http://finance.yahoo.com/news/deutsche- ... 08923.htmlMILAN, June 30 (Reuters) - European shares rose for a third straight session on Thursday, with expectations of central bank stimulus helping ease jitters over Britain's vote last week to exit the European Union.
Deutsche Bank however fell to an all-time low after its U.S. unit failed stress tests and the IMF said the German bank was the biggest potential risk to the wider financial system.
http://www.forbes.com/sites/elyrazin/20 ... d3728e2bd6Deutsche is high on the list of non-UK banks exposed to Brexit risk, as it has significant London-based operations and about 20% of its revenue reportedly comes from the UK. It is also cutting staff, and the IMF report notes that “repeated fines for involvement in the systematic manipulation of benchmarks, misleading regulators, and violating U.S. restrictions on conducting business with sanctioned countries hit Deutsche Bank’s bottom line and may be indicative of corporate governance issues.”
The IMF report highlights the interconnectedness of international finance, which, in a worst-case scenario, could mean that Brexit poses a systemic risk not just to the commercial real estate market but to the global financial system at large.
Could it be the next Lehman Brothers?
If this happens, it will be pretty bad.