Deutsche Bank Offers 5% Yields If Depositors Lock Up Their Money For Three Months
One of the reasons why central banks around the globe have flooded the financial system with trillions in excess reserves is to make sure that banks no longer have to rely on potentially fleeting short term deposits (and is also why negative interest rates have become the norm in so many part of the world, that $10 trillion in bills and bonds now trade with a negative yield). As a result of years of such central bank policy, banks – mostly in Europe – no longer need to compete with each other for deposits: after all why offer tempting deposit rates in an age of NIRP when banks can get all the liquidity they need straight from the ECB and in some cases even get paid on it.
Furthermore, the whole point of NIRP is to slowly unleash negative, not positive, interest rates in order to discourage savings.
Which is why we were surprised to find that in a promotional offer by Europe’s biggest, and by many accounts most insolvent, bank, Germany’s Deutsche Bank is not only not rushing to penalize depositors, on the contrary it is offering its Belgian clients a 5% gross return for new €10,000 – €50,000 deposits if this money is locked up for the next three months. The offer is only valid for the next 40 days, until June 24.
Why the offer? All else equal it would appear as if Deutsche Bank suddenly needs liquidity quite urgently (but only enough per person so that in a worst case scenario the amount is fully insured by the government) with a 3 month lock up; so urgently it is willing to pay sn interest which is higher than on some European junk bonds.
It begs the question: how is it that DB can’t get a far, far cheaper deal in the bond market, or using short-term unsecured funds?
Here is Deutsche Bank’s offer to Belgian clients to open a DB Invest Plus account (google translated):
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What would have happened is Deutsche Bank had offered 3%. This is a signal that there is blood in the water. Next week’s markets will be interesting.
David DeGerolamo
This was (in my opinion) one of the best videos I have watched in a while on the Central Bankster Con & Scam -- Buying a house Vs. Buying Gold & Silver (at this moment in time) why silver is the brighter precious metal, why all of the above is happening, with all with the charts (in simple clear language) that make sense…unraveling the past -- the present & predicting the future.
A young nerdy intelligent guy who has his financial S_ _T…all in one green bag.
I sent this it to all my family & friends….as it is pulls a lot together and explains why this German Bankster up to it’s chinny chin chin in soon to implode toxic derivatives…is desperate to pull in cash for the upcoming Bail-In…why the entire Western Banking Cabal is heading to a Bail In like vultures and flies to a dead fiat -- credit -- debt -- derivative unsuspecting sheeple feast.
Folks the Central Banksters are in a panic…for good reason.
Buckle Up…and hope the air bag doesn’t kill you!
Here is back up to the above post:
An old truism: The truth is often said in jest.
Above is a funny video of exaggerated truth – said in jest…but the subject has been true (in a less compressed version of painful past reality) and will be true once again as the next (international) economic calamity is waiting for the black swan snowflake…to start an economic avalanche…leading to a BANK-BAIL-IN. 6 Points:
1. We don’t allow the FED/Banksters to control our money…the U.S. Congress does and the banks own most of Congress…both parties…and has since 1913 when the FED took them over.
2. It was written in the last Omnibus bill that the government won’t Bail-Out the banks (and themselves)…next time we will (through our 401k’s IRA’s, Bank Savings) through a Bank Bail-In.
3. The Banksters and the Government will take our money just like they did in Greece. (It will be for the Greater Good and all the Sheeple will say Baaaahh). It will be a Bankster/Government Blitzkrieg. Get ready now or get in line to be shorn.
4. The West’s Banksters/politicians/Governments (no matter the parties -- no matter the country) have set up the structure – the laws for a Bank Bail–In…for the Banksters & the Politicians & the Government to stay in power…to stay wealthy.
5. If you think this is just a conspiracy theory (and all or most of your money is in their control) just do nothing…and you and your savings/wealth will become the equivalent of a military term…Cannon Fodder….because economic war is being waged.
6. Its not going to be the end of the world…but it is going to be the greatest transfer of wealth in the history of the world.
If you think this is just a Right-wing conspiracy theory read this: It’s sources are CNBC & the New York Times…Liberal…not Conservative sources.
The Cyprus Template for Bail-ins Comes to Canada, Next Up the US
Submitted by Phoenix Capital Research on 03/24/2016 11:32 -0400
Canada has joined the “bail-in” posse.
