It is my understanding that Deutsche Bank (DB) is too important a globally interconnected bank that poses such an acute systemic risk that TPTB will not let it fail. I am not a financial expert, but my “un-educated” guess is that the central banks (CBs), now as the Buyers-of-Last-Resort, will somehow buy/subsume those bad DB “assets” either directly or indirectly. Being completely jaded as to the blatant, pervasive and ongoing manipulation of the financial “markets”, I would not be surprised if insolvent DB’s latest strategy has been already known and agreed up by DB, Central Banks and…TPTB.
Who else in their right mind would buy those toxic DB assets–including tranches of derivatives with unknown but potentially massive, exponential risk/debt to the downside???
Given this Barzarro world where up is down, and bad news = higher stock indices, one might expect that DB shares would actually increase due to this latest (smoke and mirrors) plan. You can bet that some DB high-level execs are poised to cash-in/cash-out on their options, while investors and 18,000 DB employees scramble to salvage what they can from this financial debacle.
DB’s and Central Banks’ strategy will only delay the inevitable market correction/collapse and world-wide financial contagion (with social uprising) to follow.