Coco Loco! DOJ Slaps Deutsche Bank With $14 BILLION Demand Related To MBS (6% CoCo Bond Yield Spikes To 11.3%)

Jon Economy, Government, Market Commentary, Real Estate

The US Department of Justice just slapped Deutsche Bank with a $14 billion demand related to mortgage-backed security abuses.
The reaction in terms of Deutsche’s stock price was swift.
Of course, there will be negotiations between DOJ and Deutsche Bank to lower the demand amount. Consider the DOJ’s demand the opening salvo.
Then again, how low can Deutsche Bank go? They have declined precipitously since the financial crisis (and The Great Recession) and all the ECB’s negative deposit rates and all the ECB’s asset purchases can’t putt Deutsche Bank together again.

This post was published at Wall Street Examiner on September 16, 2016.