Deutsche Bank is seen as "the most dangerous bank in the world." No, that's not the view of one of the many thousands of American homeowners whose homes bave been foreclosed on by Germany's biggest bank. Rather, its a headline in the Frankfurt daily Frankfurter Rundschau: Deutsche Bank die gefährlichste Bank der Welt.
That is actually the judgement of the Bank of Japan. Japanese regulators have made a list of the top 60 “too big to fail” financial institutions , with Deutsche Bank ranked at the top followed by Goldman Sachs and JPMorgan Chase. With tough new bank rules known as Basel III having been finalised, investors are focusing on which firms regulators will deem to be Systemically Important Financial Institutions, or SIFIs. The Sueddeutsche Zeitung has a good explanation:
Mit der Frage der Systemrelevanz wollen Politik, Aufseher und Notenbanker das Problem angehen, dass besonders große Institute bei einem Zusammenbruch die gesamte Finanzwirtschaft mit in den Abgrund reißen können. Diese Gefahr macht die Steuerzahler erpressbar, weil die großen Institute auf jeden Fall vor einem Kollaps gerettet werden müssen. Das wird im Fachjargon unter dem Begriff 'too big to fail' zusammengefasst.
(Politicians, regulators and central banks use the concept of "Systemically Important" to address the threat that the collapse of expecially large institutions could drive the entire global financial system into the abyss. This danger makes taxpayers susceptible to blackmail, since these large insititutions must at all cost be rescued from collapse. This concept is summed up by the phrase "too big to fail".)
Deutsche Bank has always been extremely jealous of Goldman Sachs for its number one ranking as the most powerful investment bank. Now Deutsche Bank is finally number one in a global ranking. Congratulations to Joe Ackermann.
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The “to big to fail” reasoning implies by its very nature government intervention in the free market, it basically says: if this business fails there will be too many repercussions therefore government will have to bail it out. But by that very statement government has already interfered in Risk assessment of any decision and therefore in time by human action it becomes “will fail!”
I doubt any company can be more dangerous or corrupt then Goldman Sachs but it is not a good sign if this is said of the Deutschebank. Just for fun here is a funny clip about Goldman Sachs and there corruption.
http://www.youtube.com/watch?v=PTUY16CkS-k
We’ve seen the result of this “anti-government” rhetoric that has infected the libertarian Tea Party: a congresswoman shot in the head and six people killed (including a federal judge – representing the hated government). Among other things, the shooter was upset that our currency was not “backed by gold and silver”. Oh, and one of his favorite authors is Ayn Rand.
The fool believed in the rhetoric and decided to act on it…
“A 22-year-old woman in Arizona, Caitie Parker, claimed on her Twitter feed that she went to high school and college with the gunman, and was in a band with him. She described his politics in the past as “left wing, quite liberal, & oddly obsessed with the 2012 prophecy.” She also described him as having a lot of friends “until he got alcohol poisoning in ’06″ and dropped out of school.” – His favourite video was apparently of an American flag burning and he liked read the Communist manifesto and Main Kampf both collectivist works, he was also a convinced atheist – So what the hell has it got to do with the gold standard or the call for smaller government? All Anarchists are apposed to violence and most paleoconcervitaves as well, Alcoholic violent leftwing radicals you will unfortunately always find but this guy apparently met her before, so I suspect he was a supporter who got to obsessed and was somewhat mad…How is this the fault of peaceful ideologies again?
If anything, the shooting highlights the need for MORE government intervention. If we had rational gun laws in the US perhaps tragedies like this could be avoided. As it stands, any lunatic can legally purchase a Glock 19 in most states. It is a libertarian paradise.