Op/Ed: Deutsche Bank - From Hero to Zero

AddThis Social Bookmark Button

An European icon’s fall from grace is almost complete. On November 29, 170 police officers and tax investigators raided Deutsche Bank's head office and other locations in Frankfurt. The ambush was part of a money laundering probe.

The German bank is suspected of helping clients to set up offshore companies in tax havens.

Investigators are also looking at whether Deutsche Bank failed to report suspicious transactions. This is the latest, and most high-profile, “bad news” in connection with the once mighty German bank. On the Deutsche Börse on December 4, its shares were changing hands for around €8.


Beltway Insider: President George H.W. Bush Dies, Trump/G20 Cold War, Brexit, Putin's Long Game; US/MX/CA Trade; Olivia Hooker


It’s a long way from 2007 when, at the height of the banking bubble, Deutsche Bank shares reached a high of €92.05. Back then, writing in March 2007 for the 2006 annual report, Deutsche Bank CEO Josef Ackermann noted, “2006 was a year of great success and achievement for Deutsche Bank” and “several powerful and fundamental trends are shaping our operating environment.” The share price peaked two months later and has since fallen by over 90%.

Heroes of bull markets tend to become the villains of bear markets. When social mood is trending positively, as reflected by rising stock prices, the icons of the day are put on a pedestal thanks to the general feeling of euphoria. When social mood trends negatively, as reflected by declining stock prices, those icons are subsequently blamed for the downturn. They are vilified, investigated, put on trial and, in some cases, jailed.

Our chart shows how circumstances have changed for Deutsche Bank since 2007. The bank has now become a by-word for inept management. In 2007, nobody saw anything but blue sky. In 2018, nobody sees anything but probable bankruptcy.  

About Murray Gunn

Murray Gunn is Head of Research for Elliott Wave International’s Global Market Perspective, a monthly summary of the firm’s 25 analysts’ views on every major freely-traded market in the world. After earning his Master of Arts (Honors) degree in Economics from the University of Dundee in Scotland in 1991, Gunn went into fund management. He quickly realized that textbook descriptions don’t apply to real-world markets, which in turn led him to technical analysis and the Elliott Wave Principle.


Business/Finance: Macy’s CEO Jeff Gennette Speaks with CNBC’s "Squawk on the Street" (Exclusive)


He worked as a fund manager in global bonds, currencies and stocks, including long posts at Standard Life Investments and a five-year stint in the Middle East at the Abu Dhabi Investment Authority. Gunn then joined HSBC as Head of Technical Analysis. He has served on the board of the Society of Technical Analysts and delivered lectures on the Elliott Wave Principle to students at The London School of Economics, Queen Mary University and Kings College London. You can read Gunn’s commentary in Elliott Wave International’s Global Market Perspective, Interest Rates and Currency Pro Services, and on deflation.com.

About Elliott Wave International
Elliott Wave International is the largest independent technical analysis firm in the world. Its award-winning publications provide useful insights and engaging commentary on all major financial asset classes and indexes around the globe. EWI’s unique perspective on market behaviour and cultural trends sets it apart from other financial publications.

Haute Tease

  • Beltway Insider: Obama Addresses U.N.; U.S. Delegates Meet with Foreign Leaders; Nairobi Attack; Fiscal Shutdown Looms

    AddThis Social Bookmark Button

    President Barack Obama addressed the General Assembly of the United Nations speaking to a full delegation as the heads of state from every member nation converged on New York City for the annual meeting.

     
  • Zuzu Still Thinks IT’S A WONDERFUL LIFE: A Conversation with Karolyn Grimes

    AddThis Social Bookmark Button

    Nothing completes the holiday experience more than an extra serving—to go with the booze and candied yams—of Frank Capra’s yule-tide yarn, of IT’S A WONDERFUL LIFE. It’s a picture that can melt even the iciest of hearts and for those of us grown-ups with no self-worth (or money) in December, there’s just something downright conciliatory about it.

     
  • AVENUE Magazine Sold to Cohen Media Group

    AddThis Social Bookmark Button

    Manhattan Media LLC today announced the sale of AVENUE, Manhattan's oldest society magazine, to Charles S. Cohen's Cohen Media Group. Cohen Media is the fifth owner of AVENUE in its 42 years of continuous publication.  

