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This was in June
Here we are today
However they seem to be getting a reduced fine from the US authorities.
In the end there is no state aid from Germany, but from the US.
Keeps us all going for a little while longer.
Thank you Obama.
The IMF compared possible threats to financial stability stemming from globally systemically important banks, known as "G-SIBs", in a review of Germany's banking and insurance sector.
"Among the G-SIBs, Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC (HSBA.L) and Credit Suisse (CSGN.S)," the fund said.
Global regulators have tried to make such banks more robust following the financial crisis to limit the impact of a bank collapse such as the implosion of U.S. firm Lehman Brothers.
"The relative importance of Deutsche Bank underscores the importance of risk management, intense supervision of G-SIBs and the close monitoring of their cross-border exposures," the IMF said, adding it was also important to quickly put in place measures for winding down troubled banks.
Germany's largest lender declined to comment on the report.
"Among the G-SIBs, Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC (HSBA.L) and Credit Suisse (CSGN.S)," the fund said.
Global regulators have tried to make such banks more robust following the financial crisis to limit the impact of a bank collapse such as the implosion of U.S. firm Lehman Brothers.
"The relative importance of Deutsche Bank underscores the importance of risk management, intense supervision of G-SIBs and the close monitoring of their cross-border exposures," the IMF said, adding it was also important to quickly put in place measures for winding down troubled banks.
Germany's largest lender declined to comment on the report.
Here we are today
Less than a decade after the financial crisis, Deutsche Bank is in trouble again, with investors speculating about whether the German government will have to rescue one of the world's largest financial institutions. The sad thing is how easily this predicament could have been avoided.
This time around, Deutsche Bank isn't dealing with an unforeseen market meltdown or sovereign-debt crisis. Rather, the proximate cause of distress is the U.S. Justice Department's threat to fine the firm $14 billion for decade-old transgressions involving U.S. mortgage-backed securities -- more than double what the bank has set aside to cover such legal costs. Concerns about capital adequacy have sent the stock price to record lows, and the German government says it won't provide a financial safety net.
This time around, Deutsche Bank isn't dealing with an unforeseen market meltdown or sovereign-debt crisis. Rather, the proximate cause of distress is the U.S. Justice Department's threat to fine the firm $14 billion for decade-old transgressions involving U.S. mortgage-backed securities -- more than double what the bank has set aside to cover such legal costs. Concerns about capital adequacy have sent the stock price to record lows, and the German government says it won't provide a financial safety net.
However they seem to be getting a reduced fine from the US authorities.
Shares in Deutsche Bank recovered somewhat on Friday from a record low early in the day after a report that it was close to a cut-price settlement of $5.4 billion instead of $14 billion.
In the end there is no state aid from Germany, but from the US.
Keeps us all going for a little while longer.
Thank you Obama.
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