When asked if Deutsche Bank is indeed the most important net contributor to systemic risks, he replied:
“No, not at all. Only one IMF report has recently muddled up the situation: We are not dangerous. We are very relevant. Deutsche Bank is interwoven with the entire financial sector. We are one of the largest universal banks in the world. But to make it clear: Our house is stable. The balance sheet is healthy.”
When further asked if he can make this claim in good conscience, he said:
“Absolutely. Look at how we have capitalized the bank since the Financial Crisis. We have taken €115 billion in risks off the balance sheet and have €220 billion of liquidity. Concern for us is unfounded.”
Two months later it turned out that concern for us was, in fact, "founded."
Amusingly, when Wolf Richter pointed out Lewis' comments, he noted that "wisely, Deutsche Bank’s elephantine exposure to derivatives didn’t even come up. It’s better to silence the topic to death than to cause a panic with it."
Now, just over two months later, the topic has come up, and this time Stuart Lewis is scrambling to preempt concerns about the dozens of trillions in derivatives, using the same exact rhetoric: please ignore the elephant in the room; Deutsche Bank is fine.
But the biggest irony from Lewis' August appeal to investors was the following: “The good news is: the taxpayer does not have to step in; according to the new regulations for banks, bondholders will get hit first.” If anything, events over the past two weeks confirmed that this will not happen.
Still, perhaps an even more important story ahead of Monday's open is not Deutsche Bank's latest attempt to ease investor concerns about its balance sheet and trillions in derivatives, but Friday's report that global banking regulators are sticking to their guns on capital standards in the face of intense European pressure to soften planned rule-changes.
As Bloomberg reported on Friday, the Basel Committee on Banking Supervision will wrap up work on the post-crisis capital framework, known as Basel III, on schedule by the end of the year, William Coen, the regulator’s secretary general, said on Friday. Key elements criticized by European Union policy makers will be retained, according to the text of Coen’s remarks in Washington.
One flashpoint is a proposed new capital floor that caps the benefit banks can gain by measuring asset risk using their own models compared with a formula set by regulators. Coen said “discussions are still under way” on the floor, though Valdis Dombrovskis, the EU’s financial-services chief, called last month for it to be scrapped. deutschebank alone could absolutely destroy the world economy a couple of times over
i think stocking up on the three most precious metals would be a good idea, and concentrating on the cheapest of the three would probably serve you well, cause with a small amount of lead you can easily get a large amount of gold.
When asked if Deutsche Bank is indeed the most important net contributor to systemic risks, he replied:
“No, not at all. Only one IMF report has recently muddled up the situation: We are not dangerous. We are very relevant. Deutsche Bank is interwoven with the entire financial sector. We are one of the largest universal banks in the world. But to make it clear: Our house is stable. The balance sheet is healthy.”
When further asked if he can make this claim in good conscience, he said:
“Absolutely. Look at how we have capitalized the bank since the Financial Crisis. We have taken €115 billion in risks off the balance sheet and have €220 billion of liquidity. Concern for us is unfounded.”
Two months later it turned out that concern for us was, in fact, "founded."
Amusingly, when Wolf Richter pointed out Lewis' comments, he noted that "wisely, Deutsche Bank’s elephantine exposure to derivatives didn’t even come up. It’s better to silence the topic to death than to cause a panic with it."
Now, just over two months later, the topic has come up, and this time Stuart Lewis is scrambling to preempt concerns about the dozens of trillions in derivatives, using the same exact rhetoric: please ignore the elephant in the room; Deutsche Bank is fine.
But the biggest irony from Lewis' August appeal to investors was the following: “The good news is: the taxpayer does not have to step in; according to the new regulations for banks, bondholders will get hit first.” If anything, events over the past two weeks confirmed that this will not happen.
Still, perhaps an even more important story ahead of Monday's open is not Deutsche Bank's latest attempt to ease investor concerns about its balance sheet and trillions in derivatives, but Friday's report that global banking regulators are sticking to their guns on capital standards in the face of intense European pressure to soften planned rule-changes.
As Bloomberg reported on Friday, the Basel Committee on Banking Supervision will wrap up work on the post-crisis capital framework, known as Basel III, on schedule by the end of the year, William Coen, the regulator’s secretary general, said on Friday. Key elements criticized by European Union policy makers will be retained, according to the text of Coen’s remarks in Washington.
One flashpoint is a proposed new capital floor that caps the benefit banks can gain by measuring asset risk using their own models compared with a formula set by regulators. Coen said “discussions are still under way” on the floor, though Valdis Dombrovskis, the EU’s financial-services chief, called last month for it to be scrapped. deutschebank alone could absolutely destroy the world economy a couple of times over
i think stocking up on the three most precious metals would be a good idea, and concentrating on the cheapest of the three would probably serve you well, cause with a small amount of lead you can easily get a large amount of gold.