CyprusLiving

The BBC reported this morning, “Deutsche Bank was “considering” moving “some” of its departments out of London back to Germany. Deutsche Bank employs some 7000 jobs in the UK.” More political scare mongering and a move the German bank may come to bitterly regret as present and future investors also consider their positions in the German bank.

A recent report by Hagmann & Hagmann, a U.S. financial organistion that provides radio listeners with information about current events and historical topics and delves into the real issues behind the sugar-coated news. On Deutsche Bank it concluded:
‘Deutsche Bank’s derivative debt is greater than the global economy. That is one bank $72 trillion in derivative exposure. The entire global economy, all the countries in the world is only $66 trillion GDP’.
And there’s the Troika, worrying about a Greek debt that is just 0.5% of Deutsche Bank’s exposure. Derivatives are, “ a financial contract with a value that is derived from an underlying asset. Derivatives have no direct value in and of themselves -- their value is based on the expected future price movements of their underlying asset.” Gambling to you and me.

The City of London would be glad to get rid of a bank with that exposure when they have, mainly Asian and Chinese banks, queuing to get into the worlds financial centre. As for the UK employees of Deutsche Bank they must be rubbing their hands at the thought of a lovely redundancy payment and employment with an employee who is bursting with funds. The City estate agents will be chasing Deutsche Bank for the amount of space they can release and employment agencies handing the staff moves.

Pity this came out so soon as it was to be one of David Cameron’s cards to play during the “Reforming the EU” negotiations. Let’s see how Angela Merkel and the EU commissioners respond to this.