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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 422.21+1.9%Jan 12 4:00 PM EST

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To: elmatador who wrote (122386)10/1/2016 3:03:33 PM
From: Elroy Jetson  Read Replies (1) of 219286
 
Deutsche Bank shareholders will be greatly diluted like the shareholders of UBS when they raised new capital, or completely wiped-out. The only question is whether Deutsche bank bondholders will take a big haircut as well.

The new Deutsche Bank will most likely continue trading under their existing name as it's unlikely a bank this large will be acquired by another bank.

This is exactly what happened to failed banks in England and what should have happened to failed American banks - but for the fact that George W Bush didn't want his supporters and friends Bunny and Scooter to lose their trust funds which are typically invested in bank preferred shares and bank bonds.

There is zero chance of a bail-out from the German government for Deutsche for a large number of reasons. First Merkel is opposed in principle. Second the shareholders and debt holders of Deutsche are primarily not German, so there is little interest in German taxpayers bailing out investors of the world.
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