Deutsche Bank shares plunge as cost to insure against default spikes
SIMONE DEL ROSARIO: we’re talking about a real pressure cooker situation when it comes to the banking industry across the globe, Credit Suisse has specific demise seems tied to the annual report that came out last week that declared the bank had material weakness and its financial reporting. And with the sentiment going on with banks, it was just a terrible timing for them. Do you think that there are more institutions out there that have cracks like this that will become casualties of the banking turmoil happening?
HAL LAMBERT: Well, sure, I mean, Deutsche Bank is one from a global standpoint that has had trouble for years that you could almost put in a similar category, meaning they’ve just had problem after problem like Credit Suisse has. So I don’t know whether they have a risk of liquidity problem right now or not. But but they’re certainly under a lot of pressure. And then if you look at the United States, I mean, there’s about 4000 banks in the United States. So you know, I read that there’s about 200 of those that could have some problems. You’ve got to figure with that number. You’re going to have one or two at least more banks that are going to have similar problems to Silicon Valley. And then what’s the, what’s the Fed going to do? Are they going to let depositors at those banks lose their money and start picking winners and losers at the regional bank level, you know that that’s a real problem that that will create a lot of uncertainty around the US system as well.