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To: Elroy Jetson who wrote (22073)9/7/2007 9:04:11 AM
From: Metacomet  Read Replies (4) | Respond to of 220044
 
You really are an arrogant ass...



To: Elroy Jetson who wrote (22073)9/7/2007 11:37:02 AM
From: RJA_  Read Replies (1) | Respond to of 220044
 
>>Banks like Deutche Bank have massive exposure to these crap investments in their non-bank subsidiaries. This will badly affect their shareholders, but does not affect their bank depositors in the slightest.

Do you understand the difference between a bank deposit and an investment in bank stocks? No? I thought not.

Elroy -- If a banks capital is sufficiently impaired, it can effect depositors.

In Germany, is there an equivalent institution to the FDIC?

If not, you are relying on the good will of the CB and the government to bail you out if things get sufficiently bad (say capital drops below legally mandated levels, or goes negative).

If things get bad enough, depositors can be effected.

Are the non bank subsidiaries sufficiently insulated from the banks capital so there is no effect on the banks capital? If so, no problem.