Is Deutsche Bank about to go down? What are the global implications if any? Would we be affected?
My view: Retail Banks (where you and I deposit cash) should be stripped out of all non-traditional banking activities like playing with derivatives, Collateralised Debt Obligations (CDOs) and all the fancy instruments (the virtual stuff).
Remember Arthur Anderson and Enron, the big 4 are now doing the same as well – auditing as well as advising the same clients, i.e. advising how to generate more revenues whilst ensuring they are not doing what they should not be doing in terms of breaching regulations, standards and upholding a high level of governance. Two conflicting objectives, each delivered by a separate part of each of the Big 4 and having to hit their own growth metrics! Another disaster waiting to happen, don’t you think so?
Humans think they learn, but in reality, our greed to generate more income makes us forget the errors we made in the past.
Plus the new generation did not suffer in the past so ignorance is easier for them.