JPMorgan, Goldman Said to Discuss Buying Deutsche Bank Swaps
~Lender looking to complete sale of $1.1 trillion swaps book
~Deutsche Bank has sold about two-thirds of book since 2015
Deutsche Bank AG, the lender exiting some trading operations, is in talks with JPMorgan Chase & Co., Goldman Sachs Group Inc. and Citigroup Inc. to sell the last batches of about 1 trillion euros ($1.1 trillion) in complex financial instruments, people with knowledge of the matter said.
Deutsche Bank, based in Frankfurt, has sold about two-thirds of the portfolio of uncleared, mostly single-name credit default swaps since last year and wants to sell the rest within the next few months, according to the people, who asked not to be identified as the talks are private. The three U.S. banks have already purchased some of the instruments, the people said.
Eventually it will….I’m pretty sure the derivatives meltdown will take down every paper currency on earth and major corporations asset values creating urgency, forcing the quick transition into a one world digital currency
Bix Weir Reports Rumors of the Deutsche Bank Derivative Implosion Confirmed
Knock, Knock… Who’s There ? CHAOS!!!
and it begins now…
This week begins the 2nd half of March and the lead in to massive 1st quarter bank write-downs. The Rumors of the Deutsche Bank Derivative Implosion have been confirmed by the pending sale of $1.1 TRILLION in derivatives to the “3 Horsemen” of the USA derivative implosion: JP Morgan, Goldman Sachs and Citigroup.
JP Morgan, Goldman Said to Discuss Buying Deutsche Bank Swaps
“Deutsche Bank AG, the lender exiting some trading operations, is in talks with JPMorgan Chase & Co., Goldman Sachs Group Inc. and Citigroup Inc. to sell the last batches of about 1 trillion euros ($1.1 trillion) in complex financial instruments, people with knowledge of the matter said.”
Did you notice how Citigroup is a bidder but was left out of the title of the Bloomberg article?
That’s because this deal will put the American TAXPAYER on the hook for another $1.1 Trillion in toxic derivatives!
All of which will have to be paid out BEFORE the FDIC pays out any other insured deposits including YOUR checking and savings accounts!
Corporate use of Derivatives up 50% post crisis
Use of derivatives is growing in anticipation of a hike in global interest rates. The increased demand for hedging instruments is placing a strain on dealers, which face rising derivatives trading costs as a result of recent regulation.
A new report, Corporate Derivatives Use Continues to Grow — Dealers Say Not So Fast, released by Greenwich Associates examines the results of a study of nearly 400 corporate treasurers globally and finds that corporate use of derivatives has climbed since the financial crisis with the annual interest-rate derivatives trading volume of the typical big corporate user growing to $3 billion in 2014 from $2 billion in 2006. The vast majority of these users—87% of study respondents—say new regulations have had no impact on their use of derivatives.
The story is much different for the dealers which companies rely on to execute these trades. While Dodd-Frank exempted corporate “end users” from its trading and clearing mandates, dealers executing bilateral trades with these clients are subject to much higher capital costs than those imposed on cleared trades for other clients. “Banks will be, and in some cases already are, passing these new costs down to the client,” says Kevin McPartland, Head of Market Structure and Technology Research at Greenwich Associates.
Over half the corporations participating in the study are paying credit charges to their dealer as part of the initial transaction to offset the dealer’s cost of capital under Basel III.
Deutsche Bank Derivatives ready for failure says Jim WIllie
An article from silver doctors from Feb 14th speaks of Deutsche bank and its potential to fail and bring down many other banks and the Eurozone monetary system at the same time. If you don’t know what this means, liken it to Lehman brothers bank failure which kicked off the 2008 crash. Its the same idea but MUCH larger.