yYAXssKCQaUWZcXZ79RJTBLvo-c;SfREtjZ9NYeQnnVMC-CsZ9qN6L0 Finance, Economics, Globus, Brokers, Banks, Collateral-Oriano Mattei: DEUTSCHE BANK......... Derivatives can fluctuate greatly depending on all manner of influences, including interests rates, meaning investors are spooked at the complicated banking products leading to the recent sell offs. Adding fuel to concerns is that these derivatives or "Level 3 assets" account for 72 per cent of its "Tier 1 assets", the allegedly stronger products, which give the bank its strength. But the fact that the bank's Level 3 assets make up two thirds of the Tier 1 products indicate that Deutsche is over leveraged by comparison to 12 other global banks who have on average 38 per cent Level 3 to Tier 1 ratios, says the Wall Street Journal. This could mean that the bank is over exposed despite claims that it has access to cash liquidity of €125 billion.

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venerdì 7 ottobre 2016

DEUTSCHE BANK......... Derivatives can fluctuate greatly depending on all manner of influences, including interests rates, meaning investors are spooked at the complicated banking products leading to the recent sell offs. Adding fuel to concerns is that these derivatives or "Level 3 assets" account for 72 per cent of its "Tier 1 assets", the allegedly stronger products, which give the bank its strength. But the fact that the bank's Level 3 assets make up two thirds of the Tier 1 products indicate that Deutsche is over leveraged by comparison to 12 other global banks who have on average 38 per cent Level 3 to Tier 1 ratios, says the Wall Street Journal. This could mean that the bank is over exposed despite claims that it has access to cash liquidity of €125 billion.

Deutsche Bank is facing an unprecedented crisis over its £36 trillion shadowy 'assets' bookGETTY
Deutsche Bank is facing an unprecedented crisis over its £36 trillion shadowy 'assets' book

Derivatives can fluctuate greatly depending on all manner of influences, including interests rates, meaning investors are spooked at the complicated banking products leading to the recent sell offs.
Adding fuel to concerns is that these derivatives or "Level 3 assets" account for 72 per cent of its "Tier 1 assets", the allegedly stronger products, which give the bank its strength.
But the fact that the bank's Level 3 assets make up two thirds of the Tier 1 products indicate that Deutsche is over leveraged by comparison to 12 other global banks who have on average 38 per cent Level 3 to Tier 1 ratios, says the Wall Street Journal.
This could mean that the bank is over exposed despite claims that it has access to cash liquidity of €125 billion.
Now US based David Hendler, the Founder and Principal of Viola Risk Advisors, says the bank is on the verge of "implosion" and that Chancellor Angela Merkel has a lot to do with it.
He drew similarities with Lehman Brothers whose gamble on credit default swaps based on mortgage-backed securities led to the housing crash and the systematic bail out of banks worldwide. 
In his report Mr Hendler said: "On the recent 8th anniversary of Lehman Brothers Bankruptcy, you would think global regulators and country heads would have a better game plan as to what to do to stabilise global capital markets. 
Lehman Brothers was the catalyst for the global banking crisis in 2008GETTY
Lehman Brothers was the catalyst for the global banking crisis in 2008
"It is quite disturbing.
"Back in early August, Viola Risk pounded the table recommending to investors, risk managers and regulators that they needed to trim back exposures dramatically. 
"We recommended a total exposure Sell on equity.
"For regulators and others that Deutsche Bank had the highest systemic risk in the world. 
German banks tanked in 2008 now Deutsche Bank is exposed to €41.940 trillion in risky derivatives GETTY
German banks tanked in 2008 now Deutsche Bank is exposed to €41.940 trillion in risky derivatives 
"The disagreement between the German government, Chancellor Merkel - won't bail out Deutsche Bank, and private markets on Deutsche Bank's destiny is very disturbing as it shows that there is no political consensus in Germany on the imploding Deutsche Bank situation. 
"The tug of war among the German and European Union politicos will just delay and exacerbate the Deutsche Bank resolution.
"In the next days, we will be writing more articles on the deterioration of Deutsche Bank's funding strategy, weak core operating units and inability to sell strategic assets to shore up capital. 
"Basically, Deutsche Bank is shut out of the global equity markets in terms of raising outside capital as counterparties and investors continue to step away from exposures to the giant German bank."

da "express.co.uk"

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