We're gonna need a bigger bailout...

Just when you thought it was safe to catch a falling knife and that all the systemic fears in the world had been washed away by coordinated central bank manipulation, this happens...

Deutsche Bank stock price is retesting record lows as - just like Lehman - all the soothing words merely enabled a dead-cat-bounce to let some 'insiders' out with less pain.

As Deutsche itself notes: What explains the weakness in banks?

Banks’ performance has been significantly weaker than the relationship with credit spreads would have suggested. As a consequence, the relative P/E has dropped to the lowest level since 2000, while the P/B, at a 60% discount to the market, implies relative RoEs to fall back below the 2008 trough. The main explanation for banks’ underperformance is the sharp decline in 10-year Bund yields, with the resulting flattening of the yield curve putting further pressure on net interest margins. The current level of the oil price points to upside for inflation expectations and, hence, bond yields. Yet, while excessively bearish valuation levels and the scope for higher bond yields points to upside, we are nonetheless cautious on the outlook for banks, given downside risks for the credit market.

And since the easing jawboning stopped and the EU yield curve collapsed, EU banks have plunged back near record lows...