Deutsche Bank Collapsing? Is This Why Germans Warned to Prepare?
(N.Morgan) Since Germany issued the dire warning to its citizens to stock up on food and water, it is beginning to look as if Deutsche Bank may be collapsing.
If the leading bank in Germany collapses, the effect on Europe would be devastating, and it would be highly unlikely that the US would remain unscathed by such a collapse.
It would have a ripple effect that would travel all across the Atlantic. The Deutshe Bank’s financial woes are currently stressing the American Stock Market.
Angela Merkel has said that Deutsche Bank will not receive a bailout from the European Central Bank, which is the last resort lender of financial institutions in crisis.
The Department of Justice recently issued a $14 billion fine to the bank to settle a mortgage-backed securities probe, which the bank has no intention of paying.
“Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited,” the company said in a statement early Friday in Frankfurt.
“The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts.”
Deutsche Bank shares fell dramatically on Monday morning after news that Merkel won’t support the bank was released.
Deutsche shares fell as much as six percent to €10.67 in early Monday trading, the worst performance since 1992.
The bank has lost over 52 percent of its value since January and over 56 percent in the last twelve months. Earnings per share fell as much as €6.
The collapse has been prompted by a report in the Ger