Sunday, October 2, 2016

Questions on Deutsche Bank affect the european economy – Jornal de Angola

they closed Friday on a high at the Frankfurt Stock exchange (+6,39 percent, 11,57 eur), after a source has told the AFP that the fine imposed by the United States in a case related to the crisis of the "subprimes" was to be finally of 5.4 billion dollars, less than half of the 14 billion initially estimated.
During the day, the title came the fall about 8 percent, down for the first time below ten euros, a volatility stimulated by doubts about its soundness.
"Deutsche Bank is the fourth bank is more systemic in the world. When one begins to have doubt about an entity of this size, it is normal that affects the whole world", told AFP the director of Research of the Axiom AI, Jérôme Legras.
The banks systemic are considered to be key in the global financial system and, therefore, too big to break – the so-called institutions "Too Big to Fail".
There are several days, the eyes are turned to the fine of 14 billion announced by the american Justice and that now may be reduced.
in Addition to this threat, many analysts are preoccupied with their problems of profitability and compare the situation with that of the Lehman Brothers, the bank whose break has sparked, in 2008, the global financial crisis.
On Wednesday of last week, the German Finance minister had to deny that the government is preparing a rescue plan. This Friday (30), however, the action resumed briefly, given that several investment funds have reduced their participation in the entity.
in A letter to employees, president John Cryan criticized "some forces in the market, who want to undermine confidence" in the institution.
Already the president of the Eurogroup, Jeroen Dijsselbloem, said that "the company has to solve its own problems" without the help of the State, although it has recognized that the fine is "too high".

interest Rate low

The crisis this Friday dragged the rest of the sector. Large european banks closed down, with its action in low.
in the case of Commerzbank, the second largest German bank, whose shares derraparam almost six percent. On Thursday (29), the institution announced a broad restructuring plan that includes the removal than 9,600 jobs (one in five), and the suspension of dividends to shareholders.
its president, Martin Zielke, acknowledged on Friday that will "live with some volatility". Investors fear, in particular, the way in which european banks can move, with historically low interest rates that cut your profit margin.
in addition, to stimulate loans to companies and individuals, the central banks charge interest of entities who deposit money in their vaults.
This forces them to change their business model, looking for new sources of revenue, new services, and acting on continents that until now was not a priority, such as Asia.
Since the crisis of 2007-2008, banks need to comply with the new standards, to prevent breakage, among them the increase of their reserves. However, the measures are not well received, since banks fear that they will lose profitability.
"The case of Deutsche Bank demonstrates the contrary, because we have all these regulatory requirements, but restricted, that allow you to experience this kind of situation," said economist Nicolas Véron, Peterson Institute, Washington.
Joel Kruger, an analyst for the LMAX Exchange, is less optimistic, and ensures that even if the "panic" is not the same to that of the Lehman Brothers in 2008, governments and central banks do not have the same instruments.
"it Is a panorama, terrifying that will put to the test the determination of the markets in the coming months," he warned.

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