Deutsche Bank won't fail but another crash is coming, leading wealth manager tells George Galloway

Deutsche Bank: 'They should have let the banks go down in 2008', says leading economist

Deutsche Bank is facing a fine of £11 billion (Getty)

Monday, October 3, 2016

The world is headed for another financial meltdown, economist and wealth manager Jonathan Davis told George Galloway.

Deutsche Bank is facing a fine of £11 billion ($14 billion), over mis-selling mortgage-backed bonds before the 2008 financial crisis. Shares also tanked last week as many feared the fine could bring the bank down.

Davis, who runs his own eponymous wealth management company, revealed his views on the state of the banking system, telling talkRADIO's star presenter "[banks] have got to the stage where they have so many potentially bad trades in their accounts, that eventually when one of them blows up, it blows up the whole system.

"The whole banking system is a massive spiders web integrated globally."

Davis said it's "extremely unlikely" Deutsche itself will go bust, but told Galloway "it's highly likely in the next year or so that there will be a little minnow bank somewhere, Portugal, Ireland, Italy, who knows, and it will be the proverbial butterfly. There's no question in my mind, the cracks in the system are widening every day. 

"They should have sorted the problem out in 2008, they should have let the banks go down, they were reckless lenders, thus they should have been allowed to fail."

Listen to the full interview to find out more