Well, there is more trouble for Germany's financial sector: Deutsche Bank's stock has plummeted as the bank has been tagged as under pressure to raise capital funds to allay concerns about cash funds required by regulators. The bank is trying to sell assets, including a stake in a Chinese bank where negotiations are continuing.
Angela Merkel, a proponent of no taxpayer bailouts, may have some problems with the situation, given her position. This comes on the heels of the US Dept. of Justice demanding $14 Billions with a B from the bank for its role in the banking crisis. Bank spokesman says it will not pay this demand as discussions have only begun.
This could be the end for Deutsche Bank, a bank that is not "Too Big" to fail. It is becoming increasingly evident that these financial behemoths are, in fact, a drag on the world's economy. They have too much power, take too many risks, lose control of their employees(see Wells Fargo), and are too cozy with regulators. Does this affect Tahoma? Yes, of course. Fall out from this failure could reduce visits by Germany's tourists who love Lake Tahoe.
No comments:
Post a Comment