Tag Archives: derivatives bubble

Deutsche Bank’s Balance Sheet Is Toxic Waste

Deutsche Bank has $1.5 trillion of declared asset value on top of $67 billion of net worth.   But a large portion of its assets are loans and related financing vehicles and trading positions connected to Glencore, VW, the energy sector, emerging market companies, high yield and a highly unreliably valued net derivatives position.  It Deutsche Bank has “mismarked” the value of all these assets by just 5% its net worth is wiped out.

It’s more likely that the bulk of its assets are overvalued by at least 20-30%.   And that’s in the context of the current financial and economic environment – both of which seem to be quickly deteriorating.  In other words, DB is technically insolvent.   I performed a similar analysis on some big bank balance sheets in late 2007/early 2008 and my model predicted the collapse of Countrywide, Wash Mutual and Wachovia. All of the big Wall Street banks should have collapsed but we know how that ended.

The present situation doesn’t remind me of 2008 right before Lehman blew up.  It is more like 2008 x 10.  The hidden ticking time bombs in the global financial system are significantly greater than what was ticking 2008.  And the fraud and criminality used to cover it up, along with the propaganda devised to promote the idea that the economy is recovering, is many times more worse than it was in 2008.

Craig Hemke of TFMetalsReport.com me invited onto this podcast show to discuss Deutsche Bank’s latest “fluffed up” $7 billion “intangibles” write-down, which didn’t even scratch the tip of Deutsche Banks real “iceberg” of financial toxicity.

You can listen to this discussion at here:   Deutsche Bank And The Coming Global Financial Catastrophe

A friend of mine with connections at DB told me yesterday that his sources describe Deutsche Bank as a toxic junkyard of chaos and complete unaccountability.  In my opinion the German Government/EU will eventually either have to print money and monetize DB or its demise will trigger Lehman x 10.