Douche Bank; Poor Credit, No Inovation, Bad Books, Just Trash...
Hello Traders,
Looking here at DB I think we could possibly retest resistance but overall I might be going short once we start downward momentum. I think coming down and testing the 200ma would make sense, but then after that, there are a ton of gaps to fill. Assuming that the macro tops out soon or more Douche Bank weakness gets exposed on the balance sheet or otherwise, those gaps should fill. This is could play out into a longer time frame and go sideways, or it might fail completely. None of this is financial advice.
What Has Gone Wrong According To Forbes?
"Deutsche has been engulfed in a spiral of declining revenue, enduring expenses, a declining credit rating and hence, a rising cost of capital. There has been an issue of having stuck with outdated technology instead of investing in the latest equipment that could have boosted efficiency and a drain of top talent. Finally, there have been a series of fines worth $18 billion since the financial crisis as the bank was found guilty of misconduct.
Of course, the era of low to negative interest rates has made the ability to earn money on margin increasingly difficult and the shares are down about 90% from their 2007 peak." www.forbes.com/sites...the-end-of-ambition/
Anti Money Laundering - www.fool.com/investi...he-bank-and-wha.aspx
"Deutsche Bank's anti-money laundering (AML) issues date back to at least 2017. That January, the bank agreed to pay a $629 million fine to regulators in New York and the United Kingdom for actions that regulators called "highly suggestive of financial crime." The bank's Moscow office helped parties conduct what looked like a transfer of rubles into $10 billion, which then allowed customers to transfer the money out of Russia to banks in Cyprus, Estonia, and Latvia, according to U.K. authorities.
Later in 2017, Deutsche Bank paid another $41 million to the Federal Reserve for "unsafe and unsound" anti-money laundering practices.
Media outlets eventually revealed that the Federal Reserve had secretly designated Deutsche Bank's U.S. division as being in "troubled condition" as early as 2017. That designation, according to The Wall Street Journal, resulted in the bank pulling back on certain trading and lending activities. It also meant the bank had to clear decisions about hiring and firing senior management and reassigning job duties with the Fed.
But Germany's largest bank struggled to stay out of the spotlight. The bank again found itself facing scrutiny in 2018 when an internal review found that it had handled about $150 billion of suspicious transactions carried out by the Danish lender Danske Bank. At the time, U.S. law enforcement agencies were investigating because $230 billion had allegedly flowed through one of its small branches in Estonia.
Reuters reported last October that Deutsche Bank supposedly waited five years after a whistleblower sounded the alarm about suspicious activity at Danske to report the 1 million money transfers it believed were suspect.
All of the issues at the bank spooked investors in 2018, with shares of Deutsche Bank dropping roughly 58% that year. The company's share price remained relatively flat in 2019, a poor performance during a year in which the banking sector performed well.
www.fool.com/investi...he-bank-and-wha.aspx
Looking here at DB I think we could possibly retest resistance but overall I might be going short once we start downward momentum. I think coming down and testing the 200ma would make sense, but then after that, there are a ton of gaps to fill. Assuming that the macro tops out soon or more Douche Bank weakness gets exposed on the balance sheet or otherwise, those gaps should fill. This is could play out into a longer time frame and go sideways, or it might fail completely. None of this is financial advice.
What Has Gone Wrong According To Forbes?
"Deutsche has been engulfed in a spiral of declining revenue, enduring expenses, a declining credit rating and hence, a rising cost of capital. There has been an issue of having stuck with outdated technology instead of investing in the latest equipment that could have boosted efficiency and a drain of top talent. Finally, there have been a series of fines worth $18 billion since the financial crisis as the bank was found guilty of misconduct.
Of course, the era of low to negative interest rates has made the ability to earn money on margin increasingly difficult and the shares are down about 90% from their 2007 peak." www.forbes.com/sites...the-end-of-ambition/
Anti Money Laundering - www.fool.com/investi...he-bank-and-wha.aspx
"Deutsche Bank's anti-money laundering (AML) issues date back to at least 2017. That January, the bank agreed to pay a $629 million fine to regulators in New York and the United Kingdom for actions that regulators called "highly suggestive of financial crime." The bank's Moscow office helped parties conduct what looked like a transfer of rubles into $10 billion, which then allowed customers to transfer the money out of Russia to banks in Cyprus, Estonia, and Latvia, according to U.K. authorities.
Later in 2017, Deutsche Bank paid another $41 million to the Federal Reserve for "unsafe and unsound" anti-money laundering practices.
Media outlets eventually revealed that the Federal Reserve had secretly designated Deutsche Bank's U.S. division as being in "troubled condition" as early as 2017. That designation, according to The Wall Street Journal, resulted in the bank pulling back on certain trading and lending activities. It also meant the bank had to clear decisions about hiring and firing senior management and reassigning job duties with the Fed.
But Germany's largest bank struggled to stay out of the spotlight. The bank again found itself facing scrutiny in 2018 when an internal review found that it had handled about $150 billion of suspicious transactions carried out by the Danish lender Danske Bank. At the time, U.S. law enforcement agencies were investigating because $230 billion had allegedly flowed through one of its small branches in Estonia.
Reuters reported last October that Deutsche Bank supposedly waited five years after a whistleblower sounded the alarm about suspicious activity at Danske to report the 1 million money transfers it believed were suspect.
All of the issues at the bank spooked investors in 2018, with shares of Deutsche Bank dropping roughly 58% that year. The company's share price remained relatively flat in 2019, a poor performance during a year in which the banking sector performed well.
www.fool.com/investi...he-bank-and-wha.aspx