Today Deutsche Bank shares are tumbling over 3 percent as fear grows that the institute is not able to pay a looming fine of $ 14 billion from US authorities.
This after selling a massive amount of misleading mortgages products in America.
In case Deutsche bank goes into failure, the Dutch daughter Internet pay system IDEAL might become inactive leaving many thousands of companies and clients in the Netherlands in complete chaos.
A bank crash not seen since 2009 looms as Chief executive John Cryan did not manage to negotiate a lower fine with the Justice department.
Today Investors are massively turning their back to the bank triggering a desperate situation with possibly serious consequences for the Euro and Europe. They fear that the bank is unable to pay the fine and will go into hibernation or worse.
Deutsche bank has publicly insisted it “has no intent” to pay anywhere near as much as the sum demanded by the US officials. They suggested “just walking out of America” to avoid the payment.
And there is more. Deutsche Bank is also in line for further cash penalties related to other past wrongdoings.
It’s a pity that this is only about fines and not jail terms for the very people that caused the massive misleading practices.
I believe the German government will not and cannot help the troubled bank since not so long ago Mrs. Merkel criticized similar government support for a big Italian institute.
And it should be weird if Germans, or even more terrible, European tax payers are charged to help Deutsche Bank paying their criminal fines abroad.