Germany caused the euro-zone sovereign debt crisis as a way to prevent the collapse of its own banking system, a senior ally to former prime minister Silvio Berlusconi claims....
"Mr. Brunetta sought to link allegations that Deutsche Bank AG (DB) hid potential derivative losses from regulators to the bank's large-scale sale of sovereign bonds issued by peripheral euro-zone nations, including Italy.
The U.S. Securities and Exchange Commission is investigating allegations made by two former traders. Deutsche Bank has denied the claims.
Mr. Brunetta said that German bund yields had been inching up in early 2011, highlighting fears of the solvency of Germany's banks. He claimed the banks, "probably with the implicit support of Berlin, decided to transfer the potential crisis of their own private banking system on to countries considered the weakest in the euro area."
"As yields rose in peripheral countries, they fell sharply in Germany, allowing Ms. Merkel to seek to "create a hegemony over the euro zone" and turn the focus from banking to public finances, Mr. Brunetta said, describing the operation as "almost a victory in the third world war."