Yesterday, a Spanish medium, El Confidential, reported that the 6th largest bank in Spain, Banco Popular, was on the brink of defaulting, due to a heavy drain upon it caused by institutional and private depositors removing funds. Some of El Confidential's news points were confirmed by other news media. Officials at Banco Popular's headquarters indicated that their bank was still sound. Nevertheless, reports by reliable sources state that Banco Popular was indeed in trouble and that national and Banco Popular officials were seeking help from Spain's other major banks.
While financial cannibalism seemed to be in the air as Spanish savants huddled, many of the other major Spanish banks have been bruited about as shakey or even zombies.
This whole Iberian banking situation is actually repeated in Italy, as well as other European nations. Lurking in the closets of all of them are the dread derivatives, amounting to many score trillion of euros. Worse, each of the Euro member nations is loaded with debt. They also are interconnected in a village of houses of cards.
A bank such as Deutsche Bank, which is rumored to be in dire straits and which holds vast amounts of derivative exposure, would be one giant bank of which failure would start a cascade of connected banks on the way to their own failures. The Federal Reserve banking system has established in the Western world an interconnected central banking system under the Bank for International Settlements - the "central bank for central banks."
It was the U.S.-based Federal Reserve which, according to sophisticated observers, forced Deutsche Bank to absorb New York City's Bankers Trust. The latter bank had been known on Wall Street as the "Fed's Bank" through which to introduce funds and perform financial errands which weren't in the Federal Reserve's list of known powers. Due to pressures coming from legislative inquiries, the powers that be at the Federal Reserve made the decision to "off-shore" Bankers Trust by pressuring Deutsche Bank to take it over. Thereafter (1999), Deutsche Bank became the Federal Reserves primary off-shore financial/monetary tool. [There were others.] In return Deutsche Bank's operations in the United States had been solidified, and it was listed on the NYSE.
Although financial jeremiads are common on YouTube, I believe that the digital nature of national and combined currencies should cause all to be cautious. If the Federal Reserve can save the great U.S. banks, there is every reason to suppose that it can save Deutsche Bank and that it will not let it fail.
However, if collapse is inevitable in the Western banking system, prior to the "great fall," the world will witness the most astonishing financial cannibal feast ever seen. As with a fearful, ritual ceremony to honor Moloch, healthier, smaller banks will be offered to the great banks to provide them the strength and energy to continue on. With the "new blood" and the magick of the Federal Reserve and its witchy sisters, Deutsche Bank, J.P. Morgan Chase, Citibank, Bank of America & brother giants will plod onward. But will this only be another transplant for the Fed, or will non-banking corporations have to soon be offered to the Fed's demanding, hungry god?