alt Hacker NewsYeah, I'm going down a bit of a rabbit hole this morning. Turns out Wells Fargo's $59.7bn of private-credit lending is equal to 44% of its CE Tier 1 capital [1]. Meanwhile, Deutsche Bank got back to being Deutsche Bank while I was not looking [2].
[1] https://www.sec.gov/Archives/edgar/data/72971/00000729712500...
[2] https://www.reuters.com/business/finance/deutsche-bank-highl...
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Deutsche gonna Deutsche.
Recruitment tables should just have a banner that reads 'we've already spent your bonus on legal fees, here's some chocolate'
With the current concentration of wealth and banking, it almost seems like there is an incentive for banks to ruin themselves when they end up in a little trouble.
If the bank has trouble, shareholders/executives lose - if the banking system has trouble... then QE will solve the bank trouble.
Are you saying that they're using their private-credit portfolio as a Tier 1 capitalization to meet their regulatory demands (not sure if the ~10-15 something% rule has come back yet?)
Been a bit out of the finance game
DB's fall has been glorious. I shorted them back in January when I learned they were delivering 1.3% of their market cap in gold to the COMEX. No bank gives up that much of a hard asset unless something is wrong. Things are also looking bleak for Scotia Capital, BofA, Barclays, and UBS. JPMorgan seems to be doing fine. However Citigroup appears to be making out like a bandit. https://www.cmegroup.com/delivery_reports/MetalsIssuesAndSto...