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The Bank Liquidity Crisis: Not Out of The Woods Quite Yet
The banking system seems to be stabilizing, at least for now, but we are concerned that liquidity problems will before long be supplanted by credit problems. In this report we offer thoughts on what to watch, and on energy finance as just one of many, as-yet little examined, potential long-term effects of this crisis. Deutsche Bank isn’t Credit Suisse. Deutsche Bank renewed contagion fears on Friday, as CDS spreads widened sharply and the stock dropped by 10%. On one hand, there are some key differences, starting with the fact that Deutsche Bank is decently profitable, in aggregate as well as in each of its key ... (full story)