Friday, September 16, 2016

Dindus in the DoJ

Apple was hit by a big fine by the EU, requiring the payment of $14 billion in unpaid taxes. The Obama Administration's Department of Justice decided to hit a European company back in retaliation. This isn't a big deal on the surface, the government will sometimes go to bat for large companies. However, the dindus in the DoJ do not understand economics or financial markets because they chose to hit the single weakest link in the global financial markets: Deutsche Bank! And DB told the DoJ to shove it:
Making matters hostile, in a statement on Friday morning, the German bank's CEO rejected the opening settlement claim and said that he “has no intent to settle these potential civil claims anywhere near the number cited", adding that “the negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts."

Maybe, but the market is not so sure, and after opening for trading minutes ago, Deutsche Bank stock tanked a whopping 8% on news of the DOJ's $14 billion proposed settlement, once again approaching its all time lows.
Each time DB breaks to new lows, global financial markets slide. Whether this current slide in DB move causes another drop remains to be seen, but this is undoubtedly the single worst company for the DoJ to target. A slide in financial markets right now will shift voters in the direction of Trump.

Update: here's DB bonds plummeting.
DB's counterparties:
The DoJ shot the Cathedral right in the gut. If it misses everything important they got lucky.

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