Deutsche Bank Could Transfer Financial Contagion: Simon Johnson
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Nov. 21 (Bloomberg) -- You’ve probably never heard ofTaunus Corp., but according to the Federal Reserve, it’s theU.S.’s eighth-largest bank holding company. Taunus, it turnsout, is the North American subsidiary of Germany’s Deutsche BankAG, with assets of just over $380 billion.
Deutsche Bank holds a large amount of European governmentand bank debt; it also has considerable exposure to lingeringreal estate problems in the U.S. The bank, therefore, couldbecome a conduit for risk between the two economies. But whichway is Deutsche Bank more likely to transmit danger -- to orfrom the U.S.?