Deutsche Bank, global financial giant, appears to be teetering near the brink of collapse.
Most recently due to a possible multi-billion dollar settlement demand from a U.S. lawsuit.
CCTV America’s Guy Henderson reports. Follow Guy Henderson on Twitter @guyhendersonde
Deutsche Bank's future unclear ahead of possible US lawsuitDeutsche Bank faces challenges due to a possible multi-billion dollar settlement demand from a U.S. lawsuit, including competition from digital startup banks.
Washington, D.C. last week, the IMF said that ultimately, the size of its investment arm was the problem.
A challenge that extends across many other parts of the sector, and complicated by other factors.
Being as big as it is may yet help Deutsche. There’s talk of a private sector bailout, if needed, by companies who fear the fallout from a meltdown at Germany’s largest lender. But the German Chancellor has shown less willingness to intervene.
Berlin believes poor-performing banks in other parts of Europe should suffer the consequences. So stepping in to help Deutsche might look hypocritical.
Still, even the sector’s disrupters said that if the biggest banks fail, the smallest suffer too.
Ken Li explains the state of the global banking system
To explain the current state of the global banking system, including earnings over the last year, CCTV America’s Michelle Makori spoke with Ken Li, director of Private Equity Investments at BH Equity Research.