Famous last words - Deutsche Bank: “We don’t need a bailout”

From a German politician (as reported in Zerohedge): “you can’t compare Deutsche Bank with Lehman. The bank is in a position to get out of this situation on its own.” As the adage goes: A rumor is confirmed as fact once that rumor is denied three times by politicians…

DB stock is down over 7% today. It’s likely the primary reason that the SPX is down 13 points as I write this (that plus the dismal new home sales report). DB stock has hit another all-time low. DB has lost 51% of its market value this year. The BKX bank stock index is down only 4% this year. The relative performance isn’t just a red flag, it’s a “code red” five-alarm danger signal.

Here’s the biggest indicator that DB not only has credit problems, but its assets are significantly overvalued by its auditors and internal financial people: DB’s stock market capitalization is 30% of it’s book value – i.e. DB trades at less than 1/3 its book value. The amount of cash on DB’s balance sheet is nearly 7x greater than its market cap.

Full article at:

http://news-uncensored-fresh.blogspot.be/2016/09/famous-last-words-deutsche-bank-we-dont.html