
Back in February when this podcast started, we discussed the 30 market risks of 2019. A list that was put together by Deutsche Bank. Of course one of the points they conveniently forgot to add was their own failure. The Kapital News was sure to make sure that this banks potential failure was point number 31. We have been discussing recently the “restructuring” of DB, and now we have learned that the bank is set to cut 18,000 jobs through 2022. This is not a good sign as the bank has and continues to struggle to be profitable. History does not repeat, but it does rhyme, and should DB fail, this will be a global systemic event that will mimic the collapse of Lehman Brothers back in 2008. The interconnectedness of the global financial system is a myriad of fraud, abuse, corruption, tricky accounting methods, and unknown counter-parties – to mention a few. Yet, ironically, despite this, the system operates off of “trust and confidence.” Hard to believe that the greater society is supposed to place their trust and confidence in an industry that routinely breaks the law (i.e. money laundering, manipulating markets, charging customers with erroneous fees, etc…) and of course, not a single banker goes to jail. Furthermore, citing the last crisis in 2008-2009, these are the same people and corporations that get bailed-out. What happens to and with Deutsche Bank is a shot across the bow – we must pay attention.