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Thursday, October 13, 2016

Deutsche Bank's troubles beginning of next financial crisis

To listen to Barack Obama and Hillary Clinton, the U.S. economy has recovered miraculously from the financial crisis, and another jolt of left-wing economics will hoist Americans into a new golden age.

Yet, growth remains an anemic 2 percent at best. In Europe, prospects are even worse and downright menacing.

The U.S. Justice Department has proposed Deutsche Bank pay $14 billion to settle its role in a mortgage securities scandal that contributed to the 2008-09 financial meltdown, and other European banks still await their medicine. Even a settlement one-third that size would require the bank to sell stock to replace lost capital, and it is not well positioned to do so.


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