After years of mismanagement, Japan’s Nomura and Germany’s Deutsch Bank are in deep trouble. As the charts below show, their stocks are at multi-year lows while the stock market is at near-record highs. Why should we worry? Both financial giants are tremendously overleveraged. They are servicing billions and trillions of dollars in swaps and derivatives. Since financial institutions globally are so closely linked via trading and other businesses, a market-forced restructuring, including massive asset sales, could spread like cancer to other institutions and the global markets.