July 2016: Deutsche Bank faltering in wake of $66 billion liquidity ‘tap’ from Fed

The U.S. Federal Reserve transfused Wall Street’s financial sector with hundreds of billions of dollars in liquidity through its ‘secret liquidity lifelines.’ 

Even foreign banking interests, with U.S. subsidiaries, enjoyed massive liquidity infusions to help them deal with their faltering financial conditions and debt burdens. And a hefty $66 billion of that transfusion went to Deutsche Bank.

Excerpts fromBloomberg  Nov 28, 2011:                                                         Deutsche Bank AG, Germany’s biggest bank, navigated the financial crisis without capital injections from the German government. The Frankfurt-based bank, which in 2008 reported its first annual loss since World War II, wasn’t so shy about getting liquidity in secret from the U.S. Federal Reserve. The lender tapped the Fed for $66 billion on Nov. 6, 2008 — $28.2 billion from the Term Securities Lending Facility, $21.8 billion from single-tranche open market operations and $16 billion from the Term Auction Facility. John Gallagher, a Deutsche Bank spokesman, declined to say whether the bank took emergency loans during the crisis from other central banks, such as Germany’s Bundesbank.”                                                                                                                    Peak amount of debt held on 11-6-2008:  $66B                                     ……………………………………    

Fast forward eight years, and how did that $66 billion liquidity ‘tap’ work out?  Evidently, not so well. S&P just cut Deutsche Bank’s Outlook to “negative.”

Deutsche Bank Outlook Revised To Negative As Operating Conditions May Challenge Strategy Execution; Ratings Affirmed   – ZeroHedge July 19, 2016

  • We believe the difficult operating environment may challenge Deutsche Bank as it undertakes a material restructuring of its business model and balance sheet.
  • We are revising our outlook on Deutsche Bank to negative from stable.
  • We are affirming our ‘BBB+/A-2’ issuer credit ratings on Deutsche Bank.
  • The negative outlook reflects the possibility that we may lower the long-term issuer credit rating if market conditions challenge Deutsche Bank’s ability to preserve its capital and maintain its franchise while implementing its restructuring plans.

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Global economies are in dire need of liquidity, and Central Banks need to re-target their strategies to provide it.

It is now time for U.S. citizens to be granted the same access to liquidity (their own money)  that was provided to Wall Street’s major banking conglomerates – including foreign banks like Deutsche Bank, during the global financial crisis.

It is time for the Fed to provide U.S. citizens with direct access to liquidity through a Citizens Credit Facility – for citizens to successfully manage their own financial challenges and reduce debt at the family level.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                  The Leviticus 25 Plan 2017 (1584)

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