- Deutsche Bank Failure Will DESTROY the ENTIRE European Banking System, Top Analyst Says
by JON ROGERS, http://www.express.co.uk/
A SENIOR financial analyst has claimed that if Deutsche Bank is allowed to fail it will collapse the entire European banking system.
Ewen Cameron Watt, a senior director at investment managers Blackrock Investment Institute, told CNBC: “If Deutsche Bank doesn’t make it, forget European banks as a whole.” “I think if you look at Deutsche Bank, what John Cryan (Chief Executive, Deutsche Bank) is doing is trying to lead a very long march back to a sustainable model. “They have got through a lot of harder stuff but there are still many mountains ahead.”
The bleak warning comes after Deutsche Bank, the country’s largest lender, is facing a huge fine of $14billion (£11billion) from the US Department of Justice for the mis-selling of residential mortgage-backed securities in the run-up to the 2008 financial crisis.
Mr Watt added: ”If the bank can remain solvent and the bail-in is not too severe then it is a bit like someone having a heart attack and the defibrillator is put on them and they recover. “They are not well but the proportion between the moment when things are applied to them and their recovery is a big change for the individual.”