Tuesday, October 04, 2016

Systemic Risk: Deutsche Bank
Mish Shedlock* highlights the risks posed by Deutsche Bank in the global financial system .. 
Systemic Risk: $100 billion (see explanation and chart below)
Notional derivatives: €42 trillion, an amount about the size of the German economy
Market value of Derivatives: €18 billion
Equity: €67 billion
Assets: €1.6 trillion
Leverage Ratio: 25-1
Shedlock references this quote:  "As of now, Deutsche Bank is ranked at the top among European banks in terms of risk, requiring close to €100 billion in fresh cash to ensure that it could survive a sustained sell-off in the markets .. 'I did not know if I should laugh or cry that the bank that made speculation a business model is now saying it is a victim of speculators . There is just a lot of risk for Deutsche Bank right now .. We have been worried about European banks for quite a while.'"
LINK HERE to the commentary

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