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Deutsche Bank update

Jun 02, 2019



After a $350 billion U.S. bailout, Germany’s Deutsche Bank still has $49 Trillion in derivatives

On July 21, 2011, when the GAO released its audit of the Federal Reserve’s secret $16.1 trillion in bank loans during the financial crisis, a foreign bank ranked number 9 on the list of the largest borrowers. The loans went not just to the largest banks on Wall Street but to foreign derivative counterparties to the Wall Street banks. The foreign bank that ranked 9 on the list of the largest borrowers was Germany’s largest bank, Deutsche Bank, which took $354 billion in revolving loans from the U.S. Federal Reserve….

In 2011 when the GAO released the list of the banks that had received the $16.1 trillion in secret loans from the Fed during the financial crisis, two other foreign banks ranked in the top ten of those receiving this strange largesse from the U.S. central bank: the U.K. mega bank, Barclays, ranked number 5 with $868 billion in cumulative borrowings and the Royal Bank of Scotland Group PLC, also of the U.K., ranked number 8 with $541 billion in revolving loans from the Fed. (See chart below.)

Notice that this $16.1 trillion loan was “secret.” Of course, I read about it back then, so it was not a secret to me. At the time, this figure was more than the US federal debt. What did all that money do? Supposedly it was to keep the European banks solvent, especially Deutsche Bank. How successful was that? Was $350 billion just a stop-gap measure?


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Category: In The News
Blog Author: Dr. Stephen Jones