Former Wall Street insider and head of the OMB calls out bank ceo’s as liars and untrustworthy
Almost eight years ago, the former CEO of Bear Stearns appeared on CNBC to say that they were fully capitalized, and had $26 billion in liquidity. ¬†Three days later, the 85 year old institution was gone forever.
Subsequently, other long-standing banks would also fail during that tumultuous year, with executives and business news analysts lying to investors who lost everything by not getting out while their shares were still available to be traded.
Fast forward to 2016.
Germany’s largest financial institution Deutsche Bank stands on the cusp of the next ‘Lehman Moment’, and once again members of the bank, along with business analysts, are downplaying their straits as being of ‘little note’.
During an interview with Bloomberg TV discussing the future of Deutsche Bank, John Mack said that “there‚Äôs no question in my mind, it is absolutely good for every penny.” In other words, “Deutsche Bank is fine.”
Why is he so confident? According to Mack, “this idea that I heard yesterday, the possibility of not making their interest payments, it‚Äôs just absurd. The government will not let that happen.”
Said otherwise, it will be bailed out. One wonders if Germany’s citizens were polled before John came up with this conclusion. – Zerohedge
Yet even as a CEO of a formerly collapsed bank (John Mack, Morgan Stanley) has the audacity to ‘speak’ for a sovereign government, and even THEN lie about who will actually bail Deutsche out (depositors, not taxpayers), a well respected Wall Street insider has a different view on the expected outcome of the German bank.
Following this morning’s proclamation by Deutsche Bank co-CEO John Cryan that Germany’s largest bank is “rock solid,” David Stockman exposed the ugly truth that everyone appears to have forgotten from just 7 years ago…
“in my experience is that when the crunch comes, bank CEOs lie”
Stockman details the Morgan Stanley, BofA, Lehman, and Bear Stearns bullshit that occurred before exclaiming…
“I don’t trust Deutsche Bank. I don’t trust what they’re saying. And there’s reason why the banks are being sold all across the world… because people are realizing once again that we don’t know what’s there [on bank balance sheets].”
So… which of these men would you put your trust? ¬†In one who went through the 2008 financial crisis and lost control over his bank, or the man who saw the financial collapse coming back then, and is seeing it now occur again before our eyes?
Kenneth Schortgen Jr¬†is¬†a writer for¬†Secretsofthefed.com,¬†Examiner.com, Roguemoney.net, and To the Death Media, and hosts¬†the popular¬†web blog,¬†The Daily Economist.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.