Bank Reserves Appendix; One Additional Case Study

Early last month, Deutsche Bank replaced one CEO pledged to paring back the bank’s ailing franchise with another committed to doing the same thing only more quickly. As I wrote at the time, “Cryan isn’t being ousted because he was wrong, but because he was right.” In comes Christian Sewing whose plans are starting to…



Early in the morning on October 7, 2016, during Asian trading the British pound experienced a flash crash. Driven down 6.1% in a matter of two minutes, it left the rest of the markets stunned. The usual whispers of a “fat finger” abounded, as did the recognition of how unabated computer traded sell orders were…

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The Big German Zombie

It’s kind of a cheap shot to go back and rehash corporate statements from way back in the past. Still, when the topic is banking and why the monetary system refuses more than intermittent and minor progress, it’s worth the revisit. What’s different now than before 2008, really August 2007, is far more than regulation….


What Pain DB

Deutsche Bank’s CEO John Cryan warned that the bank’s quarterly results for Q3 would be no better than those produced in the two disappointing quarters prior. He has been proved by the bank’s reported results to have been optimistic. Trading revenue fell an alarming 30% year-over-year, with DB joining the rest of Wall Street in…

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It’s Not Easy To See

There are supposedly jobs that Americans won’t do, and now there are, apparently, jobs that British won’t do. In the latter case, according to the UK’s Minister of State and Commonwealth, Sir Alan Duncan, it is the Europeans who were blamed for taking work from native English. The result was, in his view, Brexit. Duncan…


Where Do We Begin? Define What It Means To Be A Bank

It may sound overly basic, but the times being what they are there is a very well deserved need to be elementary about certain things again. That starts with banks and really defining what is and is not one. When money was money, banking was a very simple procedure, though not quite so stylized and…


The Math Thickens

It has been my contention for some long while that one of the biggest parts of this “rising dollar”, that is, again, nothing more than a euphemism for the various ways in which there is a “dollar” shortage, is balance sheet math. The problem in as simple terms as perhaps possible is that positions were…


More Of The Same From Frankfurt

It is quite interesting that two pieces of likely interconnected news hit today about everyone’s favorite German bank. First, Reuters reported rumors that C-suite officials from Deutsche Bank alerted their HR to perhaps expect double the job cuts from what was previously announced. Last October, the bank claimed that it would need to shed about…


Suspicions About Bank Math: A Systemic Story Told Through Deutsche

As perhaps another in a very long line of indications as to what is unholy and wrong about today in banking and finance, over the weekend it was reported in the Financial Times that Deutsche Bank had received an improper accommodation on its “stress test.” In what can only be described as a clear example…


Zeroing In On ‘Something’; Another Bank Anecdote

If we objectively analyze what is taking place with global banks, it is that they are facing new constraints due to volatility and conditions across different capacities that are much different than modeled expectations. This was supposed to be the Hollywood ending but instead there is only “global turmoil.” This difference isn’t new; it has…