Deutsch Bank in Trouble Again

4 Nov

Livinglies's Weblog

The vulnerability of the banks is starting to bleed through the shadowy curtains of “securitization fail.” (Adam Levitin’s term for false securitization). Despite trillions given to the banks in faked sales of worthless mortgage backed securities (purchases by Federal reserve at 100 cents on the dollar), analysts correctly perceive this as a growing cancer on the balance sheets and financial statement of the big players on Wall Street.

The trading profits are fake. Most analysts understand this now. The more “profit” they report from proprietary trading the more they are relying on laundering money illegally obtained in the mortgage meltdown. Analysts understand therefore that an increase of “profits” derived from proprietary trading really means that (1) the rest of the operations are not doing well and (2) the bank is becoming increasingly vulnerable to major lawsuits by government and private interests. That is the reason for a drop in share…

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