Merkel out for Deutsche Bank - Nicole Pabello Reports

By now, who ever hasn’t heard at least one time the name of the head of the German government, the Chancellor, Angela Merkel means have been away from any sort of news or this planet.

Since 2005 that she stepped in the position, Germany has been the center of attention and a heavy voice in the EU. When it came to decide international manners that have shaken the world. From the 2008 financial crisis sweeping out the financial system and central banks of Iceland, Ireland, Greece, Spain and Portugal to the refugee Crisis in Syria among other countries. It all concern Germany.

It went to a point that, being the strongest economy in the EU, the declarations of Merkel towards lending money to Greece or not to, meant saving a nation from immediate solvency crisis or leaving it to its luck.

Now, once again is on the spotlight with a topic that since 2008 the world doesn’t seem to move forward: the solvency of the banks.

According to the article featured by Bloomberg last 25 September, Deutsche Bank, the German biggest lender, have half its market value over this year. Now, is facing legal issues against the U.S Justice Department concerning mortgage-backed securities (Is like being back to 2008, now a German as the antagonist bank, facing up to $14 billion in sanctions).

Among all the information given by the article, such as the unsuccessful attempts by its CEO, Jong Cryan to regain profits by financial strategies such selling riskiest assets and cutting jobs. There is a lack of analysis of what would it mean in real terms, if the German Bank ought to pay sanctions, which at the moment cannot meet. What sort of pressures brings this to economies depending on Germany’s economical performance?

Mention articles

http://www.bloomberg.com/news/articles/2016-09-24/merkel-rules-out-assistance-for-deutsche-bank-focus-reports

 

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