(ZERO HEDGE) It has been over 7 years since the European Central Bank's key deposit facility rate was positive, and just a few weeks ago it was lowered to a record low of -50bps.
And during that time, European bank stocks have suffered greatly...
As Cornelius Riese, co-CEO of Frankfurt-based DZ Bank A.G. (Germany’s second-largest by assets), observed, negative rates indeed “have a huge impact on banks.” Riese ventured to offer some gentle criticism of Draghi & Co.’s grand policy experiment:
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“Maybe at the end of the story, in three to five years, we will notice it was a historical mistake.”
Well, it appears we are about to reach the vinegar strokes of that 'historical mistake', as Bloomberg reports, German banks are breaking the last taboo: Charging retail clients for their savings starting with very first euro in the their accounts.