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Monday, October 10, 2016

Deutsche Bank Given Special Concession By ECB

The FT reports that Deutsche Bank was given special treatment in the summer EU stress tests that were meant to restore faith in Europe’s banks by assessing all of their finances in the same way.

Deutsche Bank, which has seen its share price fall as much as 22 per cent in recent weeks on fears that it could face a US fine of up to $14bn, has been using the results of the July stress tests as evidence of its healthy finances.

Deutsche’s result was boosted by a special concession agreed by its supervisor, the European Central Bank.

Deutsche’s results included the $4bn proceeds from selling its stake in Chinese lender Hua Xia even though the deal had not been done by the end of 2015, the official cut-off point for transactions to be included.

The ECB claims that it treats all banks equally, yet this is clear evidence that it doesn't.

The ECB knows that if Deutsche Bank goes under then so does Germany and the whole eurozone!

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