October 4, 2016

Deutsche Bank asset valuations an illusion

I cannot understand the developing meme that concerns with regard to Deutsche Bank (DB) operations and balance sheet health are "overdone." On the latter point, DB and the other European banks haven't even marked their portfolio (private or sovereign debt) to anywhere near market.
The asset valuations are an illusion at DB and the other European financial institutions.

One day of rumors of a lower settlement with the U.S. Justice Department is not enough to eradicate the aforementioned concerns.

That is what I have heard all day in the business media, from too many who failed to see the emerging and consequential banking problems in the last cycle (when to some of us the problems were as clear as day).

Let's leave the fact that the credit default on DB's subordinated debt has widened to over 2011's desperate levels.

- Deutsche Banks' market capitalization is $17.7 billion.
- A troubled Twitter (TWTR) has a market capitalization of about $16.4 billion.

Res ipsa loquitor.

via thestreet