King of Foreclosures is facing its own karma

Deutsche Bank (DB -2%) is "horribly undercapitalized" with "no margin for error," the worst of...

• Friday, June 14, 4:35 PM ET
  Deutsche Bank (DB -2%) is "horribly undercapitalized" with "no margin for error," the worst of all global banks based on at least one measurement of leverage, says FDIC vice chairman and former Fed maverick Thomas Hoenig. Stefan Krause, the bank's CFO, says the analysis is inaccurate, pointing to the Basel framework. That's Hoenig's point; Basel allows banks to appear well-capitalized when they're not. 
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•   They didn't just raise a few billion because they 'wanted to'.
  
  From what i hear on the ground, one mis-step and their equity capital is wiped out.
  
  Two mis-steps and the world has a HUGE problem. But are they any different than Socgen, CitiBank, or Barclays? We changed the accounting to 'ignore', but that didn't change the fundamentals.  
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• Sit back and wait,  Deutsche Bank is about to start recieving the Karma it so deserves.