Deutsche Bank Hits New Low As Global Systemic Risk Rages And US Yield Curve Flattens To New Low (Financial Inferno!)

Deutsche Bank, my former employer, has hit a new log in terms of its stock price, nearing $10 per share. Brexit, brewing trade skirmishes and European fragility is taking a toll on the European Global systemically important banks (GSIBs).

While Deutsche Bank, Europe’s largest bank, fell to near $10 per share, it is not “the Lone Ranger” in terms of declining stock price. Germany’s other mega-bank, Commerzbank, is down to €8.1 per share.  Italian giant Unicredit and France’s Credit Agricole are suffering as well.

gsibs

Now, look at these 4 super banks since 2006. In  this comparison, Deutsche Banks looks relatively “good” with Commerzbank and Unicredit as the big losers.  The truth is that they all have suffered greatly since the financial crisis.

gsibs2007.png

But my choice for the worst bank in Europe is …. Banca Monte Dei Paschi Siena that fell from over €9,000 per share in May 2007 to €2.51 per share today.

bancamonte

There are many other European banks and this is just a small sample.

Oh and the US Treasury 10Y-2Y slope just flattened to a new post-2007 low.

yc102newl0w

But the GSIB lion is raging like a financial inferno.

 

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