PART 1 https://steemit.com/investments/@jackal/welcome-to-the-world-financial-crisis-why-markets-could-collapse-at-any-moment-part-1
PART 2 https://steemit.com/investments/@jackal/welcome-to-the-world-financial-crisis-why-markets-could-collapse-at-any-moment-part-2
The new Lehman Brothers, but otherwise everything is good.
Afetr the ECB has called Italy the weakest link in Europe's banking, enraged Italian Prime Minister Matteo Renzi called Deutsche Bank the weakest and at the same time the most dangerous element not only in Europe but throughout the world. If the monetary authorities will allow Europe to fail Italian banks - the next in the order is Deutsche Bank as a holder of the largest in the $ 75 trillion derivatives portfolio in the world, which includes a large number of financial instruments of Italian banks.
One of the main reasons for the collapse in 2008 was the fact that banks have a huge portfolio of derivatives with a huge shoulder, as well as extremely low reserves.
It is believed that the bank has a good ratio of reserves to capital, reflected in the double digits, and conducts an accurate credit policies.
At the end of its existence, Lehman Brothers had a ratio of equity to reserves only 3%. The fall of the total value of assets in the portfolio to refinance more than 3% has destroyed the bank. Today, these same figures shows Deutsche Bank with 3.5% reserves and the volume of the portfolio in the $ 75 trillion global GDP roughly equivalent.
Investors are watching the Deutsche Bank since 2013, sees two parallel universes: in one the bank and officials warn about the wonderful position of the Bank and that he managed to get out of the crisis in 2008, in another the bank repeatedly issues additional shares and in June 2016 fails the stress test by the Federal Reserve, the IMF calls the bank the biggest threat to the banking system of the world. The result - almost complete impairment of the bank's shares. After Deutsche reported a € 7 billion in losses for 2015. Citi Bank issued a statement to Deutsche Bank saying that the bank needed to raise the level of reserves before 2017 to at least 4%, to increase reserves by € 7 billion.