SLOG VINDICATED AS MSM ADMITS (1) DoJ DEAL WON’T SOLVE PROBLEM & (2) FRIDAY ‘LEAK’ STORY WAS BOLLOCKS
This was the headline of Saturday’s Deutsche Bank post at The Slog:
This is the headline this morning at the CNBC website:
This was The Slog’s Saturday verdict on rumours of a DoJ deal on its Deutsche Bank fine:
This is a page capture from Reuters this morning (my highlights):
There is no other way to put this: Friday’s “story” was planted bullshit designed to stop a Bear-run on Deutsche before the Close. Today is a public holiday in Germany. Zero Hedge this morning restates its view that DB CEO John Cryan has not even started negotiations with the DoJ on the fine.
Meanwhile, over at Boombust TV – where the name of the game is as always to persuade nervous markets and older investors that everything is just dandy really – every barrel is being scraped to wheel out smug academics and investment analysts to say that the systemic risk associated with Deutsche Bank is small….whereas Brexit (of course) is still The Big Story.
It’s complete tosh: nothing – not one iota of empirical performance data – in the three months since Brexit has justified the insane global importance awarded to Brexit by Bloomberg. Again today, as I write this BTV is talking about Hard Brexit and a steadily falling value in Sterling….but nobody on the anchors there is pointing out that these ‘signs’ are completely counterintuitive.
Whereas Zero Hedge has this to say:
‘Following confirmation over the weekend that the rumors were false of a lower-priced ‘deal’ with The DOJ somehow saved Deutsche Bank from its potential liquidity crisis; Deutsche Bank assets are notably marked down this morning. Despite Germany being closed, Credit markets are trading in the US with CDS spiking to new record highs…”
‘…while repeated attempts by the likes of Reuters to get additional information from either the DOJ, the German government or Deutsche Bank itself have proven fruitless, overnight Frankfurter Allegemeine Zeitung reported that Deutsche Bank executives are heading to the United States in the coming days to negotiate the $14 billion settlement over a fine the infamous $14 billion for misselling RMBS.
The FAZ did not cite any sources for its report. Deutsche Bank did not immediately respond to a request for comment on Chief Executive John Cryan’s travel plans -in other words, not only was the $5.6 billion “agreed upon” number, as “reported” by Twitter and then AFP, bogus, but the actual negotiations have not yet even begun.’
Bloomberg has failed to mention either the spikes, or the evidence that one or both of AFP and Twitter invented the ‘fine relief’ story.
The Italian banking crisis remains insoluble
Italy faces a referendum
Hungary’s citizens have rubbished the EU migrant policy
Despite QE, the eurozone economy remains docile
Greece just took on another €3bn of debt
Britain’s Prime Minister has confirmed that undiluted Brexit will go ahead
All over the place, desperate Establishments bend every and any reality in order to protect Deutsche Bank – an institution infamous for over a decade for its reckless lending, criminal practices and massive derivatives exposure.
David Kelly of JP Morgan was on Bloomberg today arguing that – “with so much at stake” – reducing the DB fine is an imperative. Or put another way, when shedloads of money are involved, screw the rule of law.
It gets worse. I despair.