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Hoplertarum t1_jdob2da wrote

To discuss how to spend the bailout money guys, nothing to see here. Bullish 🥴

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qainin t1_jdocmaw wrote

Deutsche Bank is German.

They are under EU financial regulation that bans bailout.

That is stupid in my opinion, but the law is there.

If they try to use state or EU funds to rescue that bank, someone will sue, and it's headed for German constitutional court for the next ten years.

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Hoplertarum t1_jdodmqn wrote

Well, during COViD where these rules went out of the window and Lufthansa was essentially bailed out by German state.

When you have the president of the ECB on Friday essentially saying they will do anything to maintain ‘stability’, don’t blame me for being skeptical that they are not going to be bailed out.

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Mathiasdk2 t1_jdofpyc wrote

Not exactly true. It bans state-aid, but the state can lend them money, just like a lot of banks were saved during 2008/09, they just had to pay the loans back, or convert them to stocks at a favorable rate for the government.

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yldf t1_jdq8ukf wrote

They could also issue new stock for cheap that German government buys. They’ll probably be ok with 51% of voting power.

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Easystius t1_jdpu5fx wrote

Bailout is a no-no-word now. Backstop it is.

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AdministrationNo4611 t1_jdpu9g2 wrote

Bank is failing, Germany makes new bank, uses people money to buy the failing back and everything that's toxic; Put's toxic waste of a bad bank and the good stuff stays in the new bank.

Here, that's how you bailout

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Mundus6 t1_jdp5vmt wrote

They can still be bailed out by another bank.

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Hodorous t1_jdq5vq5 wrote

Since when EU regulation has had effect on Germany/France? Greece pay debts since Hans needs bratwurst.

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