Global Banks Exposed as Counterparties to Deutsche Bank Derivatives

Global Systemically Important Banks (GSIBs) have vast exposure as counterparties to post-Herrhausen Deutsche Bank’s huge derivatives portfolio, and will incur sweeping losses if Deutsche Bank defaults.

Schiller Institute chairwoman Helga Zepp-LaRouche has made an urgent call for Deutsche Bank to be saved with a one-time financial infusion, and be reorganized to return to its original function as an exemplar of the German industrial bank, whose major purpose was to make low-interest loans for long-term global physical infrastructure building. This was exemplified in Alfred Herrhausen’s program to issue such loans to rebuild Poland in 1989.

Today, if Helga Zepp-LaRouche’s urgent proposal is not taken up, not only will Deutsche Bank fail, but widespread financial carnage will result in Europe, Asia, and the U.S. banks, and some will not survive.

A diagram in ZeroHedge, based on the June 30 IMF Report which called Deutsche Bank the most systemically risky bank, quantifies the exposure to Deutsche Bank’s risk, of banks on three continents, as highest, higher, and high, as follows:

* In Asia, most exposed to potential Deutsche bank defaults are, with largest exposure, Industrial and Commercial Bank of China, China Construction Bank, Mitsubishi; medium exposure: Bank of China, Sumitomo, and Mizuho Banks.

* In Europe, the largest exposures to Deutsche Bank are: HSBC, BNP Paribas, Barclays; medium exposure: Santander, Societe Generale, Credit Agricole, Royal Bank of Scotland, and Credit Suisse

* In the United States, the largest exposure is JPMorganChase; medium exposure: Citibank, Wells Fargo, Goldman Sachs, Morgan Stanley; and lesser exposure: Bank of NY Mellon and State Street Bank.