First Silicon Valley in the USA, then Swiss credit in Switzerland, and finally one of the most important banks in Germany. Financial markets are reeling in the aftermath of Black Friday Deutsche Bank. From the FED to the ECB, today banking institutions are reassuring about the solidity of the system. But it is clear that the sudden rise in interest rates is putting a strain on the banking system.
And after decades ofquantitative easing” e tassi a zero, now several knots are coming home to roost. But not only these collapses incorporated into the current geopolitical situationalso raise several question marks.
The sudden collapse that occurred last Friday of the shares of Deutsche Bank makes you think a lot. Because there are points in common and singular differences with the case Swiss creditwhich require us to reflect on the possibilities political factors behind this sudden financial chaos in Europe. Daniel Grosthe director of theInstitute for European Policy Makingstated in this regard that we are faced with “sudden crises with such different origins. That one wonders: where will the next hole open. It’s like a dark enemy worked from within”.
Swiss credit in the crosshairs of the US Department of Justice
Swiss credit he had built up an undignified reputation over the years. The Swiss institute had recently received a criminal conviction for facilitating the laundering of a Bulgarian drug trafficking organization. But over the years she had already served various scandals come: protect large deposits of dictators and criminal organizationslike the mafia Japanese Yakuza, and helping western companies ad circumvent sanctions on Iran and Sudan. But the most curious and interesting fact about the collapse of Swiss credit is that just before the fibrillation on the market, together with UBS have received from the United States Department of Justice a request for information on its employeesin the context of an investigation into the circumvention of sanctions on Russia. Where Credit Suisse, still in May 2022, managed a good 33 billion dollars for the Russian oligarchs. And according to the investigation it would have helped them to evade the sanctions. Is the bank’s exposure to Russia before the crash just an accident?
European banks targeted by speculation as in 2008
The coincidences of the case Deutsche Bank they are even more striking. Over the past five years, under the leadership of Christian Sewingthe German bank had managed to maintain a rather “cautious” line ea settle their accounts. According to some, last Friday’s collapse was recorded above all by the strong exposure of the German institution to the US commercial real estate market. That would have prompted investors, following the collapse of SVBto point the finger up Deutsche Bank. But the reality turned out to be quite different. The collapse was the result of a speculative attack devised by some American hedge funds.
Various international newspapers in the sector in fact highlight how on Thursday evening, American funds bet downwards on the shares of the German bank. As? By simultaneously purchasing a large amount of derivati CDS. The same financial instruments exploited by Anglo-American high finance in 2008 to sink the eurozone against the dollar. When nervousness spread through the markets on Friday morning, mainly due to the refinancing of two small German banks such as the German mortgage bank e Aareal Bankthe CDS price of Deutsche Bank it splashed generating a herd effect that realized the crisis. And that has dragged down the lists of the major European financial indices.
The objectives of the EU in contrast with the USA
Il collapse Of Deutsche Bank it happened in a short time After the explanations by theHigh Representative of EU foreign policy, Borrell, and the president of the EU commission, Von Der Leyen, regarding a possible trip to China. Which clearly hinted at Europe’s intention to want dialogue directly with the Dragon to reach an agreement on peace in Ukraine. Also in this case the timing on the markets has something of the “extraordinary”. In the 2008 the US intent was to safeguard the monopoly of the dollar in crisis, to the detriment of the eurozone. Are the frictions of some lenders towards Russia and the possible opening of the EU towards China perhaps uncomfortable in the eyes of the Americans today?