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Thu, Jan. 7, 8:44 AM
- It's the third upgrade this month for Deutsche Bank (NYSE:DB) after Barclays' Jeremy Sigee boosts to Overweight from Equal Weight, arguing the stock is overly discounted and equity raises are no longer necessary.
- JPMorgan's Kian Abouhossein and Amit Ranjan - who rate Deutsche an overweight - also believe share count dilution risk is off the table.
- Newish CEO John Cryan is trying to avoid more capital raises by selling assets, cutting costs, and (likely) suspending the dividend.
- Not all are convinced, including Citi's Andrew Coombs, who calls a capital raise this year "highly probable."
- Deutsche is lower by 36% since its early-April 2015 peak. It's down 2.5% premarket amid a sizable global stock selloff.
Thu, Jan. 7, 4:34 AM
- European banks are set to cut back equities trading and research teams in Asia, as global cost-cutting reaches a region where a drop in Chinese trading volumes and local competition have hit profits.
- Bankers and headhunters told Reuters that BNP Paribas (OTCQX:BNPQF), Deutsche Bank (NYSE:DB) and Barclays (NYSE:BCS) are among lenders likely to slash their workforce, setting the tone for a tough 2016.
- Ten of Europe's largest banks already announced 130K job cuts since last June.
- Previously: How many bank jobs vanished since the financial crisis? (Dec. 31 2015)
Dec. 31, 2015, 6:32 AM
- Announced cuts in the fourth quarter totaled at least 47K, following 52K lost jobs in the first nine months of 2015. That would would put the aggregate figure since 2008 at about 600K, according to Bloomberg.
- Staff reductions at some of the world's biggest banks are still far from over. Notables: Deutsche Bank (NYSE:DB) plans to slash 26K positions by 2018, UniCredit (OTC:UNCFY) will eliminate about 18,200 positions, and Citigroup (NYSE:C) plans to eliminate at least 2,000 more jobs next year.
Dec. 28, 2015, 9:51 AM
- Deutsche Bank (DB +0.1%) has agreed to sell its 19.99% stake in China's Hua Xia Bank to PICC Property and Casualty for between 23B-25.7B yuan, depending on the exchange rate.
- "This sale will strengthen the capital position of Deutsche Bank and we will make further progress on implementing our strategy," CFO Marcus Schenck said.
- If the transaction is approved by regulators, it will have a "positive financial impact," and would improve DB's common equity tier 1 capital ratio as of the end of September by between 30 and 40 basis points.
Dec. 25, 2015, 4:50 AM
- Commerzbank (OTCPK:CRZBY) is suing four banks in the U.S., claiming that they failed to properly monitor billions of dollars in toxic MBSs acquired by the German lender before the 2008 financial crisis.
- BNY Mellon (NYSE:BK) and units of Deutsche Bank (NYSE:DB), Wells Fargo (NYSE:WFC) and HSBC (NYSE:HSBC) were named in the lawsuits.
Dec. 22, 2015, 3:50 AM
- Sources say Deutsche Bank (NYSE:DB) has identified another $4B in suspicious transactions related to its Russian operations, in addition to the $6B in mirror trades it already flagged.
- DB shared its findings with international authorities in September, sources say. The U.S. DOJ was previously reported to be looking into whether Deutsche Bank’s handling of the mirror trades violated U.S. anti-money laundering rules. It has been advised of the new suspicious trades as well.
- In October, DB said it increased its litigation reserves by €1.2B, mainly to cover possible lawsuits over its Russia operations.
- Source: Bloomberg
Dec. 16, 2015, 8:26 AM
- Even with oil crashing and economic growth in The Kingdom slowing, Deutsche Bank (NYSE:DB) expects record performance at its Saudi operation this year, according to the unit's CEO Jamal Al Kishi.
- Among the deals this year was a 2B riyal ($530M) bond for Riyadh's Arab National Bank and a $10B loan for Saudi Aramco (Deutsche was among those banks participating).
- Deutshce employs about 80 in Saudi Arabia and this year will be the 4th-largest earner of investment banking fees in the Middle East, up from 5th a year ago.
- The Saudi head is talking a good game, maybe hoping his unit escapes the cost-cutting knife being wielded by new bank CEO John Cryan.
Nov. 25, 2015, 10:21 AM
- General Electric (GE -0.7%) has completed the sale of its Australia and New Zealand consumer finance business, representing aggregate ending net investment of approximately $4.3B, to a consortium made up of Varde Partners, KKR (KKR -0.2%) and Deutsche Bank (DB +0.6%).
- "Combined with the recently announced agreement to sell our commercial lending business in A&NZ, this is a big step in the complete exit of GE Capital from the region," said Keith Sherin, GE Capital chairman and CEO.
