FUCKING REKT

Nojokur
Nojokur

FUCKING REKT

http://www.cityam.com/246669/deutsche-bank-and-credit-suisse-booted-top-stock-market

All urls found in this thread:
http://www.cityam.com/246669/deutsche-bank-and-credit-suisse-booted-top-stock-market
https://www.youtube.com/watch?v=hdss-U0H7fA
http://money.cnn.com/2015/10/07/investing/deutsche-bank-takes-huge-loss/
Nude_Bikergirl
Nude_Bikergirl

@Nojokur
lemme guess... they're selling bonds @ negative interest rates???

PackManBrainlure
PackManBrainlure

TUMBLING DOWN
https://www.youtube.com/watch?v=hdss-U0H7fA

JunkTop
JunkTop

@Nojokur
Told you so.

Even with the bail in, their investors will make a huge loss, so they won't be a viable investment anymore. It's going to crash and burn.

Evil_kitten
Evil_kitten

ITS COMING

SomethingNew
SomethingNew

is this the start of 07/08 ?

Emberburn
Emberburn

@SomethingNew
Buckle up

Firespawn
Firespawn

they're at the low from july...

RavySnake
RavySnake

@Emberburn
In reality though it's not. The banks have much higher liquidity requirements and this isn't indicative of a systemic problem. So if they do collapse they're unlikely to take everything out with them.

TechHater
TechHater

@SomethingNew
No, actually not. The exact opposite instead. These days, banks are losing market cap, implying investors are vary of shaky days to come.

Back in '07 Bear Sterns went bust while most of the market was still partying. A little later (Sep08) Lehman went down the drain and that was when the majority realized there was something wrong, thus sold in Panic.

What we see here ist actually healthy in my opinion.

Harmless_Venom
Harmless_Venom

@Nojokur
Monte dei Paschi gets recovery plan approved by EU
pulls itself up through private investors
Deutsche Bank completely rekt
mfw krautniggers for weeks on Veeky Forums were going on about "hurr durr DB good, it's all Monte dei Paschi being a shitbank, WE DINDU NUFFING, buy the dip"

Boy_vs_Girl
Boy_vs_Girl

Getting kicked out of stoxx might have bigger negative impact people even realize. Also nobody bought the stress test results. You always get the best picture by simply looking stock performance, not the news. It's going down and dirty

viagrandad
viagrandad

@Boy_vs_Girl
The only negative impact that will come from them being dropped from stoxx is that mutual funds (and other various funds) who track that index will have to liquidate their holdings in DB so as to keep emulating the fund that they're tracking. Just how much this will drop the share price I'm not sure, though.

Inmate
Inmate

@viagrandad
When you are not part of the 50's club you are outside of the radar for future investments for large funds

Playboyize
Playboyize

@Inmate
Mate, DB is one bad trade away from needing a fucking bailout. I think future investment prospects from large funds (or any funds for that matter) are the last things on the minds of the CEO/CFO/BoD.

Snarelure
Snarelure

@Playboyize
Funds have rules set they have percentage partion in stoxx 50 for example.

I think future investment prospects from large funds (or any funds for that matter) are the last things on the minds of the CEO/CFO/BoD.

I dont get your point. Ofcourse they are thinking ahead what if it goes down and dirty and planning for that.

BinaryMan
BinaryMan

@Harmless_Venom
This basically.

DB is now just left with Monti dei Paschi's sofferenze shit and nobody will ever buy it off them.

Monti dei Paschi vs DB.
Monti dei Paschi wins.

DB will wreck the entire EU economic system.
They're 10 times bigger than Lehman, you know.

This is it!

Fuzzy_Logic
Fuzzy_Logic

@TechHater
agree 100%. Not only that but the actual negatives are clearly visible to all investing, and they're still turning a meagre profit and have an accurately priced stock.

This my friends is the market actually working correctly for once.

DB is bootstrapping, and is actually probably going to pull through and be a reasonable stable alternative to a lot of the flotsam floating around out there.

Lunatick
Lunatick

@Snarelure
I think we aren't understanding each other clearly. I'm trying to say that an index tracking mutual fund for stoxx 50 has to buy (in percentage proportion) the same stocks that are within the stoxx 50 in order to "track" or emulate the returns of the stoxx 50 for investors. Since DB is getting dropped from stoxx 50, the index tracking mutual funds that track the stoxx 50 will also have to sell their shares in DB so they can keep tracking the stoxx 50 (if they didn't sell DB then they wouldn't be tracking the stoxx 50 which wouldn't make sense as an index fund). Do you get what I'm trying to say? The price will move down even more in the next few days. Sorry if I'm not being clear.

Harmless_Venom
Harmless_Venom

@Lunatick
You're right, they're going down.
Question is whether they'll crash and burn in the coming months.

Soft_member
Soft_member

@BinaryMan
Lehman crashed for different reason than why DB is crashing. Lehman was bad bets in the MBS/CDS markets (which were tied into various other large financial institutions at the time). DB's losses are coming from litigation battles due to regulatory bullshit and LIBOR manipulation, bad moves with Postbank, and bad bets in the Chinese markets. It's mainly due to regulatory bullshit and litigation though. The traders fucked the bank over for a quick paycheck.

SomethingNew
SomethingNew

@Soft_member
Source,
http://money.cnn.com/2015/10/07/investing/deutsche-bank-takes-huge-loss/

5mileys
5mileys

@BinaryMan
btw they were saying the whole italian banking system was about the implode but the biggest italian banks passed the stress test in an excellent way. Krauts must be the most oblivious people in the whole world

DB will wreck the entire EU economic system.
whatever happens they will blame everyone but themselves (case in point: @Soft_member
)

takes2long
takes2long

@BinaryMan

What percentage of DB derivatives does MDP even make up of DB's pile of junk? It's minimal.

You realize this has been literally the conversation among all the finance professionals in Europe for the latter half of the decade right?

The market may not be underpriced but I'm still going to be surprised if it's very overpriced. Also they've got extremely strict risk correlations, and the government has repeatedly stepped up to support them.

It's not 2008 again. That was a surprise, this isn't. Stop spreading doom and gloom, or go ahead and short the hell out of it and put your money where your mouth is.

Likewise Vanguard is their biggest sholder so short them while you're at it.

kizzmybutt
kizzmybutt

@5mileys
I'm English and don't have any stake in DB. I want to be clear in that I'm not saying that DB isn't at fault here. They most certainly are. Whether it be mismanagement, bad trading culture on the floor, incompetence of executives, what have you. Banks know the risk of making big bets in derivatives before they make said bets. Banks also know it is illegal to submit false LIBOR bids to try and fix their shitty bets in the derivatives markets. DB is at fault for DB's (soon-to-be) failure.

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