Why Deutsche Bank is on the ropes

Investors and regulators are engaged in a boxing match over the fate of Deutsche Bank.
So far, the markets have the upper hand, and Europe’s largest bank is reeling from their blows. The final outcome will determine whether the world’s financial system is about to experience another heart-stopping moment, or just another bump in a tortuous road to safety.

In one corner of the Deutsche bout stands the complex regulatory infrastructure built to avoid a repeat of the taxpayer bailouts of banks seen in the 2008 global financial crisis. It has many bells and whistles designed to address the weaknesses exposed by the ruinous events of eight years ago: “stress tests” of banks’
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