Yesterday, 12:13 PM
- The two U.S. banks lost plenty of trading action from hedge fund clients to European competitors during the financial crisis, but are winning it back in part thanks to new capital rules forcing the European lenders to whittle down their operations.
- According to Preqin, Goldman (NYSE:GS) and Morgan Stanley (NYSE:MS) have added about six hundred basis points of market share since the end of last year to 37%.
- Prime brokerage is one of the few areas on Wall Street where revenue and pricing are on the rise, say analysts, and could provide a buffer to Q3 earnings expected to take a hit from weaker FICC action.
- Among the European banks losing market share are Deutsche Bank (NYSE:DB), and Credit Suisse, whose new CEO plans further cutbacks in prime brokerage.
Thu, Oct. 1, 5:11 PM
- JPMorgan Chase (NYSE:JPM) will pay almost a third of a $1.86B settlement to resolve accusations that a dozen big banks conspired to limit competition in the credit default swaps market, Bloomberg reports.
- JPM reportedly will pay $595M, followed by Morgan Stanley (NYSE:MS) with $230M, Barclays (NYSE:BCS) at $175M, Goldman Sachs (NYSE:GS) at $164M, Credit Suisse (NYSE:CS) at $160M and Deutsche Bank (NYSE:DB) at $120M; BofA (NYSE:BAC), BNP Paribas (OTC:BNPZY), UBS, Citigroup (NYSE:C), Royal Bank of Scotland (NYSE:RBS) and HSBC would pay less than $100M each.
- The deal would avert a trial and end years of litigation by hedge funds, pension funds, university endowments, small banks and other investors, who sued as a group.
Mon, Sep. 14, 11:29 AM
- A day ahead of the launch of Symphony -- a service seen as a potential rival to Bloomberg's lucrative terminal business -- New York's Department of Financial Services has reached a deal with four banks over record keeping for the system, CNBC reports.
- Goldman Sachs (GS -0.4%), Bank of New York Mellon (BK -0.1%), Deutsche Bank (DB +0.1%) and Credit Suisse (CS -1.8%) are party to the deal where Symphony's chat service will keep all e-mail exchanges between the banks for seven years.
- The banks will also have to hand over a "spare set" of duplicate encryption keys to an independent auditor.
- Without the safeguards, the regulators worried that probes into insider trading and related crimes would be stymied.
Mon, Sep. 14, 10:57 AM
- Deutsche Bank (DB +0.2%) plans to cut ~23K jobs, or roughly one quarter of its global workforce, through layoffs mainly in technology activities and by spinning off its PostBank division, according to a Reuters report.
- New CEO John Cryan, who took control of the bank in July with the promise to cut costs, reportedly presented preliminary details of the plan to members of the board during the weekend.
- A significant number of the ~20K positions in technology and back office operations in London, New York and Frankfurt will be reviewed for possible cuts, and ~8K layoffs out of PostBank's 15K positions are eyed once the unit's spinoff is completed as planned in 2016.
- Earlier: Reuters: Deutsche Bank prepares to shut Russian operations
Mon, Sep. 14, 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.
Thu, Sep. 10, 3:38 PM
- Instead of major reforms, new CEO John Cryan will propose an acceleration of existing plans to shed assets and exit countries at a three-day board retreat beginning today, reports Reuters.
- Cryan's hands are somewhat tied by a number of factors, including continuing costly litigation, say insiders, forcing continuation of DB's "salami slicing" tactics.
- The board is getting impatient: "I expect straight talk," says one member.
Wed, Sep. 9, 6:07 PM
- New York regulators have sent letters seeking information to big banks that are primary Treasury dealers as part of a probe on potential manipulation of bond auctions, Reuters reports.
- The banks -- including Barclays (NYSE:BCS), Deutsche Bank (NYSE:DB), Goldman Sachs (NYSE:GS), Societe Generale (OTCPK:SCGLY) and Credit Suisse (NYSE:CS) -- aren't charged with specific wrongdoing at the moment, as the investigation is still in early stages.
- Boston's public employee pension fund, State-Boston Retirement System, had sued 22 primary dealers in July alleging conspiracy to manipulate Treasury auctions; meanwhile, little-known hedge fund Element Capital has been buying tens of billions of dollars worth of bonds at the auctions, well over its $6B assets under management, the WSJ reports, drawing attention from the Treasury Dept.
