Deutsche Bank - The Best Value In Banking?
Tim Travis • 37 Comments
Tim Travis • 37 Comments
Deutsche Bank Is A Good Buy If You Believe In Europe
Ashleigh Rogers • 16 Comments
Ashleigh Rogers • 16 Comments
Fri, Jun. 24, 5:22 AM
- Banks across the globe are taking a serious beating post-Brexit.
- Much of the regulations that govern the financial services industry and allow for cross-border transactions are at the EU level, meaning regulatory changes will need to be negotiated and altered from their current financial infrastructure.
- Banking stocks premarket: BCS -25%, RBS -24%, LYG -27%, HSBC -10%, DB -16%, UBS -10%, C -7.5%, BAC -7%, JPM -6%, WFC -5%, GS -5%, MS -5%.
- ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, SEF, FNCL, FXO, KBWB, QABA, RYF, FINU, KBWR, KRU, RWW, FINZ, KRS, XLFS
Wed, Jun. 22, 9:32 AM
- The deal with the German works council will allow Deutshce Bank (NYSE:DB) to close about 200 of its 723 branches in that country, reports Reuters.
- It's part of Deutsche's (DB) major overhaul in which 9K jobs will be cut, with 4K of those in Germany. Details could be announced as soon as tomorrow, according to the report.
Mon, Jun. 20, 9:16 AM
Thu, Jun. 16, 9:37 AM
- "The trajectory of European banks is really worrying," says a fund manager. "If banks are a main indicator of the health of a region, it gives you another reason to think ‘what the hell is going on in Europe?”’
- Deutshce Bank (DB -3.5%) has retreated to the lowest since at least 1992, when Bloomberg began collecting the data, and Credit Suisse (CS -2.3%) is now off about 50% this year.
- The two lenders are in "restructuring mode and have capital issues," says one analyst. Doug Kass isn't as charitable, telling Bloomberg, Deutsche's issues are more significant than those of AIG in 2008. In the U.S., says Kass, Deutsche would be considered a failed bank.
Fri, Jun. 10, 1:11 PM
Wed, Jun. 8, 9:12 AM
- Quintin Price had been on medical leave for the last two months, and this week submitted his resignation, effective June 15.
- Formerly an executive with BlackRock, Price had joined Deutsche (NYSE:DB) only this past January as part of CEO John Cryan's overhaul which made the asset management division one of the bank's four main operating units.
- He went on medical leave in April for unspecified reasons.
- Cryan took over Price's duties on the bank's management board, and Jon Eilbeck took over his day-to-day job. Those roles will continue while Deutsche looks for a permanent replacement.
Tue, May 31, 9:53 AM
- With the IPO window apparently shut, Deutsche Bank (NYSE:DB) is mulling "creative" solutions to exit its German consumer unit, says CEO John Cryan, speaking at a conference.
- “We’re either hoping for a market recovery there or looking for slightly more creative ways to exit the division. But the bank is for sale - so if you know anyone who wants to buy a German retail bank, let me know.”
- The Postbank exit is a key leg of Cryan's plans to boost capital, and he hopes to be able to sell a majority stake by the end of next year. Deutsche acquired the operation in 2010 as part of a previous CEO's plan to cut dependence on investment banking.
Wed, May 25, 10:28 AM
- About half of all share sales by public companies this year have been block trades, writes Corrie Driebusch, versus an average of about one-third over the past five years, and just one-fifth over the past decade.
- To review, a block trade involves a bank buying a large chunk of stock from a company or its P-E backers at a discount, in the hopes of unloading it piece-by-piece later that day at a markup.
- The increase in block trades, of course, comes as business slows at any number of other bank profit centers, particularly fixed-income trading.
- For the most part, block deals have mostly proved profitable this year, with an average one-day return of 0.5%, according to Dealogic. The leaders in U.S. block trades this year are Credit Suisse (NYSE:CS) and JPMorgan (NYSE:JPM), with Deutsche Bank (NYSE:DB), Bank of America (NYSE:BAC), and Citigroup (NYSE:C) also notable participants.
Tue, May 24, 8:05 AM
- "We have enough capital to repay all of our debt four-times over," says Deutsche Bank (NYSE:DB) CEO John Cryan, responding to today's credit-rating cut from Moody's. "We are very disappointed."
- "The plan they’re trying to execute is a good plan for the bondholder in the long run, but they face some pretty challenging headwinds when you look at the current operating environment,” says Moody's Peter Nerby, in a Bloomberg interview.
