be first to tip over.

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Their equity can't take that hit, and being forced to sell quality assets to pay this fine would make DB's assets look even more junky.

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So derivatives are a way for a buyer and a seller to agree on a price for a future product, regardless of its price fluctuation, right?

What does this mean between banks?

Hey, it's falling in the wrong direction! Is it undead cat bounce?

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The equivalent of a drought for Lehman Brothers was the crash of the housing circlejerk in the US.

There is no equivalent of a drought in the German economy, which the Deutsche Bank is financing. We're doing well, exporting more than China.

Derivatives are financial products that derives its value from the value or return of an underlying asset or security, so it could be an option, future, forward or swap. The futures contracts themselves are set in stone, but the prices of open interests do fluctuate. For something like a swap could depend on the interest rates at the time, I think.

I'm afraid I don't know very much about the derivatives settled between banks.

I'm no expert. But lets try to guess.
This is how the banks distribute to build their short positions.
Look at the market structure to the left, there are old lows. Price formed a low and is now breaking recent highs. Look at how price has retraced nearly 61.8% from the most recent high to low. These and many others are reasons for people who are not smart money to think to themselves to place their orders around these levels. Some of them are breakout traders and place buy stops to enter long positions, some have been short riding it down and trailing their buy stop loss order, some recently got short and are placing their protective buy stoploss order, etc etc.
So there will be a pool of liquidity in the form of buy stops sitting around this area.
The banks are looking to distribute to those people so they have engineering the price to go up into those resting buy stops so that they can sell it to those buyers and thus build up their net short positions.

Here an article, don't know if it explains much apparently they call it propriety derivatives

forbes.com/sites/stevedenning/2013/01/08/five-years-after-the-financial-meltdown-the-water-is-still-full-of-big-sharks/#50ec6c995474

Thanks a lot, bro. Currently busy, but I should have time in a while later.

Bumpity bump.

news.ycombinator.com/item?id=11081332

for one, my country gets fucked
Before us, Greece and Spain

Beyond that, only Kek can decide

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It will not drop below ten.
The PPTs have are authorised to spend eight digit figures without notice. Nine are available at 24 hours notice.
It will not drop below 10.

investopedia.com/terms/c/counterparty.asp

investopedia.com/terms/c/counterpartyrisk.asp

These two terms might help as well, if I'm getting this right then it means that Deutche Bank has these counterparty agreements with a bunch of other banks all over the world and if Deutche goes down they default on that 75 trillion and all those other banks lose contracts total to 75 trillion?

Damn I wish someone enters knew more about this and was able to explain this in simple terms.

I have no idea what's going on. Is it happening or not?

I think they bought themselves some time selling off an asset yesterday.

That isn't how derivative works. Deusche bank usually have an exposure of 41 Trillion u$s in derivatives but usually does derivatives are traded in nominal numbers and calculated in value what it is said to be notional value.

A quick way to explain it is that you have an asset that will be sold several times over and you have a determinated size of units in that contract for X amount per unit. Meaning that your notional value is that size X price per unit. But if the assets can be resold then you can have the same asset being sold at a different price per unit in a latter date making the notional value of that asset grow.