DEUTSCHE BANK CREDIT RATING
The downgrade of Deutsche Bank credit rating as a consequence of:
A) higher restructuring cost
B) the latest news from the USA
In our point of view, this makes sense, since the impact has been minor, if not zero since the rating agencies are anyways always slower than the market.
We “like” these news since it puts even more pressure on the bank to get rid of the worst bank manager ever – the head of the SVB Dr. Paul Achleitner.
This is the ONLY way to turn around the negative sentiment in the short term, since any positive outcome from the restructuring may not be visible before 2020. But if it happens, a lot more will follow and the network of people that Achleitner built up over the last years and who are responsible for the DISASTER will be dissolved …
The whole first and second management level in the bank is imploding – there is a mix between silence, depression and war in the offices in Frankfurt, London and NY but no “yes we can” attitude any more, since the actual staff has NO credibility any longer – NOWHERE
This story is unique in the history of banks – the former possibly most solid bank in the world is turning into a distressed local player – and everybody but the management is aware of it …
However – EVERYBODY is selling short, lots of downgrades, no one still believes in serious changes with the current crew, but:
If Achleitner leaves – AND HE WILL SOON – a short but serious earthquake will follow – and the bank will finally have a real chance for a successful reset and restart – it will be HONOURED BY THE MARKET.
If he doesn’t leave, the earthquake will come equally fast – with dramatic consequences that the MARKET WILL REACT TO.