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Deutsche Bank AG (DB)

  • Sep. 9, 2013, 8:08 AM
    • Deutsche Bank (DB) may be partying with Japanese clients too much. The bank is being investigated by Japan's securities regulator for providing excessive entertainment to the country's pension fund executives, reports Reuters.
    • Previous to the regulatory action, Deutsche launched its own investigation into the matter and has stopped trying to sell to such pension funds as it reviews its procedures. Details of the alleged expenses are not yet available.
    | Sep. 9, 2013, 8:08 AM | Comment!
  • Sep. 6, 2013, 11:53 AM
    • Germany's banks are better capitalized and able to withstand shocks, says Moody's, lifting the outlook for the country's banking system to stable for the first time since the financial crisis. Both Deutsche Bank (DB +0.7%) and Commerzbank (CRZBY.PK +2.6%) - Germany's largest banks - have boosted capital this year, and the regional Landesbanken have consolidated and cut costs over the last few years.
    • Also leading to the boost is Moody's expectation for GDP growth to speed up next year - 1 to 2 percent in 2014 vs. just 0.4% predicted this year.
    • Moody's does warn about the downturn in the global shipping market as a potential threat - German lenders are historically big lenders to the sector (don't miss The Shipping Man).
    | Sep. 6, 2013, 11:53 AM | 1 Comment
  • Sep. 2, 2013, 7:23 AM
    • Deutsche Bank (DB) will only increase its dividend - which it lowered during the financial crisis - once it has met regulatory capital requirements, CFO Stefan Krause says.
    • Reiterate that Deutsche will cut €250B worth of assets from its balance sheet.
    • Shares are +2% in Frankfurt.
    | Sep. 2, 2013, 7:23 AM | Comment!
  • Aug. 26, 2013, 9:39 AM
    • "Rates businesses could have lower revenues over the next few years as European sovereign opportunities recede," says Citigroup (C) global head of rates Andrew Morton.
    • Revenues in rates trading at investment banks fell 36% in H1, according to research group Coalition. It's a big move in a segment which has become the banks' most lucrative since the financial crisis and makes up 20% of overall revenue, according to Boston Consulting Group.
    • "We expect revenues and headcount productivity to sharply decline as the business moves to more efficient trading venues," says Deutsch's Matt Spick. Those with the biggest market share like Citigroup, Barclays (BCS), and Deutsche (DB) should cope better than smaller rivals like Credit Suisse (CS), which has already cut capital allocated to the business and has announced more cuts are on the way.
    | Aug. 26, 2013, 9:39 AM | Comment!
  • Aug. 25, 2013, 2:45 AM
    • BATS Global Markets (BATS) is reportedly in advanced negotiations to merge with Direct Edge Holdings in an all-stock deal that would create the second-largest exchange operator in the U.S. in terms of shares traded, putting it behind the NYSE (NYX) but ahead of Nasdaq (NDAQ).
    • BATS CEO Joseph Ratterman is expected to become the head of the new firm, while Direct Edge boss William O'Brien would become president. The companies plan to continue operating all four of their U.S. stock-exchange platforms after the merger.
    • Both firms are profitable, with BATS earning EBITDA of $101M in 2012.
    • Direct Edge's owners include KCG Holdings (KCG), Goldman Sachs (GS), Citadel and the International Securities Exchange. Those of BATS include KCG also, as well as Bank of America (BAC), Citigroup (C), Credit Suisse (CS), Deutsche Bank (DB), JPMorgan (JPM) and Morgan Stanley (MS).
    | Aug. 25, 2013, 2:45 AM | 2 Comments
  • Aug. 17, 2013, 12:04 PM
    • A German regulator believes Deutsche Bank (DB) may have taken an inordinate amount of time to report suspicious transactions to authorities, Welt am Sonntag says.
    • According to the paper, the country's financial regulator BaFin is probing whether the bank's money laundering controls are properly setup.
    • While the maximum fine of €100K is a mere pittance to the global banking behemoth, DB could do without the bad press.
