When one thinks of unstable, risky banking systems, the first thing that comes to mind are visions of insolvent, state-backed building - with or without long ATM lines - in China, Greece, Italy or, in recent times, Germany. However, according to the most recent report by the Bank for International Settlements, the country with the riskiest banking system is neither of these, and is a rather "unusual suspect."
The Germans are once again angry at the Americans over spying. Just a few years after Obama's infamous apology for hacking Merkel's phone, Germany's chief federal prosecutor announced plans to carefully examine documents from Wikileaks (related to a secret CIA cyber-spy hub in Frankfurt), and will launch an investigation if it sees concrete indications of wrongdoing.
Despite its widely telegraphed $8.5 billion public offering with another $2 billion expected to be raised from asset sales, Germany's biggest lender is down sharply this morning as much as 6.9% (currently 6.1% lower) as Wall Street analysts dig through the details of the bank's latest massive restructuring, which as reported yesterday seeks to undo many of the changes implemented by CEO John Cryan over the past two years (and which will lead to an 80% reduction in the bank's 2016 bonus pool).
Turkish President Recep Tayyip Erdogan blasted Germany on Sunday, accusing the government to reviving Nazi era ideology. Erdogan’s complaint comes after Germany barred Turkish ministers and government officials from attending rallies held by Turks living in Germany, as part of the campaign of constitutional reform referendum. Merkel’s government is desperate to prevent Turkish officials from meeting Turkish people living in Germany, fearing that they will persuade them to vote “the wrong way”.
Turkish President Tayyip Erdogan accused Germany of "fascist actions" reminiscent of "Nazi practices" in a growing diplomatic rift over the cancellation of political rallies aimed at propping support for him among the 1.5 million Turks living in Germany. Erdogan's latest outburst on Sunday took place days after German authorities withdrew permission for two rallies by Turkish citizens in German cities, at which Turkish ministers were to urge a "Yes" vote in a referendum next month on granting Erdogan sweeping new presidential, almost dictatorial according to some, powers.