What's your position on ?
Why are you ish?
You voted ish on Vote again
Posts appear on the My Feed page of subscribers to this ticker
Today, 2:26 PM
- Amid growing concerns about the bank's financial health, the FT reports Deutsche Bank (DB -2.4%) is "considering buying back several billion euros of its debt." Shares have pared their Tuesday losses following the report.
- The FT adds the buyback is expected to focus on senior bonds, of which Deutsche had €50B ($56.5B) as of September. Contingent convertible bonds, the subject of much recent investor concern, aren't expected to be involved.
- Bank debt worries have led to surging CDS prices in recent weeks. The FT states a CDS for Deutsche's 5-year senior euro debt was trading at 242 bps today, its highest level since the end of the 2011 eurozone crisis.
- Earlier: Deutsche CEO says company is "rock-solid"
- Yesterday: Deutsche Bank at record low as fear over European banks grows
Today, 8:31 AM
- Deutsche Bank (NYSE:DB) co-CEO John Cryan seeks to reassure employees about the bank's finances, a day after shares sank nearly 10% amid investor concerns about the bank's capital position, but shares -2.3% premarket.
- DB "remains rock-solid" with a strong capital and risk position, Cryan says, while adding that "we will almost certainly have to add to our legal provisions this year but this is already accounted for in our financial plan."
- "On Monday, we took advantage of this strength to reassure the market of our capacity and commitment to pay coupons to investors who hold our Additional Tier 1 capital," Cryan says; analysts have cast doubt on whether DB could make optional coupon payments on its CoCo bonds in 2017 if losses in 2016 turned out worse than expected.
Yesterday, 2:24 PM
- It is the European banks and contagion concerns that are freaking out the markets today - not just the Fed, China and crude oil - according to David Rosenberg, noting that some of the European banks are trading at 2008 crisis levels after the group has tumbled 18% YTD vs. 11% for the STOXX 600 index.
- European financial firms are taking a beating amid fears of "a chronic profitability crisis that makes it impossible for banks to build up barely-adequate capital bases," WSJ reports.
- Deutsche Bank (DB -9.8%) is down another ~10%, bringing its YTD loss to nearly 40% while its valuation has fallen to ~30% of book value, and its credit default swaps spiked to their highest levels since 2012.
- News of major withdrawals out of Credit Suisse (CS -4.2%) caused its shares to sink 11% last week, hitting a 24-year low, and Santander (SAN -6.2%), BBVA (BBVA -5.4%), and UniCredit (OTCPK:UNCFF -5.5%) are down to lows seen during the last eurozone financial crisis.
- "Oil and the flatter yield curve alone do not explain the 12% plunge we have seen in S&P Financials so far this year," Rosenberg says, adding that BofA (BAC -6.1%), Citigroup (C -6.2%) and Wells Fargo (WFC -3.5%) all briefly touched 52-week lows last week - "an ominous signpost."
- ETFs: XLF, FAS, FAZ, UYG, VFH, PSP, IYF, EUFN, BTO, IPF, IAI, IYG, SEF, FNCL, FXO, PFI, IXG, PEX, RYF, FINU, KCE, RWW, KBWC
- Earlier: Markets extend two-day rout; gold gets 3% boost
Thu, Jan. 28, 12:03 PM
- "The bank I would like to run at the moment is Wells Fargo," says a glum Deutsche Bank (DB -4.1%) CEO John Cryan after the bank reported a $7.4B loss last year and canceled management bonuses.
- "I would love to make 400 basis points in retail banking and have a relatively easy life. Unfortunately there are lots of things I wish for that are not going to come true ... "Sometimes I go home in the evening and I say to my wife I wish some people would actually think I had some talent for running a company and not just cleaning it up."
- For Q4, the bank posted a €1.15B pretax loss after taking €1.2B in litigation charges, and Cryan predicts more such costs for the next two years.
- "Once we have the bank set up, its cost bases, its capital in a good place it should be fun running a company like this."
Thu, Jan. 21, 9:16 AM
Oct. 29, 2015, 9:13 AM| Oct. 29, 2015, 9:13 AM
Oct. 8, 2015, 7:38 AM
- Down as much as 8% last night following news of €5.8B in impairment charges to be taken in Q3, Deutsche Bank (NYSE:DB) is now up 0.8% in premarket action.