- Previously: Investor group to buy GE Capital consumer finance arm for $6.3B (Mar. 15 2015)
Nov. 23, 2015, 4:32 PM
- "I think people in banking are paid too much," says newish Deutsche Bank (NYSE:DB) co-CEO John Cryan. "Many people in the sector still believe they should be paid entrepreneurial wages for turning up to work with a regular salary, a pension and probably a health-care scheme and playing with other people’s money."
- Call it a "warning shot," says Jason Kennedy, the head of recruitment firm Kennedy Group. With the river of fines likely not ending anytime soon, Cryan's first priority is to build capital, not pay employees, says Kennedy. "Christmas has been cancelled."
- Deutsche has previously said it would delay bonus announcements until March, presumably to 1) give the bank time to get in a lot of layoffs, and 2) to let those spared know bonuses are going to be lame or nonexistent.
Nov. 12, 2015, 8:14 AM
- New co-CEO John Cryan is splitting Deutsche's (NYSE:DB) investment bank into two units - one focused on trading, and the other on corporate finance and transaction banking.
- Former JPMorgan executive Jeff Urwin - who joined the bank last year - is running the new corporate and investment banking division.
- 27-year Deutsche veteran Miles Millard - who a year ago was appointed as co-head of corporate finance in Europe - has left the bank.
- All primary debt and treasury businesses are being brought together under Mark Fedorcik, head of debt capital markets.
- James McMurdo has been promoted from CEO of the Australia and New Zealand operation to become head of CIB in Asia Pacific.
- Former Goldmanite Alasdair Warren will join DB as head of CIB for EMEA in the spring.
- Veteran U.S. P-E adviser John Eydenberg is becoming vice-chairman of CIB in the Americas.
- One big hole left to fill: A new head of global M&A following the exit of Henrik Aslaksen.
- Source: FT
Nov. 9, 2015, 4:24 AM
- The Financial Stability Board has published new rules that aim to stop banks from becoming "too big to fail," confirming its final proposals for Total Loss Absorbing Capacity, or TLAC.
- Under the plan, large lenders will have by January 2019 to hold a financial cushion of at least 16% of their risk-weighted assets in equity and debt that can be written off. That requirement will gradually increase, reaching 18% of assets weighted by risk by January 2022.
- The FSB will put the rules, which will apply to the world's top 30 banks, to the G20 later this month.
Nov. 2, 2015, 10:34 AM
- Part of Deutsche Bank's (DB +2.9%) major restructuring announced by CEO John Cryan last month is the new role of head of corporate and investment banking for Europe, the Middle East and Africa. According to Reuters, Alasdair Warren, co-head of Goldman's P-E advisory business, has been tapped for the new Deutsche position.
- Warren joined Goldman in 2005 and was named a partner three years later.
- Sources say he'll start at DB next year after six months gardening leave.
Oct. 29, 2015, 9:13 AM| Oct. 29, 2015, 9:13 AM
Oct. 29, 2015, 4:14 AM
- Big woes have just hit Deutsche Bank (NYSE:DB). The lender posted a €6B ($6.6B) net loss for the third quarter, scrapped its dividend for the next two years and announced plans to exit 10 countries and reduce its workforce by 35,000 employees.
- The move follows a recent writedown at its investment bank and the removal of three of the bank's eight board members.
- A sanctions settlement may also be in the making. As early as next week, Deutsche is expected to pay at least $200M to resolve investigations into its dealings with countries like Iran and Syria .
Oct. 19, 2015, 2:29 PM
- Calling into question the bank's "four eyes principle" meant to prevent such foul-ups, a junior member of Deutsche Bank's (NYSE:DB) forex sales team last summer accidentally processed the payment of $6B to a hedge fund.
- Source: FT
- Deutsche recovered the money the next day, though the Fed, ECB, and the U.K.'s FCA were notified. Insiders say such mistakes are surprisingly common, but ones of this size are unusual.
- Meanwhile, the bank is one of Europe's big gainers today after announcing a sweeping overhaul which includes the separation of the investment bank into two units.
- “Our cost base is swollen by poor and ineffective processes, antiquated and inadequate technology, too many tasks being completed using manual labor and, too frequently, unsuccessful investments in our infrastructure," said new CEO John Cryan last July.
Oct. 19, 2015, 2:36 AM
- Deutsche Bank (NYSE:DB) is splitting its investment bank into two units as part of a sweeping overhaul that will send several key executives packing.
- The move will see the separation of Deutsche's Corporate Banking and Securities division into one group focused on corporate finance and investment banking and the other on sales and trading.
- Who's being shown the door? Colin Fan, the bank's co-head of investment banking, and Michele Faissola, head of the bank's asset management business.
- Deutsche is also abolishing its group executive committee, which is made up of 19 senior managers, and streamlining how its main units are represented on the management board.
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