Dan Davies on What Deutsche Bank Needs to Do

The transcript discusses the challenges of driving a firm like Deutsche Bank towards failure, emphasizing the difficulty due to its significant role in Europe and Germany. It highlights the importance of early capital raising to avoid financial distress. The advice includes converting bonuses to stock and securing large investors to stabilize the bank's position.

What is one of the main challenges in driving a firm like Deutsche Bank towards failure?

• The firm has too many competitors.

• The firm is too small to impact the market.

• The firm has no significant market presence.

• It is difficult to force the firm to raise capital.

In a hypothetical scenario, what would Deutsche Bank rely on for funding if no one else was prepared to fund it?

• The World Bank

• Private investors

• The European Central Bank

• The International Monetary Fund

What is a key piece of advice given to Deutsche Bank to stabilize its financial situation?

• Delay raising capital to avoid market panic.

• Increase short-term borrowing.

• Raise capital early and involve large investors.

• Focus on cutting operational costs.

What is suggested as a method to boost market confidence in Deutsche Bank?

• Pay bonuses in newly issued stock.

• Announce a merger with another bank.

• Close several branches.

• Reduce the number of employees.

What could potentially happen to Deutsche Bank's share price if they commit to a capital increase?

• It could decrease significantly.

• It could show surprising behavior due to short interest.

• It could become irrelevant.

• It could remain stable.