Deutsche Bank lost 15 Billion Euros over The past 5 Years , As Germany is Collapsing to Recession !

The Bank crash is getting closer. Deutsche Bank is deep in the red. After decades of money laundering for Russian and American oligarchs, Deutsche Bank knows that their goose is cooked and that they had better start circling the wagons and getting rid of the evidence. Shares are in freefall. Record losses, more reserves for litigation, austerity measures waiting to be implemented - no wonder Germany’s biggest bank is in crisis. The negative headlines at Deutsche Bank seem to never stop. After the questionable appointment of Sigmar Gabriel as a member of the Supervisory Board, the figures for 2019 have now reached a new dimension. Deutsch bank, now in its 150th year, is considered one of the global financial system’s most important banks but has been hit by a string of misconduct scandals. Deutsche Bank lost 15 billion euros over the past five years, exceeding 9 billion euros in profit earned at the start of the decade. Deutsche Bank plunged to a bigger than expected loss of 5.7 billion euros ($6.3 billion) last year, This is the fifth year in a row. As the cost of its latest turnaround attempt hit earnings. The latest attempt, under CEO Christian Sewing, is a 7.4-billion euro drive to cut 18,000 jobs, shrink its investment bank and focus on corporate as well as private banking. Deutsche Bank also reported a loss of 832 million euros between July and September, after the red of over 3 billion in the second quarter. The restructuring plans are not taking off. There's nothing good on the horizon for Deutsche Bank, as it is still one of the largest derivative players in the world. forty-nine trillion dollars; trillion not million not billion. Deutsche Bank, even after cutting thousands of jobs; It still reported bigger than the expected loss for 2019 of 5.7 billion euros. As costs related to its restructuring plan. This is a significant loss. It's one of the biggest annual losses in Deutsche Bank's history. Deutsche Bank is also cutting bonuses. But despite the loss of billions, the bank board will receive bonuses in the millions for 2019. However, the pot is likely to be around half the size of the previous year at an estimated 13 million euros. The top managers waive the so-called individual performance-based remuneration. It is important to point out that, The President of Deutsche Bank is the Chairman of the Board for The Bank of International Settlements (BIS). The BIS is the Mother of all Central Banks. Welcome to The Atlantis Report. Recently Deutsche Bank has announced it will cut 18,000 jobs in an effort to radically restructure the financial institution. Deutsche has said the move will cost 7.4 billion euros, as the company leaves global investment banking behind and slashes some operations in fixed income. The bulk of job cuts are expected to be in Europe and the United States. The Banking crisis is the first step towards a major change . Deutsche bank is not the last bank to be prepared some major banks will soon collapse. The German miracle, which for months had been proposed to us as a model to follow and imitate, is now a distant memory, reduced to a pile of rubble from the events that have happened in recent months. The tariff war has unmasked the Achilles heel of the locomotive of Europe, the mechanism that thanks to the single currency have allowed Berlin to have the best accounts in the Eurozone: accumulating large savings surpluses without making investments. In other words, the stagnant effect brought Germany back to earth: in the summer the data on the business confidence index (Ifo) photographed a -6% recession in the GDP, the auto sector - that is, the main industry of the country is in crisis. The industrial production and manufacturing are both falling. It is clear that the German model based on exports and austerity is coming to an end. The king is now naked. Public opinion expects Germany to undergo a predictable self-criticism session but Berlin does not intend to admit its mistakes. In all of this, the German newspaper Die Welt unexpectedly attacked Deutsche Bank - within which, a feud between strong members and the president is underway - for its accounts and the consequent plan renovation. In the period between July and September, the largest German bank lost 942 million euros compared to a net profit of 130 million for the same period of the previous year. It did not end there: in the third quarter, revenues fell by 15%, reaching the 5.3 billion mark. The main reason for such a drop lies in the institution's decision to withdraw from equity trading, yet the nopn explanation is convincing given that there is also a -13% drop in fixed income. This is an internal earthquake. The heads of the bank try to save the salvable. CEO Christian Sewing noted the pre-tax profit of 353 million, in addition to the good state of the bank's main activities, the Cet1 capital index stable at 13.4% and a growth in managed savings. The markets are of a completely different opinion, so much so that many analysts recommend selling the Deutsche Bank stock to investors. Even Bankhaus Lampe, Die Welt always points out, or one of the most important existing business banks would have completed the analysis coverage of the Deutsche Bank stock. The institute's decision was expressed to the Frankfurter Allgemeine Sonntagszeitung newspaper by the deputy CEO, Karl von Rohr: the bank will switch to negative rates for larger accounts. In the meantime, around 1000 employees said goodbye to Deutsche Bank to join BNP Paribas. In short, everyone runs away from DeutscheBank. In this regard, the German press hypothesizes an internal political clash. The feeling is that in order to save itself, the Deutsche Bank may soon change its paradigm, abandoning the American model based on derivatives and stock trading to concentrate on financing for German companies. It remains to be seen whether such a step will be sufficient to avoid the final meltdown. Between accumulating