re: Deutsche Bank Litigation / Bailout Watch

There were a boatload of articles about Deutsche Bank today, but the most important story was captured by this one: " Deutsche Bank Jumps on Report of $5.4 Billion DOJ Settlement."

As of now, the $5.4 billion appears to still be rumor of a confidential disclosure. However, it's not 100% certain that such an amount would end DB's troubles.

quote:

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Analysts at JPMorgan Chase & Co. wrote in a note to clients earlier this month that a U.S. settlement of $3 billion to $3.5 billion would leave the German lender room to settle other legal issues. Any additional $1 billion in litigation charges would erode capital by 24 basis points. The bank’s common equity Tier 1 ratio stood at 10.8 percent at the end of June.

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An article prior to market open listed " Ten People Who Will Be Key in Deciding Deutsche Bank’s Future", and only one of them was an American.

quote:

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BILL BAER. The U.S. Justice Department’s No. 3 official is calling the shots in the Deutsche Bank talks.

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But you can bet your arse (1) that his decision will be by far the most determinative of Deutsche Bank's immediate outcome, and (2) that he's not doing this in isolation. Heat from the White House, whether directly or indirectly, has got to be influencing him.