Is Deutsche Bank AG (NYSE:DB) the next Lehman? Hillary Hopes Not

Published on Oct 4, 2016

“Establishment” will try to defer and delay crises until after the election
Deutsche Bankcould trigger 2008 again, or just be “settled” quietly
An offer you can’t refuse…Italian 50 year bonds (and a horse head in bed)

Deutsche Bank

Deutsche Bank

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30 or 40 days until I quietly walk into
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the White House it’s a unique dynamic
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when you’re looking at things in play
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specifically relating to Deutche Bank
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you have the entire European banking
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system that is under a lot of pressure
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and I want that pressure is coming from
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our side the Department of Justice right
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well that’s right this is sort of a
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clean-up operation mop up from the
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2008-2009 . and before where Deutche Bank
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Bank amongst many others in the
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financial community were distributing
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mortgage-backed securities and now the
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Department of Justice is saying yes but
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you knew that they were not good things
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in those little packages that you put
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together and you were selling them
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without the adequate disclosures they
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needed and we need to hold you to
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account
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look we’re not going to take this to
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court you just pay a setup now and
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everything will be fine
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it’s really an interesting thing because
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massive amounts of money changed hands
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from Wall Street to the Department of
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Justice in recent years into the
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Treasury Department where they basically
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said we could make a very big deal of
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this or you can pay to make it go away
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and they’re like okay so basically we
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admit no guilt and pave any and the
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problem disappears right right right
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that’s exactly right venue will not
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massage your knees just make the
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adequate payment and everything will be
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fine
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well so for the person who actually is
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looking at this and saying well this is
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george bank that’s over in Germany
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that’s really not the case they’re
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closer to home than any bank actually
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here in America closer to wall street
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anyway
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well yeah and in 1792 under a button
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would tree which if i’m not mistaken is
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the same thing as a sycamore tree at 68
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wall street there was a signing the
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document by 24 stockbrokers and what
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they did
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that point was launched the new york
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stock exchange and decide the rules for
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trading securities because that had been
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fairly unruly prior to that now
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Deutsche Bank is in the building closest
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to that site they are a German
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powerhouses you say but they also occupy
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a very important place in the American
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financial landscape not just because of
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their real-estate position but because
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the role they played in a lot of issues
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here in the United States financially
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that they’re very very important player
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when an important player Deutsche Bank in Germany to I
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mean Merkel is looking at this very very
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close
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she has to make the right choice
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politically for herself as well it’s not
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just Trump and Hillary looking at this
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it’s her political career on the line
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and that’s what makes this issue
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Deutsche Bank more intriguing than a
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mere Department of Justice settlement
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the question facing miracle and the
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current White House Obama and his crew
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believe it or not they’re involved too
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is can they allow the financial debacle
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to be precipitated right now at this
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moment by the Department of Justice was
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14 or 15 billion bucks the Deutsche Bank
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set that aside for a potential fine that
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they’re looking at know they have
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litigation costs which they have set
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aside a couple billion but nowhere close
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to the number that the DOJ suggested so
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what you’re talking about is a proposed
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fine which is a bank killer that
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wouldn’t ordinarily be the case but
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given the high leverage of that
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institution and the low level of capital
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and cash that Deutche Bank currently
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has here’s the situation miracle can’t
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bail them out or she loses political
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standing and this is a very important
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German institution but if she bails them
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out it’s a real issue and she may even
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lose her office now ordinarily I don’t
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think obama or any outgoing president
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would pay attention to the details of
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this kind of settlement but i’m guessing
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that it’s miracle and Obama that are
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informing the Department of Justice
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right now we’re to settle so as not to
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trigger a global financial crisis
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heading into the u.s. election
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well and I think it’s important to look
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at a global financial crisis because
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it’s usually not just one bank its
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Bank sometimes that can trigger the next
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and the next and the next
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the whole European banking system may be
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on shaky ground depending on how this
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turns out
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well you’re right it’s the Department of
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Justice pushing and the question is if
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they push for two large and number you
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are talking about the European banking
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system the entire European banking
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system which comes under a tremendous
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amount of pressure and it goes beyond
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way to bank commerce bank isn’t even
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worse position you’ve got the Italian
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Monta passkey really what we’re talking
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about is the underbelly of the European
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banking system which is exposed to
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target to is the clearing system for
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commercial banks and target two
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coordinates the capital flows from the
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commercial banks through the national
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central banks and ultimately through to
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the ECB the European Central Bank and
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what you see in the target to system is
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increased stresses it’s now a concern
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from one commercial bank lending to
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another commercial bank you have the ECB
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standing in the gap
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there’s basically a growing concern in a
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breakdown in the interbank lending which
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continues to be cut to a minimum here in
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recent one day if you brought this up
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before there’s really two europes when
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we look at the european central banking
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system you’ve got the northern countries
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especially Germany that are the stronger
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supposedly stronger countries then you
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have these weak countries we sometimes
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call the pigs
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ok and those countries a lot of times
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they benefited from early on having
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European Central Bank membership because
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they were getting low rate loans at that
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time the same kind of low rate loans
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that say a German would get with a
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stronger system but at this point you
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can see the money flowing right out of
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those picks back up into the north and
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that could cause i would imagine stress
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for Spain Portugal Italy you know these
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countries that just can’t hold it
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themselves
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there’s a European think-tank the
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acronym is kuvira gef IRA and they
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basically said look the imbalances that
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we see they have nothing to do with the
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trade imbalance that actually is getting
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Deutche Bank – what do you think?