Investment Turmoil – Billions were wiped off stock markets around the world yesterday.
Clearly the investment world at large did not react to my previous doom laden blog, but rather at the news that Europe’s largest bank, Deutsche Bank, is in disarray.
The massive sell-off in Deutsche Bank was triggered by Chancellor Merkel’s ruling out any government led financial rescue of the bank.
In my blog I alluded to the previous banking crisis and suggested nothing had changed. How apt therefore, that no sooner had my blog been posted the news broke that Deutsche Bank is struggling to cope with £35 Trillion of high risk derivative contracts, concerns were expressed as Deutsche is cross linked with many other lending institutions.
Deutsche will also have to cope with (or renegotiate) a recent massive fine rumoured to be as high as $14bn.
This is further to being fined a total of $2.5bn in 2015 for Libor rigging (the FCA received £227 Million of this). It was reported in 2015 that Deutsche repeatedly misled the regulator.
You will not be surprised that there are widespread fears for the major clearing banks and for financial markets at large.
I don’t know about you, but that makes me very concerned indeed. If you share my concerns, and wish to make arrangements to protect your future click HERE.