losses, a restructuring that does not take off missed targets and employee cleavers, Deutsche Bank, but also Commerzbank stocks continue their descent. A Commerzbank stock - of which the German state owns 15% - purchased at 26 euros per share between 2008 and 2009 is now worth 5 euros, 7% less than just two months ago. A Deutsche Bank stock trades at 6.9 euros while a year ago it was worth about 20% more. Before the summer, the hypothesis of a combination of the two groups had given oxygen back to the stocks. Then, once the awareness that the merger would cause more harm than well made its way, the project was shelved and the shares started to fall again. The latest news is not comforting. Commerzbank announced that it will not meet its 2019 targets, despite better-than-expected third-quarter accounts. Both German banks are confronted with an objectively very difficult market. Negative rates affect the profitability of all European banks that generate part of their profits thanks to the difference between the rates charged to customers and those paid to depositors. The lower the rates, the narrower this gap. When rates end up even below zero, the mechanism engulfs. In Germany, this phenomenon is particularly accentuated, in addition, on the domestic market both institutions face fierce competition from the "Sparkassen", which are owned by local authorities. Similar to our savings banks, these local banks have less pressing partner remuneration targets and can, therefore, afford particularly aggressive conditions for loans to customers. Deutsche Bank is engaged in a complex transition that basically configures a return to the past: less risk from investment activities and more income from traditional banking activities. Unfortunately, however, in the light of the new monetary conditions, this past is crumbling. The bank has not yet completely disposed of the hangover of the early 2000s when it invested heavily in the US and in financial products linked to real estate mortgages. Deutsche Bank still has “Level 3” financial products in the balance sheet for a hypothetical value of 24 billion euros. These are assets to which it is almost impossible to attribute a real value since there is no longer a reference market. In other words, if the bank manages to sell them, the amount collected could be much lower. A bad bank has been created to assist the parent company in this toxic asset disposal work. But it's a bit like putting dust under the carpet, the losses are less visible but there are and drain resources. The unscrupulous activity in the US has also left an infinite trail of fines of tens of billions paid by the US supervisory authorities. In turn, Commerzbank tries to downsize and reinvent itself. Cuts on cuts, for now, and focus on loans to companies, medium-small species. Not a great idea in this moment of almost the German recession with a consequent foreseeable increase in insolvent customers. In the future, the choice could prove more fruitful. Both banks have started to charge negative rates on the deposits of large customers, be they companies or in the case of individuals with large assets. Moved by uncertain outcomes although probably inevitable. As if that were not enough, like all the big European banks, the two German Banks are also grappling with the capital strengthening requested by the EU authorities. Basically, banks are asked to have more money available to deal with any losses. It must be said that Frankfurt did not miss helpers in various forms, starting with a 2 billion discount granted to Deutsche Bank on capital requirements. In addition, the two German banks are among those that benefit most from the tiering recently introduced by the ECB, that is to say, a system that avoids the application of negative rates on part of the reserves that European banks deposit with the central bank. The markets understandably continue to penalize the securities of the two German Banks, with negative news triggered waves of sales and apocalyptic readings of the situation. "The situation in the German banking sector is far from thriving: the two main banks are in crisis. Deutsche Bank and Commerzbank. Deutsche Bank has lost 90% of its value since 2007, while Commerz has lost 98% of its value. The rest of the thousands of small banks, including public, private and cooperative, are in great difficulty due to negative rates. Precisely this last element has further complicated the situation in the sector: small banks have transmitted negative rates on payments to commercial customers, but they are unable to transmit them to private ones because it is contrary to its traditions and the understanding of customers. In contrast, banks in Switzerland have been much stricter and have had no problems passing on negative interests to customers. The search for a return at any cost has also pushed lenders to invest in risky assets. Among these, those related to the real estate sector which has not had a significant post-crisis drop, as happened in the German one, but is in an overvalued situation valued from 15% to 30%. Therefore, to make profits, the banks have exposed themselves strongly to mortgages which, in the event of a market crisis, would become of the doubtful due date. The German credit sector is also difficult to reform due to its extreme fragmentation and the presence of the public sector. The EU is doomed. It was from the start. Now Angela Merkel can step down, she has achieved her goal of destroying Europe. President Trump has given several ultimatums to Europe about the cost of defending Europe and the substantial trade imbalance. Failure to comply will have dire consequences. The US economy is only 16 percent dependent on foreign trade. It has an 800 billion dollar a year trade deficit. One way or another that must go to zero. Europe will buy more from the US or sell less to it but its trade surplus will end. This was The Atlantis Report. Please Like. Share. And Subscribe. Thank You.
















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