Worries about the fragile state of the largest lender in both Germany and Europe, Deutsche Bank AG, dominated the unofficial agenda when bankers and finance officials from all parts of the world came to the annual meetings of International Monetary Fund, the World Bank, and the Institute of International Finance in Washington this October.
At the time, the headlines in the financial press on the smoldering Deutsche Bank crisis were indeed scary. On September 26, 2016, The Telegraph came out with the dire prediction: “The Deutsche Bank crisis could take Angela Merkel down—and the Euro.” A day later, Bloomberg headlined, “Deutsche Bank Returns to Haunt Merkel in an Election Year.”
During the IMF/World Bank meetings, Deutsche Bank’s domestic rival Commerzbank—which still carries a large government rescue debt—kept up the tradition and invited the German financial community in attendance to a buffet cruise on the Potomac river aboard the Cherry Blossom. On the same day, EurActiv warned in its cover piece, “Financial expert: Deutsche Bank collapse ‘would probably trigger new global financial crisis.’” On CNBC, U.S. Attorney General Loretta Lynch was confronted with the accusation, “How U.S. regulators may be creating panic around Deutsche Bank.”
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