The End of Deutsche Bank? - what happened & what’s next?

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Deutsche Bank is the 22nd largest financial institution in the world. It’s half the size of Bank of America and 7 times bigger than silicon valley bank
So after demand for insurance against the bank suddenly sky-rocketed on friday, people are rightly concerned about whether Deutsche will be the next bank to collapse
Especially because it would reflect the fall of a systemically important bank the effects of which would be felt around the world.
So today, I want to explain what happened with Deutsche bank over the weekend.
Why did their CDSs increase sharply and what it tells us about the likelihood of Deutsche bank failing.
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Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice from Hamish Hodder.
Hamish Hodder is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
Hamish Hodder is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

[@jeremynewell9903]

Banks are great at lining executive's pockets, nothing more.

[@harryviking6347]

I find it incredible that DB hasn't fallen years ago!

[@milesgreen9705]

Your sponsor(Daily Upside) is a good daily bulletin. Subscribed after your recommendation/advert!

[@HamishHodder]

Sign up for The Daily Upside for free ▶︎ bit.ly/3ZvEB3G

[@citationau]

Had a laugh with the comment on Tik Tok and financial help. Thanks for the content Hamish, always straight to the point.

[@Gwenqz]

😅 this reminded me the only good that came out of congress is we clarified tik tok uses wifi

[@firozebukht8207]

Why the American and European banks at the point of collapse.

[@raymondleehawaii]

Great content. Well presented . Thanks for sharing.

[@MaxFromSydney1]

@Hamish, Thank you, mate. You have a great knack of making market analysis digestible for the rest of us. “If you don’t know… then don’t play” - What great advice right now. Everything seems to be pointing towards ongoing volatility with bank share prices, big headwinds reducing bank profitability (and hence share price) in the near term at least, plus bank shareholders being shown that their investments are at significant risk while depositors get looked after. I used to have alot of my money in bank shares until very recently. I sold the vast majority of it because I was smelling alot of “dog shit”, and the smell was / is getting worse. Term deposit rates never smelt so good!

[@vigneshmani2636]

So next short banking stocks

[@LucaVespa99]

Four companies that I just invested in it in the last month…..are bankrupt now. That’s all I got to say.

[@jasonsiu6368]

You do a fair job on presenting the event, keep up👍🏻

[@2NormalHuman]

great video! Subscribed!

[@stevo728822]

Well presented and to the point.

[@BashoStrikes]

Nothing lasts forever and most things last for extremely less time - especially banks and societies.

[@IsaacLHarrison]

especially societies!

[@tg6892]

DB has been a problem child FOREVER.

[@ashleycampbell6825]

Well crafted message leading towards the closing comment by investor Eisman. Banks have been too greedy so more regulation is coming and that will reduce their future profitably. Too much is unknown so avoid investing in Banks presumably until this latest banking crisis is resolved.

[@georgechristoforou991]

Fake profit figure and fake asset figures. Assets based on loans that are about to default are not real assets. Subtract the loan defaults from profit and you have instead massive losses. The US treasury talking about potential US bond defaults is spooking the banks. Deutshe bank holds US treasury bonds.

[@beautifuldream108]

That will be next 10 years ...😅

[@local80g]

I can’t figure out why anyone is still holding stocks. Read about the current Silk Road project. The watch some of Daniella Cambone’s interviews, especially the new one with Frank Giustra.

[@Frugal_Invest]

Exactly. I don't know. I'm out.

[@liberty-matrix]

I'm betting Schwab is next!

[@Shankovich]

What music was this at the start??? (Also awesome video)

[@TheTeaParty320]

It’s time to reinvent banking, but without these banksters taking part in it. In fact, no one who has ever worked in banking should be included in the new banking system.

[@andreasleonard0]

Market is down still, I've been looking up strategies and apparently both bull and bear market condition provides equal avenue to accrue massive gains, and a news article particularly mentioned a 54 year old that made $180k in 5weeks, how do I learn these strategies, my portfolio has been stagnant for months.

[@pierceenglish2971]

Music too loud and takes away from your talking m8

[@eej9488]

Pls stop the dramatic music in your vids

[@PB111627]

Had a laugh at La Garde continuing to raise interest rates and telling us the banks are safe.

[@shauntysonallen]

How can you rip on tiktok finance influences when you are on tiktok providing financial videos? Your videos are great, well done mate. Keep it up!

[@HamishHodder]

😂😂

[@kalolawahine9182]

It’s All Soooo Tangled & Very, very Confusing 🤯

[@georgechristoforou991]

This is just a skim over the top news about Deutsche Bank. Try investigating Deutsche bank's assets. Are they exposed to the US commercial mortgage market. Are they exposed to US bonds. Are they exposed to German commercial loans and are the firms that they have loaned to in deep economic problems? A good analysis wouldn't just look at the symptoms, the way you have, but would involve looking at the root cause of Deutsche bank's financial illness.

[@marjorienavarro6337]

Stuff around with principle...you'll pay big time 🤦‍♀️

[@gargoyle7863]

Swiss government didn't violate the hierarchy between bonds and shares: AT1 is a stupid "bond" which converts coverts into equity before shareholders are liable. Whoever bought AT1 should have read the fine print.

[@willdehne1]

I am German living in the USA therefore my attention to DW. That stock went from over $100 before the financial crisis to now around $10. I am not aware of a reason to invest in that bank. DW invested into very risky business. SWAPS, COD and money laundering. Perhaps they cleaned up their act but that also means less opportunity for a while until their reputation has recovered. Which may be never.

