Not long ago, Shah called Deutsche Bank “The Most Dangerous Bank in the World.”
Now, as the stock has lost a whopping 60% of its value over the past 12 months, one big question has surfaced: Will DB get bailed out?
On a recent episode of Varney & Co., Shah argued that it would. With 60 trillion in derivatives on its books, if the bank were to collapse, counterparties to those derivatives – all the big banks around the world – would follow.
This would make the collapse of Lehman Brothers look like a day at the beach.
Speaking of Lehman… the other big question hanging over the markets: Are we back to 2007?
Click below for Shah’s answer…