HISTORY RHYMES – What If Deutsche Bank Becomes Lehman Brothers…. And Kind Of Defaults?

Markets dont care until they care. That’s why it’s called “panic”

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Deutsche Bank AG will face another challenge this month when the Federal Reserve publishes the results of a “stress test” on the bulk of its U.S. operations for the first time.

Germany’s largest lender is already facing challenges with U.S. bank regulators and in financial markets, with its stock price falling to historic lows on Thursday. Standard & Poor’s downgraded its credit rating to BBB+ from A- on Friday.

The downgrade came after reports earlier in the week that the Fed designated one of Deutsche Bank’s U.S. businesses as “troubled” last year, something a person with knowledge of the matter confirmed to Reuters on Friday.

The Fed’s stress test results, expected to be released sometime this month, will be the next big public barometer of Deutsche Bank’s financial strength.

Deutsche Bank Is Big Enough A Collapse Could Bring Down The Economy:Wolf Richter

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