Deutsche gets cautious vote of creditor confidence

October 12, 2016

The German bank is issuing expensive debt. That shows it can access markets, despite a feared $14 billion U.S. fine. It's less powerful a signal than buying it back, as Deutsche Bank did in February, but at least shows investors don't fear losses that could eat into senior debt.

Deutsche blue-chip rescue has method and madness

October 10, 2016

The idea that German companies might put capital into the country's biggest domestic lender sounds like poor financial sense. Yet as a way to avoid a politically toxic taxpayer bailout of Deutsche Bank, and protect corporates' interests, it has a certain logic.

Guest view: Where is the IMF on Greece?

October 3, 2016

The seemingly endless Greek crisis may erupt again unless the country gets debt relief, writes former Citibank executive William Rhodes. The International Monetary Fund should take the lead in spelling out economic forecasts and the decisions Greece and its creditors must take.

Deutsche Bank has credible shock absorbers

September 30, 2016

The German lender's shares are falling on fears hedge funds are withdrawing cash. No bank would emerge unscathed if customers really turned tail. But Deutsche's relatively strong funding, and a battery of central bank support facilities, suggest liquidity isn't its main headache.

Germany gets economic rebalancing only half right

September 29, 2016

The country no longer depends on exports for growth. Strong domestic demand is the key driver these days, a government-commissioned report says. Yet the current account surplus is still rising. Blame not only Angela Merkel’s fiscal restraint but also weak corporate investment.

Past mortgage fines give Deutsche room for hope

September 28, 2016

Settlements by other banks imply the German lender owes up to $5.5 bln for mis-selling mortgage-backed securities. That's much less than the $14 bln the U.S. government wants. But a previous Deutsche fine was much bigger than rivals'. Calculating penalties is an inexact science.

Deutsche Bank has airbags – but only one matters

September 27, 2016

The German lender’s market value has shrunk below 14.5 bln euros on fears of big fines. Yet markets seem calm about knock-on effects. It’s less that post-crisis bank rules are fit for purpose, and more that Chancellor Merkel would have to be brave or foolish to let Deutsche fail.

Hadas: Central banks play with monetary absurdity

September 23, 2016

Monetary authorities have taken recourse in increasingly empty promises. The Bank of Japan's Haruhiko Kuroda has taken this verbal drama to a new and ultimately dangerous level. Central banks could rely on deeds, not words, if their tools and targets were more realistic.

Smaller fine might still force Deutsche fire sale

September 16, 2016

The German lender insists it won't pay as much as the $14 bln proposed by the U.S. Justice Department. But even two-thirds of that amount would deplete its reserves, a Breakingviews calculator shows. Deutsche may then need to sell assets to meet rising capital requirements.

Bayer can still be saved from $66 bln splurge

September 14, 2016

The agreed takeover of U.S. rival Monsanto is too expensive. The German group's investors have probably lost $7 bln in value already. The question is whether antitrust regulators do what shareholders can't and nix the tie-up. Paying the $2 bln break fee would still be preferable.