ThePythonicCow
19th August 2013, 01:45
The German Deutsche Bank, one of the major Western banks, the largest bank in Europe, closely entwined with other major British and American banks, appears to be in a increasingly difficult position.
Zerohedge reported in April 2013 (http://www.zerohedge.com/news/2013-04-29/728-trillion-presenting-bank-biggest-derivative-exposure-world-hint-not-jpmorgan) that Deutsche has the greatest derivative exposure of any bank, even exceeding JP Morgan Chase.
Zerohedge reported in June 2013 (http://www.zerohedge.com/news/2013-06-15/deutsche-bank-horribly-undercapitalized-its-ridiculous-says-former-fed-president-hoe) that Deutsche was horribly under-capitalized.
Deutsche is already under investigation for other financial irregularities, including the LIBOR rigging scandal.
Now The Guardian has a Reuters report of a new investigation of Deutsche Bank:
Regulator probes Deutsche Bank over money laundering controls
Reuters, Saturday August 17 2013
FRANKFURT (Reuters) - German regulator BaFin is looking into whether Deutsche Bank should improve the controls it has in place against money laundering, a German paper reported.
In BaFin's view, Germany's largest bank took too long to report some suspicious transactions to the police, possibly because the bank's internal alarm systems were not set up correctly, Welt am Sonntag reported, without citing its sources. BaFin is now looking at whether the problem is wider, the paper said.
The maximum fine would be 100,000 euros (85,273.80 pounds), the paper said in an advance excerpt of an article due to be published on Sunday.
BaFin and Deutsche Bank declined to comment specifically on the report. Deutsche Bank said though that it took its responsibilities on anti-money laundering seriously. "In light of changing regulatory requirements, Deutsche Bank is expanding its capacities and systems continuously. We cooperate closely with authorities globally," a spokesman said.
BaFin is already looking into Deutsche Bank, among other banks, as part of an investigation into the setting of interbank lending rates.
(Reporting by Edward Taylor, Alexander Huebner and Victoria Bryan)
Link to Source: http://www.theguardian.com/business/feedarticle/10934366
I will be surprised if Deutsche Bank manages to preserve the facade of being a solvent and independent bank through the end of this year, 2013.
Given the unfathomable complexity of entwined derivative exposures between Deutsche and other major Western banks ... well let's just say I'm wishing I could be in the pizza and black coffee delivery business in the major Western financial centers, the weekend that Deutsche blows up.
Zerohedge reported in April 2013 (http://www.zerohedge.com/news/2013-04-29/728-trillion-presenting-bank-biggest-derivative-exposure-world-hint-not-jpmorgan) that Deutsche has the greatest derivative exposure of any bank, even exceeding JP Morgan Chase.
Zerohedge reported in June 2013 (http://www.zerohedge.com/news/2013-06-15/deutsche-bank-horribly-undercapitalized-its-ridiculous-says-former-fed-president-hoe) that Deutsche was horribly under-capitalized.
Deutsche is already under investigation for other financial irregularities, including the LIBOR rigging scandal.
Now The Guardian has a Reuters report of a new investigation of Deutsche Bank:
Regulator probes Deutsche Bank over money laundering controls
Reuters, Saturday August 17 2013
FRANKFURT (Reuters) - German regulator BaFin is looking into whether Deutsche Bank should improve the controls it has in place against money laundering, a German paper reported.
In BaFin's view, Germany's largest bank took too long to report some suspicious transactions to the police, possibly because the bank's internal alarm systems were not set up correctly, Welt am Sonntag reported, without citing its sources. BaFin is now looking at whether the problem is wider, the paper said.
The maximum fine would be 100,000 euros (85,273.80 pounds), the paper said in an advance excerpt of an article due to be published on Sunday.
BaFin and Deutsche Bank declined to comment specifically on the report. Deutsche Bank said though that it took its responsibilities on anti-money laundering seriously. "In light of changing regulatory requirements, Deutsche Bank is expanding its capacities and systems continuously. We cooperate closely with authorities globally," a spokesman said.
BaFin is already looking into Deutsche Bank, among other banks, as part of an investigation into the setting of interbank lending rates.
(Reporting by Edward Taylor, Alexander Huebner and Victoria Bryan)
Link to Source: http://www.theguardian.com/business/feedarticle/10934366
I will be surprised if Deutsche Bank manages to preserve the facade of being a solvent and independent bank through the end of this year, 2013.
Given the unfathomable complexity of entwined derivative exposures between Deutsche and other major Western banks ... well let's just say I'm wishing I could be in the pizza and black coffee delivery business in the major Western financial centers, the weekend that Deutsche blows up.