Canada will introduce legislation to implement a “bail-in” regime for systemically important banks that would shift some of the responsibility for propping up failing institutions to creditors.
The proposed plan outlined in the federal budget released on Tuesday would allow authorities to convert eligible long-term debt of a failing lender into common shares in order to recapitalize the bank, allowing it to remain operating.
Source: CNBC
The above story suggests that only bondholders would be at risk of a bail-in but we all know that is just some sugar to make what’s coming go down easier.
What’s coming?
Savings deposits being used to Bail-In banks. Legislation is in the works in Canada, New Zealand, the UK, Germany, and even the US to do precisely this.
This whole template was laid out in Europe in 2012. Europe is ground zero for Keynesian Central Planning: a massive welfare state overseen by non-elected officials and Central Bankers who willingly break the rule of law whenever it suits them,
The guinea pig for the template was Cyprus.
The quick timeline for what happened in Cyprus is as follows:
-- June 25, 2012: Cyprus formally requests a bailout from the EU.
-- November 24, 2012: Cyprus announces it has reached an agreement with the EU the bailout process once Cyprus banks are examined by EU officials (ballpark estimate of capital needed is €17.5 billion).
-- February 25, 2013: Democratic Rally candidate Nicos Anastasiades wins Cypriot election defeating his opponent, an anti-austerity Communist.
-- March 16 2013: Cyprus announces the terms of its bail-in: a 6.75% confiscation of accounts under €100,000 and 9.9% for accounts larger than €100,000… a bank holiday is announced.
· March 17 2013: emergency session of Parliament to vote on bailout/bail-in is postponed.
· March 18 2013: Bank holiday extended until March 21 2013.
· March 19 2013: Cyprus parliament rejects bail-in bill.
· March 20 2013: Bank holiday extended until March 26 2013.
· March 24 2013: Cash limits of €100 in withdrawals begin for largest banks in Cyprus.
· March 25 2013: Bail-in deal agreed upon. Those depositors with over €100,000 either lose
40% of their money (Bank of Cyprus) or lose 60% (Laiki).
The most important thing we want you to focus on is how lies and propaganda were spread for months leading up to the collapse. Then in the space of a single weekend, the whole mess came unhinged and accounts were frozen.
One weekend. The process was not gradual. It was sudden and it was total: once it began in earnest, the banks were closed and you couldn’t get your money out.
Depositors lost between 40% and 60% of their savings above €100,000 as it was converted into bank equity. However, once it became equity, it could go to ZERO just like any stock.
That’s precisely what happened.
Account holders at Bank of Cyprus lost almost half their money above the €100,000 level, receiving stock in the bank as compensation. Those shares have since plummeted in value.
Uninsured depositors in Laiki Bank, also known as Cyprus Popular Bank, the nation’s second-largest lender, lost everything because the bank failed.
Source: NY TIMES.
As for those trying to get their money out of Cyprus, it took TWO YEARS before the final capital controls were lifted.
And the last remaining restrictions on transfers of money outside of Cyprus, imposed two years ago, will be lifted next month (APRIL 2015), said Chrystalla Georghadji, the governor of the country’s central bank.
Source: NY TIMES.
I have been warning for FIVE YEARS that Deutsche Bank was flirting with disaster, and that only ECB intervention (as part of the Eurozone’s “Too Big to Fail” policy) had saved Deutsche from its own gross mismanagement.
https://ncrenegade.com//editorial/does-deutsche-bank-have-nine-lives/
Well, they are definitely on their ‘last life’, since the newly implemented Basel III banking regulations, with their higher asset and liquidity requirements, now effectively preventing the ECB from giving Deutsche any more free “collateral” bonds -- So, can you say “Bail-In”, boys and girls?
DB is essentially setting themselves up in preparation for their audit this summer, so that when they fail, they are holding as much customer money in “unsecured deposits” as possible to offset their losses.
I would further remind my friends what I have previously warned about Deutsche Bank NA’s massive holding in mortgages on both commercial and residential real estate across the US -- when Deutsche implodes, there will be NO insulation between the American real estate market and DB’s collapse. Our realestate market WILL go down right alongside DB, as they are presently the SECOND LARGEST MORTGAGE HOLDER IN AMERICA -- only Wells Fargo holds more net mortgage assets in America than DB.
WE HAVE BEEN WARNED
John Corzine and MF Global comes to mind… Steal the folks dough.