As I have previously written, DB is in a dangerous state, and the minute faith is lost DB will plummet into a death spiral, causing massive fallout across Europe and the US. With the deepening malaise in Europe, deposits are down, defaults are up, and there are no safe assets left. Well, what about Deutsche Bank NA, you ask? Their holdings here are primarily real-estate, as I previously noted, and therefore subject to revaluation if any additional ‘major events’ were to occur which further destabilize the DB portfolio… and DB is just one card in a house of cards which no American or European can avoid the shadow of – when it falls we will all be hit, and hit hard.
Well, just a short while ago the news broke that DB may have concealed massive losses during the 2008/2009 financial crisis, and that they likely continue to do so. From Zerohedge we learn this evening that DB concealed approximately $12Bn in losses during the financial crisis –
“Forget the perfectly anticipated Greek (selective) default. This is the real deal. The FT just released a blockbuster that Europe’s most important and significant bank, Deutsche Bank, hid $12 billion in losses during the financial crisis, helping the bank avoid a government bail-out, according to three former bank employees who filed complaints to US regulators. US regulators, whose chief of enforcement currently was none other than the General Counsel of Deutsche Bank at the time!”
OK, so it seems that I have a terrible sense of timing – I believed that DB would crash this past summer, presumably around the time their 2Q 12 Earnings report was released… but they managed to keep the wool over everyone’s eyes longer than even I thought possible, but alas, the end is near as the cover blows off, revealing willful acts of misrepresentation which conjure the name “Lehman Brothers” and “Countrywide”. Interestingly, they have planned for this day quite carefully, as ZH notes that the present SEC Enforcement Chief, in none other than DB’s General Council at the time of the alleged acts of fraud.
How deep does the rabbit hold actually go, folks? This bit of news regarding DB may be the last reality check we get before the all-out chaos begins everywhere, because it is just a matter of time and distance before we hit bottom, because the end truly has begun, and all the pieces are coming together as we have recently achieved free-fall speed.
WE HAVE BEEN WARNED…THE TIME IS NOW NEAR
LT ~Those who abuse Liberty, sentence themselves to death!