Dienstag, 28. April 2009

Deutsche Bank

Ackermann likes to brag that Deutsche Bank needs no government support. But the thing is: While the bank has no formal government guarantee in place, it will surely be able to get government support if it turns out to be needed. All market participants know this, and they do business with Deutsche Bank based on this implicit guarantee, provided for free by the German taxpayer. That certainly improves Deutsche's business prospects, and lowers its funding costs. So maybe, just maybe, Ackermann would be well advised to keep a lower profile...


  1. And Deutsche received already indirect goverment help. Goverments all over the world bail out Deutsche's counterparties. Without this support Deutsche would have been in default already. Just Hypo Real Estate's and AIG's default might have been enough to sink Deutsche.

  2. True. If AIG hadn't repaid those 13 bn $, it would have been more than enough to destroy Deutsche's balance-sheet.