In Awe at How Fast Deutsche Bank is Coming Unglued
Im in Awe at How Fast Deutsche Bank is Coming Unglued
by Wolf Richter July 6, 2016
[font color="blue"]Bond-buyback miracle-nonsense flops. Shares, CoCo bonds plunge.[/font]
Deutsche Bank the most important net contributor to systemic risks, as the IMF put it last week after a lag of several years is having a rough time. Shares dropped 4.2% today to close at a new three-decade low of 11.63, down 48% since July 31 last year, lower even than the low during the doom-and-gloom days of the euro debt crisis and the Global Financial Crisis.
Its not the only European bank in trouble. Credit Suisse dropped 1.7% today to CHF 9.92, another multi-decade low, down 63% since July 31. Other European banks are getting mauled too. The European Stoxx 600 banking index dropped 3% today to 117.69, approaching the Financial Crisis low of March 2009.
If July 31, 2015, keeps showing up, its because this was the propitious day when Draghis harebrained experiment with negative interest rates and massive QE came unglued, when European stocks, and particularly European bank stocks began to crash.
Deutsche Bank is so shaky that German Finance Minister Wolfgang Schäuble found it necessary to stick his neck out and explain to Bloomberg in February that he has no concerns about Deutsche Bank. Finance ministers dont say this sort of thing about healthy banks. ..................(more)
http://wolfstreet.com/2016/07/06/deutsche-bank-crisis-coco-bonds-shares-new-low-bond-buybacks/