- Key ratings at Deutsche all remain investment-grade, reminds CFO Marcus Schenck.
- Shares are marginally higher in European action.
Tue, May 24, 3:36 AM
- Citing a lack of confidence in the lender's restructuring plan, Deutsche Bank (NYSE:DB) had its credit rating cut to Baa2 by Moody’s Investors Service, leaving the grade two levels above junk.
- "The last several quarters have been weak, and substantial operating headwinds... will challenge the firm," the agency said in a statement.
- The downgrade follows a new SEC investigation into whether Deutsche Bank inflated the value of certain mortgage-backed securities and masked losses around 2013.
Mon, May 23, 3:10 PM
- The ruling from the Court of Appeals for the Second Circuit reinstates previously thrown out private antirust lawsuits against 16 banks for allegedly rigging Libor.
- There are a number of groups of plaintiffs, including Baltimore, Houston, and San Diego.
- For now, the case goes back to lower court for further proceedings. If the suits are successful, the bill to banks could be several billion dollars.
- Roughly a dozen financial companies have already settled official charges of rate manipulation, with some pleading guilty to criminal charges.
- The defendants in line from today's ruling include: Bank of America (NYSE:BAC), Barclays (NYSE:BCS), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), HSBC, JPMorgan (NYSE:JPM), Lloyds (NYSE:LYG), Royal Bank of Canada (NYSE:RY), SocGen (OTCPK:SCGLY), UBS, and Royal Bank of Scotland (NYSE:RBS).
Mon, May 23, 1:07 PM
- The SEC is looking into whether the beleaguered bank inflated the value of MBS to mask losses in 2013, reports Bloomberg.
- Delaying taking marks bonds would have boosted earnings for at least a few quarters that year as fixed-income markets underwent a QE-withdrawal-related meltdown.
- Being looked at are positions overseen by Troy Dixon who then ran Deutsche's (NYSE:DB) trading for agency MBS. He exited the bank in 2013 and started a hedge fund.
- Under relatively new leadership, Deutsche is trying to get from under a never-ending wave of probes. "I am personally investing time to resolve successfully and speedily open regulatory and legal cases,” said CEO John Cryan in a note to employees earlier this year.
Mon, May 23, 5:40 AM
- European banks have spent a third of their net profits on provisions to cover expected legal costs since the start of the economic crisis, according to the ECB.
- The lenders set aside $160B in provisions for legal costs between 2008 and 2015, and could have put away another $50B for litigation fees at the end of last year.
- For firms such as Deutsche Bank (NYSE:DB), UBS and Lloyds (NYSE:LYG) provisions by far outstripped net profits over the period.
Fri, May 20, 2:09 AM
- Deutsche Bank (NYSE:DB) is investigating a series of trades that may have improperly generated millions of dollars in personal profit, some at the bank’s expense, for a handful of current and former employees, WSJ reports.
- Meanwhile, 51.9% of investors voted against the German lender's executive pay plans at the bank's shareholder meeting, the latest in a wave of C-suite remuneration disputes that have hit other major companies.
Thu, May 19, 1:18 PM
- CEO John Cryan is the right man to shrink the balance sheet further and bring to an end a seemingly endless series of compliance issue, says Ingo Speich, a fund manager at Union Investment, one of Deutsche's (DB +0.2%) largest shareholders. "Deutsche Bank is a restructuring case after a decade of mismanagement ... At the end of the day, there’s no other way for Deutsche Bank than to shrink itself back to health."
- Countering chatter that he's seeking even deeper investment banking cut than have already been tipped, Cryan says the bank is "unreservedly" committed to its securities-trading operation. Global markets, he says, “represents an indispensable element of our strategy ... The only way we have of providing our corporate clients with capital market expertise and global access.”
- The bank will concentrate its efforts on the one-third of clients which already produce 98% of revenues.
Thu, May 19, 4:56 AM
- Despite formally stepping down at the lender's annual general meeting later today, Deutsche Bank (NYSE:DB) co-chief executive Juergen Fitschen will continue to work for the bank in a different role.
- Fitschen will concentrate on the German and Asian businesses, and support the institution with his "key corporate client" contacts, Deutsche Bank said in a statement.
Deutsche Bank AG provides corporate banking and investment services. It operates through the following segments: Corporate Banking and Securities (CB&S), Global Transaction Banking (GTB), Asset and Wealth Management (AWM), Private and Business Clients (PBC), and Non-Core Operations Unit (NCOU).... More
Industry: Foreign Money Center Banks
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