Very Lehman-esque in terms of derivative exposure here from Germany's behemoth financial institution. DB short and long term CDS are exploding, and leadership from Deutsche has been seemingly non-existant. Institutions have already begun pulling money out of DB's clearinghouse, and with a deposit balance of ~600B euros, they may be susceptible to some sort of run on deposits. However, despite all of the negativity, Deutsche Bank's liquidity position is still somewhat solid, but that could change very quickly in a crisis of confidence. The stock price is trading at all time lows and continues its descent into an area where assistance from the ECB or Merkel seems inevitable. Meanwhile, volatility/gold/bonds should reap some profits if only momentarily.
BUCKLE UP FOLKS:
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