Deutsche Curve Inverts As Bundesbank Dismisses State Support Of “Zombie” Banks

Deutsche Bank Sub CDS closed above 500bps for only the second day in its history (and the longer-term CDS curve inverted once again) as a bad day ended worse with Bundesbank member Andreas Dombret exclaimed“state support of banking sector must end,” warning that it only “props up zombie banks.” His pronouncements also pushed politicians to make the hard decisions and “tell banks they need structural reform.”
As Bloomberg details, ‘Political support for the banking sector has to end at last,’ Bundesbank board member Andreas Dombret says in text of speech in Vienna. ‘Unfortunately I’m only seeing this to a limited extent.’

This post was published at Zero Hedge on Sep 27, 2016.