    • Investigations into the manipulation of interbank lending rates as well as questions surrounding the bank's U.S. mortgage securities business from years ago caused DB's Q2 results to suffer as it took a €630M charge for potential legal expenses.
    • Many also believe the bank is undercapitalized.
    • See also: EU banks must shed assets; FDIC vice chair says DB undercapitalized; DB seeks to bring leverage ratio in line
    | Aug. 17, 2013, 12:04 PM | 1 Comment
  • Aug. 16, 2013, 10:55 AM
    • Not ready to yet call it an ultimatum, German regulator Bafin sets an end of August deadline for submission of information needed to approve Deutsche Bank's (DB) sale of BHF Bank to a consortium headed by RHJ International, reports Reuters.
    • The sale of the Frankfurt bank was agreed upon in March 2012, but was originally rejected. Since then, RHJ has beefed up, bringing in additional investors, including BlackRock (BLK).
    • Among the information requested is how BlackRock might support BHF in a crisis. "The regulator doesn't want another problem case," says a source.
    | Aug. 16, 2013, 10:55 AM | Comment!
  • Aug. 16, 2013, 7:49 AM
    • Goldman Sachs (GS), Morgan Stanley (MS), and Deutsche Bank (DB) want to get a piece of the $1.5B-$2B stake sale ahead of what's expected to be an IPO next year, reports the FT.
    • Huarong is the largest of the four funds set up in 1999 to help clean up the last asset bubble there by removing about $230B in bad loans from the country's big 4 state-owned banks. The western banks want in amid concern about another wave of bad loans across China which would be manna for companies like Huarong.
    • The fund reportedly plans to sell a  15-20% stake in itself to set the table for an IPO - similar to plans for Cinda Asset Management, another bad loan vehicle.
    | Aug. 16, 2013, 7:49 AM | 1 Comment
  • Aug. 11, 2013, 12:49 PM
    • EU banks will need to reduce their balance sheets by €3.2T and raise nearly €50B in capital over the next five years in order to comply with Basel III, FT says, citing an RBS study.
    • The banks flagged as the "most in need of fresh capital" are Barclays (BCS), Crédit Agricole (CRARY.PK), and — not surprisingly — Deutsche Bank (DB).
    • Smaller banks will need to cut €2.6T in assets, a prospect which suggests lending to small businesses could dry up.
    • More: Deutsche to shed assets, FDIC vice chair says bank is undercapitalized.
    • Even more: Barclays to bridge capital shortfall with rights issue, CoCos.
    | Aug. 11, 2013, 12:49 PM | 8 Comments
  • Aug. 8, 2013, 4:39 AM
    • Blackstone (BX) has reportedly hired a number of banks to lead an IPO of Hilton Worldwide, which the private-equity firm took private in 2007 in a $26.7B leveraged buyout, one of the largest before the financial crisis. The deal included $7B in assumed debt.
    • The flotation is expected to take place in H1 next year.
    • The banks involved - which are so far Deutsche Bank (DB), Goldman Sachs (GS), Bank of America (BAC) and Morgan Stanley (MS) - are expected to help Hilton refinance $13B in debt.
    • The speculation comes as a rebound in demand for hotel rooms and not enough supply has led to a boom in the hotel sector.
    • Hilton's pro forma EBITDA rose 17% in H1; 2013 EBITDA is forecast to be 58% higher than in 2009.
    • The speculation also follows reports yesterday that Blackstone is looking to exit La Quinta Inns & Suites, a budget hotel chain.
    | Aug. 8, 2013, 4:39 AM | Comment!
  • Aug. 7, 2013, 1:11 PM
    • Currency trading has thus far escaped the regulatory scrutiny faced by most of the other large bank business lines. Combined with a jump in currency volatility this year, it's unleashed an intense fight for market share.
    • Bank of America (BAC), Goldman Sachs (GS), and Morgan Stanley (MS) - smaller players in FX - have stepped up their efforts to take business from traditional giants Deutsche Bank (DB), Barclays (BCS), and JPMorgan (JPM), according to those in the know. Smaller firms like BTIG, Newedge, FXCM, and Gain Capital (GCAP) have further fragmented the market.