  • Europe Tightens Border Control Amid Refugee Crisis

    AddThis Social Bookmark Button

    Syrian refugees continue to seek asylum in Western Europe before countries in the EU institute border controls to manage the flow of thousands of migrants. The refugee crisis has presented a challenge to the continent's open border policies that have been in place for decades.

     
  • LA LA LAND Review - Charming, Magical, Enchanted L.A.

    AddThis Social Bookmark Button

    LA LA LAND, from Lionsgate and Black Label Media, comes a delightfully charming look at the arduous process for star crossed hopefuls, courageous believers, in a town littered with aspiring headliners, social climbers, do anything's, broken dreams, and rejections.

     
  • John Legend, Get Lifted and Jesse Williams to Produce Doc on 1968 Olympic Gold Medalist Tommie Smith

    AddThis Social Bookmark Button

    Grammy® and Academy Award®-winning sensation John Legend, his Get Lifted production company, and actor and activist Jesse Williams to executive produce doc about 1968 Olympic Gold Medalist Tommie Smith, "With Drawn Arms."  

  • Mr. Holmes Review – Innovative and Original

    AddThis Social Bookmark Button

    Mr. Holmes, from MIRAMAX and Roadside Attraction, brings to the screen a new twist in the magical world of the world’s greatest detective Sherlock Holmes, with fresh dialogue and contemporary sufferings, an innovative and original tale is spun.

     
  • Father’s Day Gift Guide - Fantastic Gifts For Every Dad

    AddThis Social Bookmark Button

    As Father’s Day approaches there is serious contemplation on what to get “Dad” that will not only surprise him, but will genuinely delight and excite him. This holiday, demonstrate your present-giving prowess with these fantastic Father’s Day gift ideas.  

  • Money News: Global Markets Tumble; Sensex Survives

    AddThis Social Bookmark Button

    The Dow Jones Industrial, fighting the Bear market, managed to rally steadily throughout the week, with only minor setbacks the DOW wasn’t able to pull itself out of the firmly held grasp of the bear market and closed down.

     
  • Bohemian Rhapsody Review - Four Stars! Wild, The Poetic Genius Continues

    AddThis Social Bookmark Button

    Bohemian Rhapsody, from 20th Century Fox, presents the story of the legendary Freddie Mercury, and the radical 1970’s experimental rock band Queen, and how they transformed themselves and every other sound by making bold and outrageous musical choices.

     
  • Beltway Insider: Obamacare Site Fails; Obama, VP Host Foreign Leaders; White House Denies Spying; Sandy Hook Demolition Begins

    AddThis Social Bookmark Button

    President Obama, who championed the legislation that would provide affordable health care to millions of uninsured Americans, is now facing a firestorm of scrutiny as the rollout for the online health marketplace has suffered repeated disruptions and outages.

     
  • 44TH AFI Life Achievement Award Tribute Gathers American Film's Finest To Celebrate John Williams'

    AddThis Social Bookmark Button

    Composer John Williams was honored with the American Film Institute's (AFI) 44th Life Achievement Award on Thursday, June 9, in an evening filled with music and memories from his treasured collaborators, including J.J. Abrams, George Lucas and Steven Spielberg.  

  • Whitey: United States of America v. James J. Bulger Review – Explosive, Stunning, Powerful

    AddThis Social Bookmark Button

    "Whitey: United States of America v. James J. Bulger," from Magnolia Pictures and CNN Films, presents a haunting account of DOJ corruption that enabled the most notorious mobster in recent history to rule South Boston for more than three decades.

     
  • Body at Brighton Rock Review - Heightened Suspense Drives This Survival Story

    AddThis Social Bookmark Button

    Body at Brighton Rock, from Magnolia Pictures, presents a heightened suspense survival story of an unequipped Park Ranger who, after wondering off trail, stumbles onto a mauled body and must last the night in the wilderness alone.

     
  • Shooting Erupts at LAX Airport; TSA Officer Killed

    AddThis Social Bookmark Button

    A Transportation Security Agency agent was shot and killed when a single suspect opened fire at the Los Angeles International Airport, firing as many as 20 rounds with a high powered assault weapon.