Merkel Says "Nein" to Deutsche Bank Bailout – Here's How to Prepare for What's Next

The U.S. Department of Justice announced it's seeking a record $14 billion penalty against Deutsche Bank in relation to mortgage securities fraud in the run up to the global financial crisis that's roiled markets since 2007. Another naughty bank, another big fine. Regulators quietly charge banks and financial institutions with rules and policy violations all the time. Most of them are settled just as quietly after a bunch of legal wrangling, without causing so much as a blip in the headlines. So what's the big deal? Well, Deutsche Bank is facing a $14 billion fine at a time when the bank has "litigation reserves" of just €5.5 billion ($6.17 billion). It simply doesn't have the cash on hand to pay just the penalties sought by U.S. regulators as it stands today. What's more, that $14 billion fine stems from just one of the more than 7,000 ongoing legal cases, according to The Guardian. These problems are bad, but they pale in comparison to the problem no one's talking about... Tags: Banks To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post Merkel Says "Nein" to Deutsche Bank Bailout – Here's How to Prepare for What's Next appeared first on Money Morning - We Make Investing Profitable .