European Central Bank changes capital requirements so that insolvent Deutsche Bank can pay big bonuses

Never let yourself be fooled… the SOLE purpose of a central bank is to aid in the profit and stability of their member banks.  If by their monetary policies they happen to aid the sovereign nation they are tied to, then it is nothing more than coincidence or happenstance.

Eight years ago, when the financial crisis led the U.S. Treasury and Federal Reserve to beg for a taxpayer funded bailout of the banks, Americans were outraged when huge bonuses were paid to executives of these insolvent institutions, and this in part led to the passage of legislation which would have depositors and bondholders perform the bailouts the next time there is a crisis.  Yet public outrage has never stopped bankers from doing what they want to do anyway now that governments refuse to prosecute their fraud, and so it should come as no surprise that the ECB on Dec. 27 is lowering the capital requirements of Europe’s most insolvent bank so that executives can receive their own massive bonuses here at year’s end.

While Deutsche Bank has had a generally terrible year, with its stock price plunging to all time lows on capitalization (and, at times, liquidity) concerns following the now concluded episode of its RMBS fine which the bank settled last week for roughly $7 billion of which just over $3 billion in actual cash payments, well below Wall Street’s worst case scenario, another far more important open item was whether DB executives and staffers would receive a bonus in a year in which markets seriously wondered if the biggest European bank would get a government bailout.

Here, the the rumormill was in overdrive: in October speculation was rampant was that DB would skip cash bonuses, making payments in shares of non-core units of the bank; other rumors tied bonus payments to the company’s share price, while in yet more rumors, some suggested that DB would cancel or even clawback bonuses for/from former executives.  In any case, had DB not succeeded in settling its RMBS litigation, it was assured that the German lender would not pay any bonuses to anyone.

So now that that particular episode in the bank’s history has been concluded, and the management team got an implicit greenlight to make bonus payments… a new problem emerged: Deutsche would be in further breach of its capital requirement had it made billions in bonus payments.

Fast forward to this morning when the ECB once again rode to the rescue, if not so much of Deutsche Bank the company, then certainly the employees of the German bank, and as Reuters reported overnight, Mario Draghi agreed to lower the minimum capital requirements for Deutsche Bank on Tuesday, “giving the lender more leeway to structure bonus payments and dividends.” – Zerohedge

Ironically, banks like Deutsche have been at the forefront of calling for a ban on cash so that depositors would never again have the choice of taking their money out of a collapsing institution, as is occurring right now in Italy at Monte Dei Paschi.

BANKERS-COPS

With the advent of the internet and alternative media, the public should be well aware of the evils of private central banking and how your money is no longer your own the moment you deposit into one of their banks.  And since governments and regulators will not take a stand against the corruption and avarice bankers impose on taxpayers and depositors alike, the only solution is to stop feeding these animals and get your money into a financial structure that is completely outside the banking system.

Kenneth Schortgen Jr is a writer for The Daily Economist, Secretsofthefed.comRoguemoney.net, and Viral Liberty, and hosts the popular youtube podcast on Mondays, Wednesdays and Fridays. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.

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Democrats everywhere are wildly slinging the “I” word, hoping to nail Trump for high crimes and misdemeanors after the New York Times claimed a memo written by former FBI Director James Comey said the president urged him to end the federal investigation into former national security adviser Michael Flynn. Some members of Congress are getting in on the action. They include Reps. Maxine Water, D-Calif., and Al Green, D-Texas. Even a Republican, Rep. Justin Amash, claimed Wednesday there are grounds to impeach President Trump. House Oversign Committee Chair Rep. Jason Chaffetz, R-Utah, asked for the alleged Comey memo and other documents. Chaffetz tweeted that he is prepared to subpoena the information. And Sen. John McCain, R-Ariz., invoked “Watergate.” Now the Democratic Party is reportedly poll testing impeachment as a 2018 election issue. More than 1 million people signed a petition calling on Congress to impeach Trump. Wasting no time Wednesday, the mainstream media sprang into action, enthusiastically echoing the left’s impeachment calls. MSNBC launched a Watergate ad implying Trump is America’s new Richard Nixon. “Watergate. We know its name because there were reporters who never stopped asking questions,” says MSNBC host Chris Hayes, who hinted that Trump is next on the impeachment chopping block. “Now, who knows where the questions will take us. But I know this: I’m not going to stop asking them.” Meanwhile, some overzealous members of the left plastered fliers around Washington, D.C., demanding all White House staffers resign Wednesday. The posters read: “If you work for this White House you are complicit in hate-mongering, lies, corrupt taking of Americans’ tax money via self-dealing and emoluments, and quite possibly federal crimes and treason. Also, any wars will be on your soul. … Resign now.” But constitutional scholar Jonathan Turley, who voted for President Obama, warned “impeachment” enthusiasts not to get ahead of themselves with President Trump. Why? At this time, there’s no evidence Trump actually committed a crime. “The criminal code demands more than what Comey reportedly describes in his memo,” Turley wrote in a May 17 opinion piece posted at the Hill. Turley explained: For the first time, the Comey memo pushes the litany of controversies surrounding Trump into the scope of the United States criminal code. However, if this is food for obstruction of justice, it is still an awfully thin soup. Some commentators seem to be alleging criminal conduct in office or calling for impeachment before Trump completed the words of his inaugural oath of office. Not surprising, within minutes of the New York Times report, the response was a chorus of breathless “gotcha” announcements. 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