Deutsch Bank in Trouble Again

The vulnerability of the banks is starting to bleed through the shadowy curtains of “securitization fail.” (Adam Levitin’s term for false securitization). Despite trillions given to the banks in faked sales of worthless mortgage backed securities (purchases by Federal reserve at 100 cents on the dollar), analysts correctly perceive this as a growing cancer on the balance sheets and financial statement of the big players on Wall Street.

The trading profits are fake. Most analysts understand this now. The more “profit” they report from proprietary trading the more they are relying on laundering money illegally obtained in the mortgage meltdown. Analysts understand therefore that an increase of “profits” derived from proprietary trading really means that (1) the rest of the operations are not doing well and (2) the bank is becoming increasingly vulnerable to major lawsuits by government and private interests. That is the reason for a drop in share price every time they report an increase in “trading” profits.

On Wall Street everyone is an insider. They all know that the income from proprietary and the assets reported on the balance sheets are fictitious. As this information leaks out the pressure put on regulators and law enforcement will become intense. The old deals will be shattered and anew round of criminal and civil actions will begin. Every time another homeowner scores a victory the skepticism about the profits and assets of these banks increases. purchases by Federal reserve at 100 cents on the dollar) , insiders and analysts on Wall Street have caught on to the game and are now worried when they see an uptick of profits from “proprietary trading” because they know it is only laundering money obtained in the past.

The trading profits are fake. Most analysts understand this now. The more “profit” they report from proprietary trading the more they are relying on laundering money illegally obtained in the mortgage meltdown. Analysts understand therefore that an increase of “profits” derived from proprietary trading really means that (1) the rest of the operations are not doing well and (2) the bank is becoming increasingly vulnerable to major lawsuits by government and private interests.

That is the reason for a drop in share price every time they report an increase in trading profits. On Wall Street everyone is an insider. They all know that the income from proprietary “trading” is fictitious and the assets reported on the balance sheets are fictitious. As this information leaks out the pressure put on regulators and law enforcement will become intense. The old deals will be shattered and a new round of criminal and civil actions will begin. Every time another homeowner scores a victory the skepticism about the profits and assets of these banks increases.

see http://www.businessinsider.com/deutsche-bank-is-in-trouble-2014-11

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