International Business & Economy Potential collapse of Deutsche Bank could trigger an economic catastrophe

Potential collapse of Deutsche Bank could trigger an economic catastrophe

Author

Date

Category

- Advertisement -

By: Frank Doe

And so it seems that Angela Merkel, the Chancellor of Germany and the de facto leader of the European Union, is running into deeper troubles than she could imagine.

Her statement made on the 20th September 2016 at a news conference in Berlin, admitting regrets over Germany’s liberal immigration policies saying, “If I could, I would turn back the time many, many years”, this would not have spared her the imminent crisis of monumental proportion.

Over the past three days this week, the survival of Deutsche Bank, Germany’s national bank, comes into question as the bank hangs precariously on the balance.

- Advertisement -

It spelled doom for Deutsche Bank when its largest lender, the Qatar Royal Family, who was involved in bond deals just last week with the bank, “pulls plug on future equity” and expressed “concerns over the bank’s long term strategy”.

“Analysts say this could be the final nail in the coffin for the bank which was accused of using stealth methods to woo investors” this week by hiding risks amid bond offerings.

The potential collapse of Deutsche Bank could trigger an economic catastrophe in the EU with the bank’s holdings worth two thirds of the entire German economy and the contagion could well spread worldwide putting the global banking system in jeopardy.

There is no time for bondholders and the UK in particular “to be catching falling knives” based on wishful thinking instead of rational economic understanding, as UK hasten its negotiations on the terms of BREXIT.

This could well trigger the dissolution of the rest of the European Union.

The worst is yet to be.
Follow us on Social Media

Send in your scoops to news@theindependent.sg 

No tags for this post.
- Advertisement -

Calvin Cheng cautions: “The PAP needs to remember how to be a political party”

Singapore -- Former Nominated Member of Parliament (NMP) Calvin Cheng took to social media to say that the era of Lee Kuan Yew-style politics was over. In a Facebook post on Tuesday (Apr 13), Mr Cheng wrote about politics in Singapore. “For half...

Those who recover from Covid-19 may be at risk for blood clotting: S’pore study

Singapore – According to a study by the Nanyang Technological University (NTU), people who have recovered from Covid-19 may face risks of blood clot formation due to an overactive immune response. Covid-19 patients, especially those with pre-existing cardiovascular conditions, may be at...

Tan Cheng Bock and Goh Chok Tong were apparently from the same CCA in RI

Singapore -- Known to have been close friends once, Dr Tan Cheng Bock and Mr Goh Chok Tong recently attended the same scouting event at Raffles Institution, indicating that they were likely from the same CCA as well. In a Facebook post...
Follow us on Social Media

Send in your scoops to news@theindependent.sg 

No tags for this post.
Theindependent