Deutsche Bank Could Be The "Lehman Moment" Of 2016

There is a ticking time bomb in the heart of Europe. Deutsche Bank, the largest bank in Europe, needs to be recapitalized. But neither the German government nor the European Central Bank (ECB) wants to fund it. This is leading to an unsafe and unstable situation. It could even trigger another global financial crisis.

The US Department of Justice (DoJ) recently levied a fine on Deutsche Bank (DB) in the amount of $14 billion. But the bank does not have the money to pay the fine.

There are three options:

1. The bank could issue equity. This is a bail-in.
2. The government could bail out the bank by giving money to it.
3. A third party could...
   

   Login required to continue reading.

   Setup a free account to get access to this article (no credit card required).

   View Full Article

   Already a member? Log in here