We know that Deutsche Bank’s derivative tentacles extend into most of the major Wall Street banks. According to a 2016 reportfrom the International Monetary Fund (IMF), Deutsche Bank is heavily interconnected financially to JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley and Bank of America as well as other mega banks in Europe. The IMF concluded that Deutsche Bank posed a greater threat to global financial stability than any other bank as a result of these interconnections – and that was when its market capitalization was tens of billions of dollars larger than it is today.
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As I said after the last “crisis”, isn’t “too big to fail” really “too big to exist”?
Seems like the corporate tax code could be used effectively to mitigate this risk. For example, a balance sheet that is bigger than the Federal budget is subject to a 5% excess tax. And, no one can get a W2 for more than the President gets. How about that executives get 20 year non-transferable non-optionable corporate bonds for their compensation more than the President? (Guess they’d have to be sure the Firm survives long enough for their bonds to pay off!)
Corporations are creations of the Gooferment and can be treated badly like this.
Oh, and yes, no “campaign contributions”!
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