re: Help me understand what the hell is going on with Deutsche Bank.

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Can someone who is much more educated than I am explain WTF is going on?

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DB did some bad stuff with the MBS and other stuff back in the middle part of the last decade. Other banks did as well. Many of the other banks including all of the US HQ banks have either gone under or taken their medicine and paid their fines. DB has not... they still have a huge potential fine hanging over them.

In addition, DB has has been hurt by the general economic malaise in the Euro Zone.

Those two things have led to a point where they are potentially very undercapitalized. Like most things economic... the threat of bad news can send things tumbling, not necessairly waiting for the bad news to happen. People are starting to get anxious about their overexposure to EU issues and this pending fine, and you can start to see a run. Financially, they are OK today, but just barely... if a run happens, it won't take long for things to get from bad to really bad.

Doc's thread is awesome but it's pretty high level.