‘[The] share price is low but that is not what is worrying us and that is not what we are looking at. What is really important to us is our credit story which is very strong, it is fundamentally strong.’ – Jorg Eigendorf, head of communications at DB on CNBC (sourced from Zerohedge)
‘The credit story is strong?’ To begin with, I’m not sure what the head of communications is doing on bubblevision talking about ‘credit.’ If he understood the meaning of the words he was regurgitating from script, he would not have made that statement if he were under oath.
From a German politician (as reported in Zerohedge): ‘you can’t compare Deutsche Bank with Lehman. The bank is in a position to get out of this situation on its own.’ As the adage goes: A rumor is confirmed as fact once that rumor is denied three times by politicians…
DB stock is down over 7% today. It’s likely the primary reason that the SPX is down 13 points as I write this (that plus the dismal new home sales report). DB stock has hit another all-time low. DB has lost 51% of its market value this year. The BKX bank stock index is down only 4% this year. The relative performance isn’t just a red flag, it’s a ‘code red’ five-alarm danger signal.
This post was published at Investment Research Dynamics on September 26, 2016.