Will The German Government Let The Lights Go Out on Deutsche Bank?
- Will The German Government Let The Lights Go Out on Deutsche Bank?
by The last mass extinction came 65m years ago, when the dinosaurs were wiped off the face of the earth. Financiers will not thank him for the comparison, but German central banker Andreas Dombret has compared the comet-smash and subsequent death of the giant reptiles to the current state of the banking industry.
“Some banks are already extinct and others are under great pressure to conform, and a lesson from the era of the dinosaurs is still true today: size is not a goal in itself, neither is the size of a single bank a guarantee of its survival,” he told a conference in Vienna.
Dombret does not expect the total destruction of the industry: “Of course we hope that neither the impact of the recent financial crisis will be felt for the next five million years, nor do we expect an impact that brings the whole banking system to the brink.”
What a relief. One would imagine the light-hearted comments went down like a bucket of cold T-Rex vomit in Frankfurt, however: the current threatening meteorite takes the form of a multi-billion dollar fine from the US Department of Justice (DoJ) hurtling straight towards Deutsche Bank.
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