As far as I am concerned, DB is the prime candidate to break and drag down the European banking system. Sure the Italian banks are in far worse shape, but they can be kept limping along with a relatively few billions through the back door.
DB? That’s another beast. They are the perennial bag-holders for whatever crap Wall Street has dreamed up and they never seem to learn.
Last time it was bucket loads of CDS and CDO paper.
This time it’s probably volatility derivatives and credit swaps on junk debt.
At any rate, a new yearly low is not to be overlooked. DB has gone through 4 or 5 rescue cycles but I doubt they can be fixed so easily this time. Not with all eyes on the central banks.
However it was super fishy for the ECB to recently announce an expansion of their corporate debt purchase program…so keep on the lookout for the ECB to load up on freshly minted DB debt, and/or buy crappy corp debt off of DB’s books in the nick of time.