Deutsche Bank is in crisis mode, and this could cause serious problems for the global financial system, says world-renowned billionaire investor.
Jim Rogers, chairman of Rogers Holdings and bestselling author of “Hot Commodities,” told Russia Today that the fall of Deutsche Bank could crash the financial system. This comes as the United States Department of Justice is seeking $14 billion after alleging the bank missold mortgage-backed securities.
“The main reason is that the US government is deep in debt. They’ve got a gigantic deficit – they are desperate for money. They’ll try to get it anywhere they can. I can’t imagine that Deutsche Bank should be liable for $14 billion,” Rogers said.
“Either Deutsche Bank goes bankrupt, which is going bring down the entire world financial system, or they are going to come up to some kind of compromise at a lower number. If Deutsche Bank does have to pay $14 billion – you should be very worried anyway, but especially if they have to pay $14 billion.”
Year-to-date, Deutsche Bank shares are down 43 percent at around $13.62.
Europe’s banking system, particularly in countries like Italy, is on the brink of collapse. The banks in Europe have not been recovering since the global economic collapse. A chart from Bloomberg highlights the fact that European banks are still on the cusp of crumbling (SEE: 5 random things for Friday (NYC’s Wi-Fi porn problem, European banks treading water, H.L. Mencken quotes)).
Leave a Comment