The similarities between Deutsche Bank and Lehman Bros. grow by the day.
CEO John Cryan is pulling out the Lehman playbook used not so effectively by ex-Lehman CEO Dick Fuld.
Layoffs abound as the German bank cuts losing divisions, just like Lehman.
Defections of the top traders and execs continue across the globe, just like Lehman.
The bank just completed a sale that it said lost the bank more than $100M, but it brings capital in, which is the much-needed life blood right now, just like Lehman.
Cryan also professed that the bank does not need a bail out since it has “plenty of liquidity,” just like Lehman.
However the German financial press has reported that plans are being drawn up, despite German Chancellor Angela Merkel saying on Monday no bail out would come.
Why am I continuing to write on Deutsche’s troubles?
Because unlike Lehman’s demise, there is no central bank cure for this catastrophe.
The size of its derivative book, which is conservatively $50T notionally, could create a $2T shortfall and a huge drain on global liquidity at a time when central banks have record debt.