    • The lack of regulatory zeal means banks can fund currency trading with less capital than other lines of business. FX contributed just 8% of FICC revenue in 2012, down from 36% 4 years earlier.
    • Average daily trading volume of currencies was $5.6T in June, up from $4.9T in May.
    | Aug. 7, 2013, 1:11 PM | Comment!
  • Aug. 1, 2013, 8:59 AM
    • Celgene (CELG) intends to offer, subject to market and other conditions, senior unsecured notes under a shelf registration statement.
    • Interest rate, maturity dates and other key terms of the offering to be determined at the time of pricing.
    • CELG will use the net proceeds from the offering for general corporate purposes, "which may include, without limitation, further development of Celgene's clinical and pre-clinical programs, capital expenditures, general corporate development activities, meeting working capital needs, share repurchases of Celgenes common stock and repayment of some or all of Celgenes outstanding commercial paper."
    • Barclays (BCS) Citigroup (C), Deutsche Bank Securities (DB) and J.P. Morgan (JPM) acting as joint book-running managers.
    • Source: Press Release
    | Aug. 1, 2013, 8:59 AM | Comment!
  • Jul. 30, 2013, 4:59 PM
    • Blackstone (BX) and Deutsche Bank (DB) are in "detailed discussions" to create and sell the first-ever bond backed by home-rental payments, reports the WSJ.
    • The initial product would bundle monthly rent checks on 1.5K-1.7K homes owned by Blackstone; the size of the deal would be about $240M-$275M.
    • Needless to say, many are wary about the speed with which thousands of homes have been purchased by Blackstone and other Wall Street firms looking to create an institutional product out of what has been a mom and pop industry forever.
    • Word is Greg Zuckerman is busily putting together a book proposal for The Greatest Trade Ever Part II - about a hedge funder 5 years from now who makes a ridiculous fortune shorting this paper.
    | Jul. 30, 2013, 4:59 PM | 1 Comment
  • Jul. 30, 2013, 3:10 PM
    • Legal costs for Deutsche Bank (DB -5%) were a drag with the bank taking a €630M charge for potential litigation arising from the Libor investigation and its U.S. mortgage business.
    • CFO Stefan Krause says the bank has hit its 3% targeted leverage ratio as demanded by EU regulations, but it's impossible to calculate how Deutsche fares under the newest proposals.
    • S&P Capital's Frank Braden maintains a Buy, but lowers his FY EPS estimate; he says capital improvements are tracking ahead of his expectations.
    • Earlier: Earnings report.
    | Jul. 30, 2013, 3:10 PM | Comment!
  • Jul. 30, 2013, 11:31 AM
    • An affiliate of MF Global sues, alleging 11 banks engaged in anticompetitive practices to keep the company out of the lucrative clearing business for swaps
    • It's the third U.S.lawsuit making such claims (previous), and the EU has also filed suit
    • Those charged: BAC, BCS, C, CS, DB, GS, MS, RBS, UBS
    • JPMorgan (JPM) is named as a co-conspirator, while the ISDA and Markit are named separately as defendants
    • One source suggests the 3 U.S. claims could be consolidated into one case
    | Jul. 30, 2013, 11:31 AM | 3 Comments
  • Jul. 30, 2013, 3:32 AM
    • Deutsche Bank (DB): Q2 pretax profit -18% to €792M, badly missing consensus of €1.3B. Net profit -49% to €335M vs forecasts of €767.6M. Revenue +2% to €8.2B.
    • Increases legal provisions by €630M to €3B and expects "settlements to accelerate in the coming quarters," although the bank doesn't provide details on which issues are set to be resolved.
    • Deutsche Bank plans to reduce assets to bring its leverage ratio to 3% and has identified €250B worth to cut. Shares -4% in Frankfurt. (PR)
    | Jul. 30, 2013, 3:32 AM | Comment!
Company Description
Deutsche Bank AG is an investment bank. It offers investment, financial and related products and services to private individuals, corporate entities and institutional clients around the world.
Sector: Financial
Country: Germany