- Last night's news has all the signs of a new CEO clearing the decks for the way forward, but - as IP Banking Research points out on Seeking Alpha - much of the writedown won't have a significant impact on the bank's capital ratios (goodwill and intangibles usually don't figure in these).
- If Postbank is sold for below book value, this would be hit to capital, but should Deutsche sell its stake in Hua Xia Bank, it would likely be a benefit.
- Cutting the dividend, says IP, is the right thing to do given the big moves John Cryan is making at the lender. Most importantly, this probably means another dilutive capital raise won't happen.
- IP: "I am immensely impressed by the swiftness, decisiveness and quality of execution by the new CEO. Clearly, this is not about tinkering around the edges, this is a complete reset for the organization."
- Previously: New Deutsche CEO kitchen-sinking Q3; bank to cut or eliminate dividend (Oct. 7)
Oct. 7, 2015, 5:39 PM
Oct. 7, 2015, 4:19 PM
- Deutsche Bank (NYSE:DB) is lower by 5.8% in active after hours action after warning of €5.8B of impairment charges to goodwill and other intangibles, and telling investors to expect a reduction or elimination of the dividend for fiscal 2015.
- Among the charges: An €600M impairment to the carrying value of Deutsche's 20% stake in Hua Xia Bank, and a €1.2B litigation charge.
- The bank expects to report a loss of about €6.2B. Excluding items, the bank will see a net loss of roughly €400M.
- Co-CEO John Cryan took the reins on July 1.
Sep. 14, 2015, 8:45 AM
- Deutsche Bank (NYSE:DB) -1.7% premarket following a Reuters report that the bank is preparing to close all its Russian operations, except for transaction banking services.
- Over the weekend, Deutsche Bank said Russian unit chairman Joerg Bongartz would leave Moscow for Germany, a move that comes as the U.S. Department of Justice investigates potential money laundering involving the bank's Moscow office.
Jul. 10, 2015, 9:12 AM
Jul. 6, 2015, 9:10 AM
Jun. 29, 2015, 9:16 AM
Jun. 8, 2015, 9:16 AM
Jun. 8, 2015, 7:16 AM
- "With John Cryan as CEO, we think that Deutsche (NYSE:DB) is transitioning from one of the least credible management teams in investors’ minds to one of the most highly regarded," says John Cryan from Jefferies. "“We do not foresee a dramatic change in strategy or capital raising, but market confidence on delivery should clearly increase.”
- The stock's currently higher by 6% in premarket action.
- Cryan earned positive reviews after taking the CFO's job at UBS in 2008, and helping to lead that bank back from the crisis. He left UBS in 2011 to join Singapore's Temasek Holdings, and came to Deutsche in 2013.
- Previously: Deutsche Bank's co-CEOs resign (June 7)
May 26, 2015, 8:37 PM
- With attention already starting to shift to regulatory approval, Charter Communications (CHTR +2.5%) CEO Tom Rutledge says his company's $55B acquisition of Time Warner Cable (TWC +7.3%) will do better with the FCC than Comcast's: Think small.
- "If you look at the ecosystem, who we're playing with in terms of other competitors, they're very large, and we'll still be a relatively small company compared to the large phone companies, compared to Comcast, compared to the wireless companies," he told CNBC.
- Charter's simultaneous deal for Bright House Networks may pump up its own leverage, but it was critical to the TWC bid, says analyst Craig Moffett: Virtually debt-free Bright House and its borrowing capacity likely added as much as $18/share to Charter's $195.71/share offer. Moffett says TWC's handling of Altice's (OTC:ATCEY) counter-play was masterful.
- About that debt: TWC bondholders are still nervous about the combined load (While the firm's 30-year bonds rose 11.7% today, they're still down about 16% from last month). Moody's is likely to push TWC into junk rating territory as debt-to-EBITDA rises from TWC's 2.97 to about 4.79 for the combination. But again, Bright House's addition and "conservative voice on the board" may be mitigating the effects.
- And MoneyBeat's deal tally: Aside from big winner TWC, winners include Goldman Sachs (NYSE:GS), (eventually) rewarded for backing Charter, and UBS, working as sole adviser to Bright House; Losers include Comcast backer JPMorgan Chase (NYSE:JPM), and Deutsche Bank (DB -3.4%) -- a Charter backer back when, but unseen in the new deal.
- Previously: Charter to merge with Time Warner Cable, buy Bright House (May. 26 2015)
Other News & PR