Bailout of Deutsche Bank Would Kill Angela Merkel's Political Career

05:34 02.10.2016

A government bailout for Germany’s major financial institution Deutsche Bank would exacerbate political hardships for Chancellor Angela Merkel, who recently has been under fire for the refugee crisis mishandling, and could be facing the end for her political career, German media reported.

On Wednesday, Die Zeit wrote that the German authorities rushed to develop a plan of state aid package to the bank, as its shares hit a record low of $10 a share amid a standoff with US authorities.

Deutsche Bank is struggling to deal with $14 billion in taxes that the US Department of Justice had put on it for selling bad mortgage-backed securities. The burden of taxes has nearly brought the bank to the verge of collapse.

However, the German finance ministry declined rumors it is preparing a bailout plan for the institution on Wednesday.

According to Frankfurter Allgemeine, such a bailout is unlikely from Berlin given the current political situation in both the EU and Germany. The allocation of a state aid package to Deutsche Bank would backfire on Germany, which has consistently pushed other EU nations to forgo assisting their struggling lenders, the newspaper wrote on Saturday.

"Of course Chancellor Merkel doesn't want to give Deutsche Bank any state aid," Frankfurter Allgemeine’s op-ed reads. "She cannot afford it from the point of view of foreign policy because Berlin is taking a hard line in the Italian bank rescue."

Allocating public money to a private bank would add up to Germans’ discontent with Angela Merkel’s policies tackle the refugee crisis, Sueddeutsche Zeitung reported. In the run up to 2017 federal elections, the ais would become a major blow for Merkel’s Christian Democratic Union (CDU) party, which has been losing supporters to anti-immigrant Alternative for Germany (AfD) party. At the latest statewide election AfD has reached a threshold 16 percent of votes, for the first time ever.

"Domestic political considerations make it unlikely that Berlin would play this joker. Even more unlikely is that the European Commission would agree. The political risk would be simply too high," Sueddeutsche wrote.

Meanwhile, Deutsche Bank’s Chief Executive John Cryan issued a letter to calm down the institution's employees, saying the bank is capable of withstanding the crisis.

"Deutsche Bank has to win back ground here because as exaggerated as the reports of an existential danger to the bank may have been, just as obvious are its continuing difficulties."

So far, Deutsche Bank has lost over 50 percent in its share prices this year and was called by the International Monetary Fund (IMF) the riskiest bank among those that may trigger the collapse of the entire banking system.

Source:
https://sputniknews.com/europe/20161002/1045915267/bailout-deutsce-bank-kill-angela-merkel-political-career.html

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The Fed's destabilizing, wealth-shifting policies amount to the biggest heist in human history

Mike Whitney
Counterpunch

Fri, 30 Sep 2016 00:00 UTC

Here's your economics quiz for the day:

Question 1 - What do you think would happen if you put $3 trillion into the financial system?

a - Stock prices would rise

b - Stock prices would fall

c - Stock prices would stay the same

Question 2 - What do you think would happen if you put $3 trillion into the economy? (Via fiscal stimulus for infrastructure projects, extended unemployment benefits, food stamps, etc)

a - Activity would increase and the economy would grow

b - Activity would slow and the economy would shrink

c - Activity would stay the same, so growth would remain unchanged

If you picked "a" for both questions, then pat yourself on the back because you got the right answers.

Now try to answer this one, last "bonus" question:

Question 3 - If adding money to the financial system boosts asset prices, and adding money to the economy boosts growth, then why did the Fed add $3 trillion to the financial system expecting the economy to grow?

More:

https://www.sott.net/article/329883-The-Feds-destabilizing-wealth-shifting-policies-amount-to-the-biggest-heist-in-human-history

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Secret Alpine gold bunkers are the new Swiss bank accounts

https://www.sott.net/article/329883-The-Feds-destabilizing-wealth-shifting-policies-amount-to-the-biggest-heist-in-human-history

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Obongo did well with those multi billion bailouts (transfer of all of the money from 99% to 1%). So he shall go on.
While his ex coworker that is now running for president has no choice, but struggle on.

Merkel has no future because she let migrant invasion to happen so above bank could go on (and 4th Reich, i.e. Germany). Now her solution is to sell it to Turkey and grant visa-less entry of Turks in the EU.

This is why

Brexit: PM to trigger Article 50 by end of March

https://search.yahoo.com/yhs/search?p=brexit+2017&ei=UTF-8&hspart=mozilla&hsimp=yhs-001

IZAKOVIC