No DoJ deal for Deutsche Bank
- 8 years ago
Deutsche Bank’s troubles continue to mount.
Its shares were down again on Monday with investors unhappy that it does not yet have an agreement with the US Justice Department over wrongdoing dating back to 2007. At one time the shares fell close to four percent.
Chief Executive John Cryan has just been in Washington for the International Monetary Fund and World Bank’s autumn meetings. Reportedly while there he met with Justice Department officials but was not able to negotiate down the $14 billion (12.54 billion euro) fine they have demanded.
Deutsche Bank shares fall after U.S. talks, creating knock-on effect for other lenders https://t.co/yvDuY39tXs pic.twitter.com/go15FXkEVk— Bloomberg (@business) October 10, 2016
In addition, the Financial Times has reported the European Central Bank gave Germany’s biggest lender special treatment in recent stress tests to see how European financial institutions would cope with a crisis.
The FT said money from the sale of some Deutsche Bank assets was included in its capital reserves even though that deal had not been done by the end of 2015, the official cut-off point for transactions to be included.
The sale of its stake in Chinese lender Hua Xia has still to be completed.
FT learns that Deutsche Bank was given special treatment in this summer’s EU stress tests https://t.co/Yvqdb7gP9Q pic.twitter.com/Wzbf6JLae9— Financial Times (@FT) October 10, 2016
Deutsche Bank is expected to issue new shares, sell assets, or both, once it knows the scale of the fine, to ensure that its capital ratio remains within regulatory limits.
It is struggling to restore market confidence. Its shares slumped when the $14 billion settlement figure was leaked but were already low as investors questioned whether Cryan had a credible plan to revamp the bank.
Terry Torrison, managing director at Monaco-based McLaren Securities, was nnot one of those who was looking for a speedy resolution to the settlement over the misselling of mortgage-backed securities.
Torrison said: “They were never going to sort out the US issues that quickly, and whatever happens, I still think they will need to have a rights issue.”
Its shares were down again on Monday with investors unhappy that it does not yet have an agreement with the US Justice Department over wrongdoing dating back to 2007. At one time the shares fell close to four percent.
Chief Executive John Cryan has just been in Washington for the International Monetary Fund and World Bank’s autumn meetings. Reportedly while there he met with Justice Department officials but was not able to negotiate down the $14 billion (12.54 billion euro) fine they have demanded.
Deutsche Bank shares fall after U.S. talks, creating knock-on effect for other lenders https://t.co/yvDuY39tXs pic.twitter.com/go15FXkEVk— Bloomberg (@business) October 10, 2016
In addition, the Financial Times has reported the European Central Bank gave Germany’s biggest lender special treatment in recent stress tests to see how European financial institutions would cope with a crisis.
The FT said money from the sale of some Deutsche Bank assets was included in its capital reserves even though that deal had not been done by the end of 2015, the official cut-off point for transactions to be included.
The sale of its stake in Chinese lender Hua Xia has still to be completed.
FT learns that Deutsche Bank was given special treatment in this summer’s EU stress tests https://t.co/Yvqdb7gP9Q pic.twitter.com/Wzbf6JLae9— Financial Times (@FT) October 10, 2016
Deutsche Bank is expected to issue new shares, sell assets, or both, once it knows the scale of the fine, to ensure that its capital ratio remains within regulatory limits.
It is struggling to restore market confidence. Its shares slumped when the $14 billion settlement figure was leaked but were already low as investors questioned whether Cryan had a credible plan to revamp the bank.
Terry Torrison, managing director at Monaco-based McLaren Securities, was nnot one of those who was looking for a speedy resolution to the settlement over the misselling of mortgage-backed securities.
Torrison said: “They were never going to sort out the US issues that quickly, and whatever happens, I still think they will need to have a rights issue.”