The IMF never shies away from making controversial statements, albeit their most recent one may cause a lot of debate. According to the financial superpower, Deutsche Bank is the biggest threat to our global economic ecosystem. It is not the first time allegations like these take place, as the position of Deutsche Bank has been questioned for the past three years.
by JP Buntinx
That seems to be the consensus among IMF members, at last. Deutsche Bank is the institution with the largest derivative exposure, totaling over 55 trillion Euro. Despite that “portfolio”, the Deutsche Bank failed the Federal Reserve’s stress test for the second year in succession. If a financial crisis were to happen, and it only seems a matter of time at this point, DB would send the world economy into a downward spiral without end.
The IMF is clear in the statement, as they feel the bank is the “most significant net contributor to systemic risks.” To make matters even worse, Deutsche Bank stocks were sent crashing two days ago, continuing their overall downward trend throughout 2016. It doesn’t take a degree in finance to realize things aren’t looking very good.