Deutsche's pain a sign bank regulation is working
Despite the US Dept of Justice threatening a US$14b fine, the German lender is in better financial shape now than in 2008
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DEUTSCHE Bank's jitters have revived memories of 2008. Like that turbulent autumn eight years ago, investor confidence in one of the world's largest lenders has been shaken. Deutsche's share price has dropped and hedge funds are reported to be withdrawing spare cash. Chief executive John Cryan's assurance that the bank has "strong fundamentals" echoes the futile reassurances issued by the bosses of Lehman Brothers and Royal Bank of Scotland before those institutions failed.
Yet, despite its many problems, Deutsche is far better equipped to absorb a shock than it was eight years ago. So is the financial system as a whole. This is because of the efforts of bank regulators.
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