But what happens when – and surely it's no longer if – but when Deutsche, Germany's biggest and only truly global bank has to be rescued? What will the fallout from that be?
I am sure the German authorities will claim its not a rescue its a merger. Yeah right! It's a rescue.Deutsche's shares have fallen 48% in just the last 12 months – the same time the management said they were going to have the bank turned around. The bank's shares are now worth no more than they were nearly 40 years ago. Which is not such good news.
But there's worse. While, and perhaps in part because(?) Deutsche's share price has been in free-fall, Deutsche has been money laundering around the world. That corruption is now beginning to catch up with the bottom line that it had been pumping cash into for so long. Deutsche is being investigated after the Panama papers revealed its roll in industrial scale tax avoidance and money laundering. No sooner had the ink dried on that headline when the revelations about Deutsche's central role in laundering money through Danske bank drew yet more investigators to its HQ like flies to a fresh and steaming turd.