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’Deutsche on the liquidity trap – and the last hurrah
Quantitative Easing v2.0 is almost entirely expected, at this point.
But it’s also something else, according to Deutsche Bank. It’s one last chance to avert a real liquidity trap and — intriguingly — to avert a retirement industry crisis.
No respite for Autonomy
Shares in the software company were down again on Tuesday in London. In fact, they were the biggest faller in the FTSE 100 at pixel time:
One factor behind the latest slide is a downgrade from Deutsche Bank.
Now! That’s What I Call Capital Increase 2010
Deutsche Bank’s capital increase is turning out to be an increasingly big ‘issue’ for the German banking giant.
First, let’s point out that the bank is even branding the move “Capital increase 2010″
We are all ostriches now
More on global demographic time-bombs, this time from Deutsche Bank, which has stumbled upon a potential answer: mass migration from the developing to the developed world.
Writing in the latest edition of Deutsche’s Long-Term Asset Study,
Delta One is the HOT new area for banks
FT Alphaville has written about the rise of Delta One and equity derivative divisions before.
But here’s further proof that banks are now increasingly setting themselves to profit from their Delta-One departments — divisions like the one Jerome Kerviel at SocGen worked for.
The great European bank rights issue guessing game
If you’re wondering who might follow the lead of Deutsche Bank and tap its shareholders for cash this table should help.
Source Merrill Lynch:
Basically everyone on that list might need a cash call (except National Bank of Greece which,
Motivational indexing
The Wall Street Journal reported on Wednesday how — shock, horror — Wall Street banks may have actively created and pushed securitised products to some clients which they simultaneously advised other clients to bet against.
Das Stressometer
CreditSights has created a sort of EU bank stressometer.
In their words, it seeks to “exploit” the additional disclosure on sovereign risk published in the CEBS-administered European bank stress tests.
Deutsche Bank plays the ‘good German’
So Deutsche Bank has decided to set a good example to its peers and play ball with Europe’s bank regulators — sort of. Amid European mutterings about German bank recalcitrance — i.e. the refusal by six German banks to publish their government debt exposure as part of European banking stress tests – Deutsche said on Monday it would publish full details of its sovereign holdings.
Jargon alert: banks and their ‘platforms’
In light of the emergence of yet another ‘platform’-based product on Thursday — Deutsche Bank’s platinum Ucits platform, in connection with Paulson & Co’s retail fund offering — we thought it probably best to explain something to the banking community.
Stressful European bank spoilers
Not more European bank stress-test leaks. Although at least this particular indiscretion, centred on German banks, hints at how the actual tests will be received.
As Bloomberg reported on Tuesday:
Ackermann whiplash
Presenting a new condition for financial markets — Ackermann whiplash.
Whiplash Ackermann Disorder. Symptoms include a market dislocation caused by the abrupt about-face of Deutsche Bank CEO Josef Ackermann on Greece-related subjects.
Of Taunus and Tier 1
Here is a lovely picture of the Taunus mountain range, near Frankfurt:
And here is a not-so-lovely snapshot of the Tier 1 capital of a certain Taunus Corp, Deutsche Bank’s bank holding company in the US.
A century-long look at the US equity market
Here is an interesting chart from Deutsche Bank’s Jim Reid:
It shows the inflation-adjusted level of the Dow (in today’s money) back to 1900, together with two trend lines – one for the whole period and another based on trend in place from 1900 for 1994.
What Deutsche Bank did yesterday
So how restrictive is that German ban on naked short-selling of eurozone CDS?
Would it say, apply to Deutsche Bank, who do most of their CDS trading from outside Germany?
The answer, apparently, is no.
What’s with Hannover and Generali De?
The (very) early price action in most of the financials in the BaFin naked shorts ban:
Related link:
How the Wolf Pack is (already) playing the BaFin ban – FT Alphaville
Markets react to German naked shorts ban
It’s the morning after Germany banned naked short sales of key financial stocks — and markets seem not to have liked it one bit.
First, reaction in Germany, as the protected stocks took a hit. Flashes,
Ackermann’s curious Greek-speak
Attention Josef Ackermann: you’re confusing us.
According to a Reuters report on Thursday, the Deutsche Bank chief executive is not so sure that Greece will be able to repay its debts. He’s also somewhat skeptical about Portugal,
Eurozone bank CDS goes squeaky-pop
Eurozone financial CDS has well and truly tightened from last week’s blow-outs:
Click to enlarge the chart, provided by Markit. Sovereign CDS is also squeaking back.
Spare a thought for those who bought protection late last week…
Snap news
Breaking pre-market news on Thursday,
- BNP Paribas reveals €5bn Greece sovereign exposure – statement.
- Commerzbank reports first profit in seven quarters – statement.
- Deutsche Bank ups stake in China’s Hua Xia bank to 19.9 per cent – statement.
Deutsche Bank will support Greek bonds
Well, here’s one more happy German buyer of Greek bonds. Deutsche Bank’s CEO Josef Ackermann publicly declared his support for Greek sovereign debt on Tuesday.
Flashes, via Reuters:
RTRS – DEUTSCHE BANK CEO SAYS IMPORTANT TO EXTINGUISH FIRE IN GREECE
RTRS – DEUTSCHE BANK CEO SAYS WE WILL PARTICIPATE IN HELPING GREECE,
Snap news
Breaking pre-market news on Tuesday,
- Lloyds makes Q1 profit as bad debts drop – statement.
- Deutsche Bank Q1 profit rises 48 per cent, beats expectations – statement.
- BP Q1 profits up 135 per cent on higher oil price – statement.
Hungarian watchdog fines Deutsche Bank on FX swap deals
Fresh on the wire:
RTRS-HUNGARY FIN MKT WATCHDOG FINES DEUTSCHE BANK 90M FORINTS IN RELATIONS WITH CERTAIN FX SWAP DEALS – STATEMENT
Here, meanwhile, follow the key points from the Hungarian language press release via a very rough Google Translation:
Subprime sushi
Oh, Greg Lippmann, you,
Who love sushi, hate subprime,
What is Fred up to?
That’s an FT Alphaville haiku in commemoration of Greg Lippmann’s time at Deutsche Bank. Bloomberg reports the avid raw-fish eater,
Deutsche Bank, Latvian bridges and EVFs
Risk — the magazine that first reported the story of Goldman’s Trojan currency swaps — has done some digging into how the Latvian capital of Riga managed to “lay their hands on spending money without reporting it as debt”:
Doubts over Deutsche and Deloitte’s derivatives dealings
Employees of Deutsche Bank, Deloitte Touche Tohmatsu and Banca Italease may face charges in Milan related to an ongoing investigation into derivative sales, Bloomberg reported on Tuesday.
From the news wire:
Who is Julian Rifat?
Early on Tuesday morning in London, traders were abuzz with speculation as to the identities of six men arrested in a joint operation by the UK’s regulator and the Serious Organised Crime Agency (SOCA).