Danielle was a guest today with Kerry Lutz on The Financial Survival Network talking about recent developments in the world economy and markets. You can listen to an audio clip of the segment here.
Further to the discussion, political distancing efforts re Deutsche Bank are in progress, see Political support for ‘dinosaur’ banks must end – Bundesbank’s Dombret:
Andreas Dombret, the Bundesbank board member in charge of supervision, said banks’ deficiencies should be tackled and the sector should be allowed to shrink further.
“Political support for the banking sector must finally come to an end – something that unfortunately I’ve only seen to a limited extent,” he told an audience in Vienna.
“Crucially, we cannot discuss away the structural deficiencies of the banking sector.”
Comparing banks to dinosaurs, Dombret said they should not hope size would save them from extinction due to threats such as a reduction in the overall amount of debt in the economy, competition from financial technology companies, an ageing population and low interest rates.
“A lesson from the era of the dinosaurs is still true today: size is not a goal in itself,” Dombret said. “Neither is the size of a single bank a guarantee for their survival, nor can the size of the sector as a whole protect it from crises.”
Also see more on the pension deficits story here: Dallas Police see exodus as doubts rise on pension promises.