http://www.reuters.com/article/us-usa-stocks-weekahead-idUSKCN1202O8
Deutsche Bank will likely cast a pall over equity markets next week as the largest German lender navigates a possible multi-billion dollar settlement with the U.S. Department of Justice [DOJ] over the sale of mortgage-backed bonds. Deutsche shares traded in the United States hit a record low on Thursday, falling as much as 24 percent since the DOJ asked the bank to pay $14 billion to settle charges related to its sale of toxic mortgage bonds before the financial crisis.
But the stock had its best day in five years Friday, on record volume, after news agency AFP reported that Deutsche was nearing a much-lower $5.4 billion settlement with the DOJ. Analysts at Morgan Stanley estimated Deutsche could pay about $6 billion to settle with the DOJ.
(Score: 2, Interesting) by khallow on Monday October 03 2016, @04:34AM
My view is that revelations of such widespread criminal activity are actually the late stages of a market bubble. A huge part of the market would have ignored risk for some time by this point, including eventually criminal activity by a opportunistic ecosystem springing up to take advantage of the situation. These stories both display that risk ignorance (after all, what's the ROI on an anti-fraud division, right? We're too busy making bank to care) and help stir up the eventual attitude reversal that marks the crash.
If you're in the habit of leaving steaks unattended on the table and letting Fido yank them off whenever, then don't be surprised when Fido disappears a lot of steaks. And certainly don't blame Fido when your source of steaks suddenly dries up or you have to clean up 50 half chewed steaks stashed in the hallway closet.