Deutsche Bank and the Riskier Banks

Things are really difficult for Deutsche Bank these days. The German Bank is over-exposed in the US shale gas industry, from which more bankruptcies are expected in the near future. It has also the greatest exposure to derivative products than any other bank in the world. The Deutsche Bank exposure in derivatives exceeds $54 trillion. The Deutsche Bank has a capital equivalent to only 2.68% of the value of its assets - the worst performance of all the major banks worldwide. A healthy bank requires at least 10%. Finally, it has to deal with $14 billion fine imposed by the US Department of Justice for fraud in the sale of securitized mortgages.

The market cap of Deutsche Bank is now at $ 16 billion. The German Chancellor recently said that there will be no assistance for the Deutsche Bank. Note that the seven banks with the highest level of risk are all in Europe.

Chart: The Riskier Banks 

Riskier Banks

Deutsche Bank in Problems