Deutsche Bank has taken a big hit on the stock market in recent years. It share costs less than €8 at the time of writing, making the market value only 25% of the book value. The bank is therefore at the bottom of the list of lowest-valued banks, together with an Italian problem bank such as Monte dei Paschi di Siena. As a result, investors have little confidence that Deutsche Bank's assets are actually worth what they are on the balance sheet for.
The malaise at Deutsche Bank has been going on for years now and there is no prospect of an improvement in the situation for the time being. Last summer, the bank even put €50 billion worth of bad loans into a bath bench. If the bank has to write off these loans, there is not much left of the equity. Is Germany's largest bank in fact already technically bankrupt? And who will foot the bill if this bank really gets into trouble? Investigative journalist Arno Wellens delved into the matter and discusses this video at Café Weltschmerz where he left off at the end of last year.
You can watch the full video below. Click here for the first part on Deutsche Bank.
This contribution was made from Geotrendlines