Originally Posted by
BlackPeter
Agree with the "not a good look" re Deutsche Bank, though not a lot of news - just warmed up stuff. The fact that the SP recovered with the rumours that the fine might be smaller indicates as well that the bank is not lost - yet.
So far it looks like they have plenty of reserves and sufficient equity, but sure - these things can change if the bank stays under attack.
However - reading as well some German papers - nobody expects for the bank to falter. A state bailout would be obviously not a good look for the bank, and I am very sure that, if it comes, it would be very very expensive for DBK share holders as well as DBK management, and so it should be. However I don't believe for a second that the German government would allow the Deutsche Bank to crash - certainly not after the lessons learned with Lehman brothers and the GFC.
If we look however for the next reason for the world to stop spinning, than I think we need to look somewhere else ...