Deutsche Bank chief John Cryan fired his latest salvo not at his usual target Mario Draghi and the ECB, but directly to the German people.
The chairman of the largest European bank told the press in a passion plea that if the ECB continues its negative interest rate policies, it could led to “fatal consequences” for savers and pension plans.
“The ECB’s policy is squeezing the margins of Europe’s struggling banks, making it harder for insurers to find profitable investments and dangerously distorting financial market prices,” Cryan told reporters.
Cryan pointed out that 90% of Germans have their savings in the bank and are getting no return on their investments.
Cryan has also faulted ECB chief Draghi for his policies of telling banks to increase reserves, yet the bank makes no interest on those reserves with negative returns on German sovereign debt trading below zero.
I’m not sure I have ever heard a bank chairman use the term “fatal consequences.” You could put Cryan’s comments in the column with other big name investors predicting dire consequences due to central bank policies.
Thursday morning we got news from both ends of the retail sector — Tiffany and Sears both reported horrible quarters.
Sales were down almost double digits at Tiffany year-over-year and Sears continues to lower sales comps quarter-over-quarter since hedgie Eddie Lampert took on the CEO role in 2013.
Tiffany blamed China, Lampert doesn’t comment. Yet it is more amble proof that the US consumer on both ends of the spectrum is pulling back and squirreling away the meager discretionary income they have for staple products.