The news out of Frankfurt has been a long time coming. Actually, hard as this is to believe a decade on, what we are witnessing here is not the start of the next financial crisis but the tail-end of the last one. The real problem is that Deutsche Bank just doesn’t make any money. The assets in the bad bank still belong to Deutsche no taxpayers are picking up the tab for any of this. But, as is often the case in the world of finance, the big numbers can conceal a more prosaic reality.ĭeutsche Bank is not insolvent, it doesn’t have a liquidity problem, and it isn’t going to go bust. This certainly suggests that something is severely amiss.

The German lender is creating a €74bn (£65bn) “bad bank”, cutting 18,000 jobs - a fifth of its workforce - shutting its equities sales and trading business, making a loss of nearly €3bn in the second quarter, and facing a total restructuring bill of around €7.4bn. The scale of the numbers being talked about is daunting. The massive overhaul at Deutsche Bank announced over the weekend will naturally raise fears that we are staring down the barrel of a new financial crisis.

Is deutsche bank going bust