This Huge Bank Is Sitting on a Pile of “Financial Weapons of Mass of Destruction”

by Doug Casey, Casey Research:

Investors are having flashbacks of 2008.

If you’ve been following the markets, you’ve probably noticed something disturbing.

Deutsche Bank (DB), Germany’s biggest bank, is in free fall. Its stock has plummeted 53% over the past year. Last Thursday, it hit a new all-time low.

Deutsche Bank’s downward spiral has captured the world’s attention. After all, it’s a pillar of Europe’s banking system. If it collapses, the rest of Europe’s banking system could too.

That would be a serious problem for everyday Europeans and European investors. But as you’ll see today, it’s still a major threat to your wealth even if you live far outside Europe…

• Deutsche Bank could spark the next global financial crisis…

That’s because Deutsche Bank is leveraged to the gills.

According to a recent study by the U.S. Federal Deposit Insurance Corporation (FDIC), the German lender has a leverage ratio of 2.68%. This key metric measures a bank’s financial strength. The lower the ratio, the stronger the bank.

By this measure, Deutsche Bank is in far worse shape than any major U.S. bank was before the 2008–2009 financial crisis. Business Insider reported two weeks ago:

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