Bangkok, March 25 – The Federation of Thai Capital Market Organizations warns of a "perfect storm" that shakes banking problems in Europe, spreading to Deutsche Bank, a giant German bank.
Mr. Kobsak Pootrakool Executive Vice President Bangkok Bank and Chairman The Federation of Thai Capital Market Organizations (FETCO) revealed that financial institutions in Europe began to cause more anxiety Following the issue of Credit Suisse Bank, when Deutsche Bank or Deutsche Bank, the 22nd largest bank in the world and number one in Germany $1.5 trillion worth of assets counted as another bank Investors stare After last night, DB prices dropped -14.5% before rebounding to -8.5%.
such volatility make investors worried about the financial crisis in Europe have come back again Since the price of DB collapsed by 14-15% during the day, the problem arose. Causing stock prices of other major banks in Europe to fall as well, for example
Commerzbank from Germany -7.5%
Societe Generale from France -5.9%
Raiffaisen from Austria -5.9%
Swiss UBS -3.6%
Credit Suisse from Switzerland -5.2%
Mr. Kobsak admits that this period is a sensitive period. Every news is meaningful and significant after the news came out yesterday that DB wants to buy debentures (Tier 2 Subordinated Debt) back 5 years ahead of time (according to the conditions specified that it can be done). that the bank is in a good position able to reduce debt But it has become the beginning of a new round of volatility. Causing all eyes to turn to look at "DB, is there a problem?"
When the CDS of DB bonds increases Causing a sell-off of stocks, despite the problems in Switzerland Some of the deposits have flowed to DB, while DB has just announced its highest gain in 15 years, about $5.5 billion. That's up from about $2 billion a year earlier. an event like this It's because this period is not normal. when he heard some strange news Problems may follow. Even fairly well-off banks such as Deutsche Bank are in trouble. Reflects sensitivity, accumulated from 1 year of Perfect Storm.
“A year of rapid rate hikes by central banks. has put unprecedented pressure on the global financial system. Therefore, it must be followed to see that what will happen next Which bank will be the next target and turmoil like this? It probably won't be the last time in the Perfect Storm crisis!!!
Source: Thai News Agency