Thursday, February 04, 2016
Is It Time To Panic About Deutsche Bank?
Via Zero Hedge: Back in April 2013, we showed for the first time something few were aware of, namely that "At $72.8 Trillion, The Bank With The Biggest Derivative Exposure In The World" was not JPMorgan as some had expected, but Germany's banking behemoth, Deutsche bank. Some brushed it off, saying one should never look at gross derivative exposure but merely net, to which we had one simple response: net immediately becomes gross when just one counterparty in the collateral chains fails - case in point, the Lehman and AIG failures and the resulting scramble to bailout the entire world which cost trillions in taxpayer funds. We then followed it up one year later with "The Elephant In The Room: Deutsche Bank's $75 Trillion In Derivatives Is 20 Times Greater Than German GDP". Then, last June, we asked the most pointed question yet: "Is Deutsche Bank The Next Lehman?"