As I wrote many times before , I am afraid that I can’t agree with the Rating Agencies…
But in this case, I am of the opinion that the situation of Deutsche Bank is much, much worse.
And I think that Deutsche Bank only has the current rating because it’s Deutsche and it is a German Bank.
With a Market Cap (as of today 17 August 2016) of 16,903.0 M euros (16.9 billion), and a few billion in provisions for legal costs, Deutsche Bank does not have the capital, nor the funds, to pay for the lowest estimate of the cost of the more than a thousand legal challenges it is facing.
To give an idea,and a very light one, and in just one case, please revisit my
This kind of settlements with the U.S., have in the past sometimes toppled 10 billion US dollars…
And the worse is that, as some people argue, in Deutsche Bank’s legal settlement in U.S.-based litigation regarding precious metals manipulation, the settlement might be meaningless.
Please see Zeero Hedge’s article “The Deutsche Bank Settlement is Meaningless”
by Sprott Money Apr 29,2016.
Please also revisit +++ V.I. (BBG) Deutsche Bank’s Pain Looks Set to Get Even Worse: Gadfly
And if one takes into account that they have to spend to restructure, there is no foreseeable end to DB’s troubles.
Let no one be fooled, or say they were not warned ahead.
Things will get much much worse before they will get any better.
Francisco (Abouaf) de Curiel Marques Pereira