A business shows many signs of failure. The first of course is poor client relationships. Clients leave, the business still talks bravely. Slowly as the clients leave the cash flow dries. Market murmurs imminent death, but the management is still brave in its talk.

Some of the key people leave.

There is a cash crunch. The cash crunch is easily met with some borrowings. Past assets are flogged. The aircrafts are ‘sold’ and bought back on lease / hire purchase. After all you do not need the depreciation one argues. True more cash is available to pay salaries.

Then more senior people leave. Clients start complaining about service.

It gets worse a competitor takes away a team leader along with the most productive team.

Company uses short cuts. Fight with the Regulators. Fines. Penalties, COURT FEES.

one fine day it closes down. Read on if you  wish to



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  1. Scary…really scary…thanks a lot for sharing.

    At one point, it was estimated that Deutsche Bank had a staggering 75 trillion dollars worth of exposure to derivatives. Keep in mind that German GDP for an entire year is only about 4 trillion dollars. So when Deutsche Bank finally collapses, there won’t be enough money in Europe (or anywhere else for that matter) to clean up the mess.

    If Deutsche Bank were to totally collapse, it would be a financial disaster far worse than Lehman Brothers. It would literally take down the entire European financial system and cause global financial panic on a scale that none of us have ever seen before

  2. Just read and commented on Praying for a Crash!

    And now this, troubling and interesting, if it happens it will be the most major event for the markets, as well as the best opportunity for young investors to shore up equity.

    But Deutsche Bank would really be a huge deal. Luckily Deutsche is not a very big player in India, right?

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