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Showing posts from October, 2016

Greed & Laziness

In this most contentious and fascinating of election cycles, when nearly each conversation leads to politics, and when polarization runs so high, I ask myself - what is the essence of the debate between left and right?  What does it really mean to be a Conservative or a Liberal?

Deutsche Bank Part II – Going Nowhere Fast

A few weeks ago I published an article called “Deutsche Bank” that seemed to capture significant reader interest. To summarize, it made the point that a Glass-Steagall like legislation prohibiting institutions investing taxpayer insured deposits from financial risk taking was a pretty good idea. Now I write again, inspired by the continuing news surrounding this historic German institution.
It has recently been disclosed that in 2015 Deutsche Bank barely passed the European Central Bank’s stress test, and did so because the ECB counted as capital $4B that DB was to have received from the planned but not-yet-closed sale of a Chinese lending subsidiary. Counting this $4B was in direct violation of the rules of the stress tests in that the sale was not closed, and today, more than a year later, is still not closed. Of course, the reasoning of the ECB was clear. Keeping the world calm was far more important than holding DB’s feet to the fire. This speaks to the fragility of our global fin…

Deutsche Bank

The past few years have been very dark ones for this historic banking institution.  Now it seems like it is teetering on the verge of failure and is a source of global consternation with many fearing a “worse-than-Lehman” situation where DB fails and destroys the global financial market.  DB is indeed a weakened organization, but its downturn should not come as much of a surprise.