Deutsche Bank is priced below $7 a share as the troubled German bank is looking to close down its trading operations in the US.

The bank has been in trouble for more than a decade as rogue traders got the bank in plenty of hot water over “repairing” troubled Italian banks with illegal and/or questionable financial maneuvers to give the clients a much more healthy balance sheet that what was true by using manipulation of derivatives and off balance sheet transfers as window dressing.

A greater fear on the Street is that if the Fed cuts rates on Wednesday, it could be a death blow to Deutsche since it will squeeze its profit margin even further.

Look for a bail in by the German government to come soon where shareholders will take the first loss. This is the opposite of a government bail out.

However, DB represents a far bigger threat to the stock markets than Lehman Bros. due to its humongous derivative counter-party exposure.

Now if you don’t think President Trump knows most of the problems with Deusche and its systemic reach to crater the markets, you are very much mistaken. Proof of this may come out when Wednesday when the Fed holds rates where they are and Trump does not go into a lather about needing a rate cut.