Investors Confuse Deutsche Bank With German Central Bank

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Investors Confuse Deutsche Bank With German Central Bank

And they call them the smart money?!!

According to Stefan Krause, a member of the bank’s board, Deutsche Bank has benefited from lower funding costs in part because investors confused it with Germany’s central bank, the Bundesbank.

The topic came up at a panel discussion in Dusseldorf on Wednesday as Krause was elaborating on a comment by panel member Clemens Fuest (the president of the ZEW Center for European Economic Research), who pointed out a number of studies have demonstrated that “too big to fail” banks like Deutsche Bank typically get lower interest rates than smaller banks. Krause agreed with Fuest, and noted that Deutsche Bank also benefits from being mistaken for the German Central Bank.

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