Skip to main content

Olaf Scholz has rejec­ted com­par­is­ons between Deutsche Bank and Credit Suisse.

 

Deutsche bank
Olaf Scholz has rejec­ted com­par­is­ons between Deutsche Bank and Credit Suisse as a slump in the Ger­man lender’s shares sparked another day of tur­moil for the bank­ing sec­tor.

Speak­ing after Deutsche shares fell as much as 14 per cent yes­ter­day, the Ger­man chan­cel­lor sought to shore up con­fid­ence in the coun­try’s biggest bank, with investors still nervous after the forced takeover of Credit Suisse.

«Deutsche Bank has fun­da­ment­ally mod­ern­ised and reor­gan­ised its busi­ness and is a very prof­it­able bank,» Scholz said at a sum­mit in Brus­sels after being asked if the lender was the new Credit Suisse. «There is no reason to be con­cerned about it».

He insisted that the cap­ital con­trols of European banks were «robust, thanks to work over the past few years and also to the efforts of the banks them­selves».

His com­ments came as part of a con­cer­ted bid by European lead­ers to calm mar­ket nerves as shares slid in the region’s biggest banks.

Ana­lysts said there was no fun­da­mental reason for the hefty down­turn in

Deutsche’s shares. «Investors are wor­ry­ing about the health of the bank. However, we are rel­at­ively relaxed because of Deutsche’s robust cap­ital and liquid­ity pos­i­tions,» Stu­art Gra­ham of Autonom­ous Research said. «To be crys­tal clear — Deutsche is NOT the next Credit Suisse».

www.sba.tax

Labels:

Comments

  1. Jean25 March 2023 at 11:52

    Fast forward 18 months later and it turns out Deutsche Bank is the next Credit Suisse. Would that be such a shock? I don't think so. Considering everything that has happened, I wouldn't find it surprising. I hope it doesn't happen but I wouldn't be 100% sure it won't. From the outside, the German bank looks good, with enough liquidity to withstand these times, but we don't know everything.

    ReplyDelete

Post a Comment

Cloud Bookkeeping

HS2 cost cuts new routes and add delays.

 Trans­port depart­ment offi­cials have begun work on «Project Sil­ver­light» sug­gest­ing the high­speed rail scheme might face four addi­tional years of delay. The planned High Speed 2 rail line faces fur­ther delays of up to four years and more cuts to the project under plans being drawn up by min­is­ters to rein in its bal­loon­ing costs. The extra delays to the coun­try’s biggest infra­struc­ture project would mean that it would not be com­pleted until as late as 2045 — 12 years after ori­gin­ally planned. «This is a func­tion of infla­tion; we are hav­ing to find huge sav­ings because the cost of everything the depart­ment is already doing will have become so much more expens­ive by then,» said one gov­ern­ment offi­cial. In Octo­ber, the FT repor­ted that the Treas­ury had asked HS2’s man­age­ment team to identify poten­tial cuts or «scope reduc­tions» to the high-speed line. Trans­port depart­ment offi­cials have sub­sequently begun work on Project Sil­ver­light aimed at fi...
4 comments
Read more

Doubt on CS's collateral.

  Credit Suisse provided an emergency $140mn loan to Greensill Capital based partly on invoices to companies that deny ever doing the business stated on the documents. The Swiss bank provided the loan in October 2020, less than five months before the collapse of Greensill, a supply chain finance firm that counted former British prime minister David Cameron as a senior adviser. Invoices issued by metals magnate Sanjeev Gupta’s Liberty Commodities and sold to Greensill formed part of the collateral for the loan, according to documents seen by the Financial Times and people familiar with the transaction. Yet several of the parties named on the invoices have told the FT they did no business with Liberty. GFG has consistently denied any wrongdoing. Credit Suisse’s loan had a clause dictating that the collateral value had to be equal to or greater than the $140mn borrowed. The terms of the debt agreement only allowed invoices on Green-sill’s balance sheet to count towards this tally if t...
2 comments
Read more

Tax cut

  Sterling tumbled against the dollar to below $1 . 09 ,  hitting its lowest point since 1985 ,  after UK chancellor Kwasi Kwarteng unveiled a £45bn debt-financed tax-cutting package that sparked a historic increase in borrowing costs .  Kwarteng’s political and economic gamble includes the biggest set of tax cuts for 50 years ,  with the end of the 45p additional rate for the highest earners as well as a sharp reduction in levies on dividends .  But concern over the amount of debt required to finance the tax cuts triggered a frenetic day of trading that raised doubts on whether Britain’s new economic approach was sustainable .  «Britain will be remembered for having pursued the worst macroeconomic policies of any major country in a long time» . Kwarteng has staked the political fortunes of the Conservative party on the bet that the radical tax cuts and deregulation will raise Britain’s sluggish growth rate to 2 . 5 per cent .  «This is a new appr...
Post a Comment
Read more