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Famed Investor Gundlach Says Negative Rates Threaten to Decimate Banks

  • ‘Cannot save your economy by killing your financial system’
  • Deutsche would be saved, ‘but what about Credit Suisse?’
Jeffrey Gundlach. Photographer: Scott Eells/Bloomberg

Jeffrey Gundlach. Photographer: Scott Eells/Bloomberg

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Famed bond investor Jeffrey Gundlach said Deutsche Bank AG’s slumping share price highlights the impact of the negative-interest-rate policy in Europe on the region’s lenders and may help prompt central bankers to reconsider their approach.

“You cannot save your faltering economy by killing your financial system and one of the clear poster children for this is Deutsche Bank’s stock price,” Gundlach, 56, said at Grant’s Fall 2016 Investment Conference on Tuesday in New York. “If you keep these negative interest rate policies for a sufficient future period of time you are going to bankrupt these banks.”