[@juhantoon6524]

All these Bonds (AT1, Coco etc etc) are created by owners of banks to bypass prudent banking law to create additional fund/capital to finance more business activities to generate more profit. Why? The owners or shareholders are not willing or able to pump in the necessary capital themselves to meet the statutory guidelines to do more business. So they through all the financial experts came out with way to circumvent the law to package the existing assets of the bank (loans or lending) to sell to investors with attractive yields to raise the funds to do more business. The rest is history.

[@iliketacos6067]

2:50 my buddy worked for a shady lender as a contractor. There was zero federal oversight. He said the money was easy but he knew it was wrong because everyone got greenlighted no matter what.

[@Bordeaux1979]

Didn’t Mark Baum short them a few years ago

[@jieyang-v6f]

Hello blogger, following your works for a long time, I just know a very good project. Can I talk to you for a second?

[@firozebukht8207]

Lacking in annual capitalization from the central bank to a profitable volume investment.

[@firozebukht8207]

Very calculative recycling of capitalization 1- central bank recovery 2- squeezing capital from public and the markets.

[@autumneagle]

Suggestion- banks identified as"too big to fail" should be commanded to split.

[@firozebukht8207]

These are all regulated through the budget allocations actually govt accumulate cash into the system.

[@Brandon-xp1ob]

What a house of cards. Never changes

[@savednorwegian]

Its not down 90% but its down enough - 20-30% ish last weeks

[@eheng10]

CDS = put option?

[@Rainy_Day12234]

How many banks have quants from Banker’s Trust destroyed.

[@crazeewangeh6212]

Big short clip right on cue, altho I prefer the montage to the song with the lyrics "shake ya money maker"

[@crazeewangeh6212]

Is there any way we can do 200 million?

[@jigar1p]

“Catched”?

[@alexkalish8288]

DB has been a zombie bank for over a decade - read Jim Marss 2010 book, the trillion dollar conspiracy. Its all in there - and you don't scratch the surface.

[@vandydandy2697]

A lot of unrealized losses are driven by short sellers

[@monikadixit9220]

Which movie is dispalyed in between this video?

[@deannahenry8925]

It's called The big short

[@jawadarif5676]

Somthing for you next video As more country are looking to drop the dollor for international trade, what does this mean for the USD in the international market and for the USA economy, exame russian and china looking to uses the yen Association of Southeast Asian Nations considers dropping the US dollar, euro, yen, and British pound for local currency financial settlements, Kenya also looking at using local currency

[@oldtechie6834]

It is awful listening to sentences without gaps.

[@robertl5298]

Hamish, the music is far too loud and annoying.

[@domMeaney-tn3fp]

Deutsche has gone from 240 billion long term debt to short term debt in Dec 2022 so much more risk unable refinance. Note also increase in intangibles is partly how Deutsche made a profit last year. Also not decrease lending book size of Deutsche from 1.5 trillion to 1.33 trillion implies costs are increasing, never good when barely profitable. All in all German government will need to save Deutsche bank.

[@Noobs4020]

Dude you need a break after your sentences the audio is horrible. If you use an Audio software just use a slight fade out and fade in. Friendly advice

[@filipmazur4763]

Cramer said its fine means sell now he is the true benchmark

[@eco_guardian]

Should I convert my variable rate mortgage into a fixed rate? Opinions would be appreciated.

[@ELee-fr4tr]

unfortunately you should have done this at least 8 months ago.

[@eco_guardian]

@@ELee-fr4tr Thanks brainyack, I mean now.

[@Nernst96]

The downfall of SVB has had a significant impact on the global financial markets, leading investors to hastily sell off bank stocks and revise their interest rate projections. As an investor with a portfolio of $350k, I am now at a critical juncture, questioning the wisdom of holding onto depreciating stocks. In this bearish market, I am seeking advice on the best strategies to maximize my returns.

[@cryptochat313]

Remind me, how many billions did they loan to #DONTHECON?

[@saladien9987]

Deutsche is far bigger then 22 place if you consider its options risk ;)

[@TheTeaParty320]

The German again! It’s always the Krauts.

[@tancolvis5240]

Bank run ASAP not to wait be it in USA or EU banking they all not safe to deposit as before 2008 all property junk bonds hv rolled till 2023 it be as 3-4 time more bigger then in 2008 it will collapes

[@TheTeaParty320]

My level of care for these bankers = 0. That’s right, a big fat ZERO!

[@bensch7794]

You mean Bankters?

[@TheTeaParty320]

@@bensch7794 Yes.

[@FreddieFreethinking]

The Monetary Money System Is Going To Default Along With The Banking System.

[@AimeeKisaboyun]

All ponsi scams fail.

[@zoltankiss1130]

Please remove Your ads, this is ridicolous.

[@henryterranauta9100]

You’re a daily news reader and compiler

[@kitkarson4226]

It did not drop 90%. stop the clickbait plz.

[@np2917]

Credit Suisse, Dutch Bank, S V Bank move to Ukraine 😂😂😂

[@kalolawahine9182]

At Least You Know krapper is a joke‼️

[@ramonstam9049]

WEF

[@rrickarr]

Where´s Angela Merkel when you need her?

[@ididsubmititalreadys7733]

China

[@beautifuldream108]

Should we worry about more bank collapse in USA? 😂😂😂😂😂😂

[@merridius2006]

1:00 can you just stop being such a beggar? JEEZ

[@ViceCoin]

Russian banks are safe, due to sanctions.

[@dickritchie2596]

How do Australian people see a word spelled HOME and see HOIM? 😅

[@cccynova]

😂 I've always wondered the same thing. 😂

[@mrboobiesrider9212]

Finally 😂😂😂

[@Ontariostacker]

Great info buddy. You got the sub 🇨🇦🇨🇦👍🏻👍🏻

[@Gwenqz]

Awesome video. Your videos are always so clear and easy to understand.

[@ShrewdCapital]

Oh hell no not the end of Deutsche Bank