Friday, September 30, 2016

Your first October Surprise

Step up to the microphone, Deutsche Bank:
German officials could be about to find themselves in an uncomfortable position: Being called on to show they're ready to rescue a bank in a part of the world where such operations are considered taboo.

Deutsche Bank came under intensified market fire Thursday, the latest salvo being a Bloomberg report that a small number of hedge funds are trimming their sails at the German bank.
So, what's the issue?
The bank has about about $16 billion in equity and some $160 billion in debt.
If you read the linked article from CNBC, the writers are going all out to assure us that, no, this isn't a Lehman Brothers-style meltdown. Events get in the saddle, though. Something to watch carefully.

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