zerohedge.com / by Tyler Durden / Sep 30, 2016 3:05 PM
On a day in which DB appeared set to tumble into the a abyss, we saw the defensive cavalry emerge in full force, starting with a letter by the CEO bashing “speculators”, a massive short squeeze with no locate available, a twitter rumor of a settlement being picked up as unconfirmed “news” by a reputable French agency (which apparently has better access to events in Germany than the German press), and moments ago Bank of America chimed in when it upgraded DB’s credit to “Neutral” even though BofA paradoxically admits that “DB’s credit profile likely to remain weak” saying that “we do not particularly like the profile of a credit where performance is skewed to an outcome that is so inherently unpredictable – in this case, guessing what a regulatory fine will be.”
BofA adds that in its view, the German bank “is now experiencing a nasty confidence shock which will likely impact its franchise into the medium-term. It could be that a capital increase is on the horizon, after the fines have largely been settled. In our opinion, DB is likely to be a weak bank for several years from now, though, even with a capital increase.”
It concludes as follows: “in our opinion, DB is likely to be a weak bank for several years from now, though, even with a capital increase.”
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