The major averages enter the final hour with modest losses on little and not overly significant data. The Philadelphia Fed regional manufacturing survey fell 14.5 points to 19.9 in June on weakness in new orders and the average work week, that said 19.9 is still a solid reading.
Personal Income gained 1.1% in the first quarter and 4.3% from a year ago as per the Bureau of Economic Analysis. At the regional level the Southwest and Rocky Mountains posted the strongest gains up 1.3% each. The Western region produced a weak advance of just .9%.
Deutsche Bank goes from bad to worse. After recently making the FDIC troubled bank list it suffered a significant trading loss some 12 times its VaR or Value at Risk, it’s highly unusual for a bank to suffer a loss of 2-3 times VaR, let alone 12. Additionally Deutsche Bank has seen its share price fall some 85% since the previous crisis and unlike a number of other banks that recovered in the period since, Deutsche Bank hasn’t. Firmly in the too big to fail or jail crowd this bank is displaying alarming and growing signs of financial instability and poor internal risk controls ala Lehman Brothers and Bear Stearns just prior to the previous crisis.
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