Today's Required Reading
Today’s required reading:
China Must Have the Courage to Save Less: As George Magnus of UBS points out, simply revaluing the renminbi won’t do the trick when it comes to reducing the imbalances between the U.S. and China. A nice commentary on the characteristics of their mating dance.
Deutsche Bank Set to Raise EUR 10.2 billion: Yes, the offer to acquire Postbank is a the driving factor behind this share offering, but the new global capital adequacy rules are also a factor. This offering – the largest ever by a German bank – could be precursor to capital raisings by large U.S. banks; I’ll explore that topic this week.
Goldman Shareholder Lagged CDs as Blankfein Earned $125 Million: Another reminder – if any was necessary – that investment banks do not make good long-term investments. It is the employees who skim the cream off the top.