Morgan Creek’s Pomp Suggests Bitcoin Buying Out Failing Deutsche Bank Worth $14 Billion
Anthony Pompliano is one of the most, if not the most influential figures in the crypto ecosystem when it comes to sharing breaking news and futuristic viewpoints. He is the co-founder of a massively successful asset management firm Morgan Creek Digital and is followed by around a quarter of a million people on Twitter alone. He recently Tweeted saying that it is possible for Bitcoiners to buy and revive the failing Deutsche Bank.
Today @DeutscheBank is valued at just over $14 billion and the stock price is in a free fall.
If we could raise the capital, it would be interesting to purchase the failing bank and revive it by embracing Bitcoin.
Crazier things have happened 🔥
— Pomp 🌪 (@APompliano) May 31, 2019
Regarding the situation of the Bank, FT writes:
“Deutsche Bank is trapped in purgatory. Every consecutive quarterly drop in revenue, new money laundering investigation, subsequent fall in share price, a promise of “tough cutbacks”, all seemingly blend into one narrative of an unyielding loss of control that has dragged on for years.”
Back in January 2017, the bank agreed to pay a little over seven billion dollars ($7.2billon) to U.S Department of Justice as a settlement for being involved in the toxic-mortgage securities and for its contribution in the 2008’s global finical meltdown. Additionally, they were even involved in money laundering activities.
They are even exploring the idea of a merger with UBS Group. In theory, a deal would marry Deutsche Bank’s fixed-income focus with UBS’s bigger equities business. It would also bring together UBS’s wealth management prowess with Deutsche Bank’s access to German entrepreneurs. Deutsche Bank shares have fallen 34% over the past year, giving it a market capitalization of $14 billion, while UBS is valued at $44 billion.
However, Pomp has an idea which might be a better solution. He thinks that Bitcoiners can collectively get together to pull in $14 billion dollars, which represents 10% of the market cap of Bitcoin.
The possibility, even though ludacris, has some ground realities. French banking giant, BNP Paribas released a report where they discussed the technology behind cryptocurrency and how it could lead to making the traditional banks redundant. It should be considered as an invention like the steam or a combustion engine, that has the potential to transform the world of finance and beyond.