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Offline the leveller

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« on: December 03, 2018, 08:48:24 PM »
It is no secret that DB has been in serious financial trouble for some time, but it is about to get worse - very much worse.
This could be the reason why May is being leaned on to come up with some/any kind of EU Deal and, if she manages it, the EU may well want to put her up for a Nobel Prize Peace.
Here's the reason WHY - Should the UK leave the EU on global trading (WTO) Terms (Hooray!), DB will have to apply to the Bank of England for a Banking Licence because, currently, its banking licence is covered by the licence it has to operate within the EU. However, this will no longer be sufficient and a new licence to operate in the UK will require an enormous capital requirement, which it hasn't got. Even within EU operations, the European Central Bank has told DB it needs to raise Euro 3.4Bn to continue, just at a time when major losses occur, year on year, and when the bank was raided this week for major money laundering investigations.
Deutsche Bank chooses to base its largest investment banking operations in the City of London, a centre of global flows of trade and wealth. They use this position as a global bank to keep their UK clients connected to markets, and help clients do business all over the world.
So, it would appear that London will not be able to grant DB  an operating licence! What does this mean? Well, DB London will have to close down, or the BoE will have to take it over while it tries to find the capital requirement to operate. Either way, Angela Merkel will be delighted by either of these prospects (NOT!). I suggest that this is the explanation for DB moving operations to Frankfurt and preparing to down-size in London. Of course, this will take them away from the centre of world-wide financial operations and it also explains why their CEO is warning of Brexit crises ahead. The crisis is for DB, not London!.
It also puts into context why Mark Carney is trying to put the "frighteners" on us today - clearly, he doesn't want to be responsible for owning/running a bank which is losing £700M + with all its associated regulatory problems, and financial investigations.
Welcome to the real world!
Perhaps in anticipation of these problems DB transferred its
Best regards                                                                                   
Chris Watkin

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