Will Deutsche Bank be the Next Too Big To Fail to Fail?
Bloomberg published this about Deutschebank, a so-called "Too Big To Fail" bank. What are they trying to hide?
...which covers all bases. Then again, what else could they say?
Maybe this is the better way to look at what Deutsche Bank has done:
Deutsche Bank AG (DBK), perennially among the top three in global credit markets, made billions of dollars of loans to banks worldwide since 2008 and accounted for them in a way that obscured their continuing risk to investors.There's always a reason behind people or institutions who hide something. A bank spokesperson stated that the bank follows accounting rules:
Germany’s largest bank managed to lend to firms from Brazil to Italy while making the transactions disappear from its balance sheet, even though it still is owed the money, according to four people with knowledge of the practice and internal documents provided to Bloomberg News.
“meticulously, conservatively and taking into account their intended spirit” and started reporting “these positions on a gross basis for even greater transparency.”
...which covers all bases. Then again, what else could they say?
Maybe this is the better way to look at what Deutsche Bank has done:
“Investors are relying on the financial statements for an unbiased view of the risk of the bank, and that view has been skewed,” said Selling, one of three accountants who examined deal documents at the request of Bloomberg News. “It makes their balance sheet look less risky than it really is.”More...
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