As we all are aware that Deutsche
bank may be forced by US justice department to pay hefty fine related to sell
of toxic mortgage in and around financial crisis in 2008. It is believed that
Deutsche Bank may get out of the situation with lower affordable fine. Many are
expecting that fine may go upto $14 Bn which may put bank in tough situation.
One of the largest bank worldwide
in terms of assets, many customers may start withdrawing their money which may
lead to cash crunch and subsequently debacle. I pray that such situation never
happen. In a scenario, cash crunch happen then bank may raise funds through
bond sell but it will have ripple factor on banking sector.
Deutsche bank is very active
participant in world financial market and that may impact the banks based out
of US too.
We all know that after 8 years of
continuous effort by US government and federal reserve, US economy including
financial market started seeing ray of hope.
Any negative around Deutsche bank
may dash down those hope and economy may turn upside down as financial market
should be growing for any economy to grow.
In my point of view, justice department of US will consider the gravity
of situation and will take affordable solution.
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