TRUE STATE OF DB ,DERIVATIVES EXPOSURE BEHIND THE SCENES -FROM SOMEONE IN THE KNOW
If the total db book is only 50B of derivatives ,then please explain to me why 513 billion of db derivatives are on the open market waiting for buyers ?????
as announced by DB themselves several weeks ago !!!!!!!!!!!!!
that would be my reply to them the data was and is available online if you simply read it.
the 513 billion attempted sell off was to dump the first part of their holdings and see if they could "right the ship internally" however as "banking fate would have it " (tongue in cheek statement) no other banks or buyers or investors domestic or foreign any place on the planet wanted any part of DB's book of debt not even the Swiss banking society was willing to touch the book for a number of reasons.
(ps the swiss bond reinsurance companies have also canceled the bond insurance on all DB derivative bonds due to failure to comply with the terms and conditions of the insurance policies ,this means that the is no backstop for the entire DB debt load except for the following:
1> any credit swaps which had been arranged and executed before the crunch.
2> if the housing market (mortgages) manage to NOT IMPLODE, then the cash principal available ( money down and money from the payment streams) is all they have to offer anyone. When DB crunches or when housing crunch happens that block of funds will vanish as there is no longer a manager or trustee for the derivatives.
now as to the derivatives beyond the 513 B they were trying to unload, they openly admitted that they had moved those books offshore to avoid entanglements with us regulators ,but now that whole thing has backfired
it falls into the category of global fraud, and global greed and to be blunt it is simply the tip of the banking iceberg which will soon come to light.
the banks in the usa and europe and china and india have printed way more money than the total of all the national debts !!!!!!!!!!!!!!
in fact the following facts are true:
1> estonia and iceland are the only countries with positive cash flow
2> russia is next and while not perfect has held the central bankers in check because putin has not bowed to them at all ever
I realize that is a rather longish answer to your seemingly simple question but there you have it.
the exposure has just begun !!!!
Nov 5, 2019