- Element Capital has been the largest purchaser in dozens of auctions over the past 10 months.
Wed, Sep. 2, 7:29 AM
- Deutsche Bank (NYSE:DB) holds about a 20% stake in China's Hua Xia, "It is obvious that [foreign companies in general] exit minority stakes in China," says outgoing bank co-CEO Jurgen Fitschen in his first public comments since he and Anshu Jain announced they were stepping down.
- As for rumors the cost-cutting program from new CEO John Cryan will be even harsher than expected, Fitschen says it won't.
- Source: WSJ
Mon, Aug. 17, 3:53 PM
- Deutsche Bank's (DB -0.9%) FICC revenue of $5.26B in H1 was up 12% from a year earlier, and accounted for nearly 25% of overall bank revenue. Now former co-CEO Anshu Jain made his bones in the division, but he departed the bank in June, and global head of fixed-income Richard Herman told staff in May he was departing.
- Michael Ormaechea - a senior exec for the operation in Asia - will lead an executive committee overseeing the business, reports Bloomberg, and the operation's products and services are being divided into six main groups, with those leaders reporting to Colin Fan, co-head of corporate banking and securities.
- “This new governance structure will ensure clear accountability within each product, allow greater efficiency and operational excellence across products,” writes Fan to staff.
Thu, Aug. 13, 8:28 AM
- Eight current and former employees of Deutsche Bank (NYSE:DB) are alleged by Frankfurt prosecutors to have set up a chain of firms helping them to commit value-addd tax fraud when buying and selling carbon-emission certificates between September 20009 and February 2010.
- Prosecutors didn't name the bank involved, but sources say its Deutsche - which was linked to emissions-trading tax fraud after a raid conducted in Dec. 2012.
- Unsurprisingly, fixing contentious relationships with regulators is job one for new co-CEO John Cryan. The bank is facing more than 7K lawsuits and regulatory investigations and has paid out about €9B in fines over the past few years.
- Source: WSJ
Tue, Aug. 4, 2:07 AM
- There's a new headache at Deutsche Bank (NYSE:DB). The DOJ is investigating billions of dollars worth of mirror trades the bank may have made on behalf of its Russian clients to move funds quietly out of the country.
- The new inquiry adds to the wave of legal woes challenging the institution, which has been battered by multiple criminal investigations and resignations of top executives.
Mon, Aug. 3, 8:06 PM
- Citigroup (NYSE:C) has hired away two M&A specialist bankers from Deutsche Bank, Reuters reports.
- Steve Pettigrew and Samardh Kumar are set to join Citigroup later in the year, sources told Reuters. Pettigrew has worked on software deals including cybersecurity and infrastructure, while Kumar focused on digital media and Internet deals.
- Earlier, Bank of America hired away Richard Peacock from Goldman Sachs to be a managing director in its M&A group.
- After hours: C -0.4%; DB -0.3%.
- Previously: BofA hires senior retail banker from Goldman Sachs to boost M&A (Aug. 03 2015)
Fri, Jul. 31, 12:26 AM
Thu, Jul. 16, 4:03 PM
- In a confidential report sent to Deutsche Bank (DB +1.5%) in early May - less than a month before the lender announced the resignations of its co-CEOs - BaFin blasted bank management for failing to stop or tell regulators about years of attempted market manipulation, reports the WSJ.
- One of the co-CEOs - Anshu Jain - is singled out in the report for his shortcomings. The other - Jurgen Fitschen - didn't draw any criticism, but four current members of the board and two other senior executives did.
- Though expressing "deep regret" for any wrongdoing, Deutsche strongly disputes BaFin's conclusions, saying the report includes statements taken out of context. Jain calls the allegations "baseless."
Mon, Jul. 13, 2:47 PM
- Building on a probe into whether $6B in trades made by Deutsche Bank (NYSE:DB) for Russian clients constituted money laundering, New York's Dept. of Financial Services is looking into whether a bank employee in Moscow was bribed, according to the FT.
- Earlier this summer, Deutsche announced an internal investigation into the matter, with the word then that the bank's hands were clean and the misconduct was by clients.
- The bribe in question was from a counterparty who had been suspended from trading with Deutsche, but wanted to start back up. The attempt was not accepted.FT
Fri, Jul. 10, 9:12 AM
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