TROUBLED Deutsche Bank will collapse and tear down the world's financial system, if US authorities refuse to relax a £10billion fine, according to financial commentator and investor Jim Rogers.
'Deutsche Bank could collapse the world financial system'
Germany's biggest lender is desperately trying to negotiate down the huge financial penalty imposed on the bank for mis-selling mortgage-backed securities.
So far the group's boss John Cryan has not been able to secure an agreement for a smaller fine.
There are only two paths from here, according to Mr Rogers.
He told Russia Today (RT): "Either Deutsche Bank goes bankrupt, which is going bring down the entire world financial system, or they are going to come up to some kind of compromise at a lower number."
And if Deutsche Bank does fails, it would mean the end of the European Union (EU), predicts Mr Rogers.
He said: "The EU would disintegrate, because Germany would no longer be able to support it, would not want to support it.
"A lot of other people would start bailing out; many banks in Europe have problems.
"And if Deutsche Bank has to fail – that is the end of it. In 1931, when one of the largest banks in Europe failed, it led to the Great Depression and eventually WWII. Be worried.
"Germany has been rightly telling everybody not to bail out their banks, but if they have to suddenly bail out their banks, then other countries will be furious and the politicians will have a field day."
Even without the fine, the lender is in trouble, said Mr Rogers.
He added: "If you look at its balance sheet you will see it has huge, staggering debts both on balance sheet and off balance sheet, which means their debts that they don’t reveal directly.
"It probably will survive if it has support, but otherwise we all are going to have huge problem in the next couple of years.
"I’ve told you before: you should be very worried. The western world, the world is going to have a lot of problems the next couple of years. Be worried."
According to the critic, the the US government is asked for such a big fine is because it's in debt.
He said: "They are desperate for money. They’ll try to get it anywhere they can. I can’t imagine that Deutsche Bank should be liable for $14 billion, but I’m not involved."
http://www.express.co.uk/finance/city/719564/Deutsche-Bank-bankrupt-could-DESTROY-EU-and-tear-down-world-economy-investor
