Oct. 29, 2014, 6:22 AM
Oct. 29, 2014, 3:57 AM
- Deutsche Bank (NYSE:DB) swung to a net loss in the third quarter, as heavy legal fees outweighed a rise in investment banking.
- Germany’s top lender reported a net loss of €92M ($117M), on net revenues of €7.9B.
- Spending €894M on litigation costs during the quarter, Deutsche Bank has now spent around €7B on fines and settlements since 2012.
Oct. 28, 2014, 1:50 PM
- Deutsche Bank (DB +2.7%) is replacing CFO Stefan Krause with Goldman partner Marcus Schenk, the WSJ and Bloomberg report.
- Krause has been Deutsche's CFO since 2008. Schenk was the CFO of German utility E.ON before joining Goldman last year.
- The reported shakeup comes after U.K. regulators and the N.Y. Fed took aim at Deutsche's financial reporting.
Oct. 27, 2014, 12:52 PM
- “Judging from the market reaction today, investors don’t completely believe in the ECB," says Peter Garnry, head of equity strategy at Saxo Bank. "They are more pessimistic on the banks."
- Financial firms were among the worst performers today following the release of ECB stress tests over the weekend, falling 0.9% vs. the Stoxx Europe 600's decline of 0.6%. Hardest hit were the Italian lenders after that country's banks made up a disproportionate share of those who failed the exams. Not failing, but nevertheless hit: Unicredit (OTCPK:UNCFF, OTC:UNCFY) -2.6%, Intesa Sanpaolo (OTCPK:IITOF, OTCPK:IITSF, OTCPK:ISNPY) -3.1%. Italy's FTSE MIB index (NYSEARCA:EWI) led European declines, falling 2.3%.
- Also taking a hit despite no issues from the stress tests were Europe's larger banking powers: Santander (SAN -3%), Deutsche Bank (DB -1.6%), ING (ING -1.8%), BBVA (BBVA -2.3%).
- EUFN -1.4%
- Previously: ECB stress test failures centered among Italian banks
Oct. 24, 2014, 2:44 AM
- Thirty-one banks are set to participate in the Fed's 2015 stress tests, which will see how they can withstand pressures such as a spike in oil prices, a rise in the U.S. unemployment rate or an increase in risky corporate loans. The capital plans are due in January.
- Among the bank's that failed last year's tests are Citigroup (NYSE:C), and the U.S. units of HSBC (NYSE:HSBC), Santander (NYSE:SAN) and RBS (NYSE:RBS).
- Deutsche Bank (NYSE:DB) will participate for the first time, and has already felt pressure from the NY Fed, which has told it in a private letter that its regulatory reports were "low quality, inaccurate and unreliable".
- This Sunday, the ECB will release results for stress tests of 130 eurozone banks amid a deteriorating economic outlook for the region.
Oct. 23, 2014, 4:49 PM
- Not having had the pleasure of being subject to the stress test and CCAR previously, Deutsche Bank's (NYSE:DB) U.S. unit will be a participant next year
- As in prior years, those BHCs with large trading operations - BAC, C, GS, JPM, MS, WFC - will be required to factor in a global market shock as part of their scenarios.
- Those six, plus STT and BK - thanks to their custodial operations - will be required to incorporate a counterparty default scenario.
- Among the items in the severely adverse scenario is the unemployment rate jumping to 10%, a 60% dive in the stock market, and oil jumping to $110 per barrel (how about oil falling to $10 per barrel?).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, RKH, QABA, FINU, KCE, KRU, KBWR, RWW, RYF, KBWC, FINZ, KRS
Oct. 13, 2014, 6:16 AM
- Deutsche Bank (NYSE:DB) is losing some of its strongest traders amid a clampdown on bad behavior, co-head of investment banking Colin Fan says.
- DB no longer rewards the best earners with a promotion or the highest bonuses if they aren't seen as team players, which is adding to the outflow of senior talent.
- “Some people are purely financially driven and they’re going to less regulated spaces, maybe it’s tech, maybe it’s hedge funds; we wish them well. These are people that probably won’t fit into the new banking environment anyway.”
- “I think the entire industry is being very deliberate” on culture changes. “We all firmly believe you cannot seriously be operating under the old culture.”
Oct. 12, 2014, 6:26 AM
- Deutsche Bank (NYSE:DB) executives think its litigation reserves, currently €5.4B, may be too low and should be increased to €7B, Der Spiegel says.
- Deutsche is currently involved in at least a thousand legal disputes including the alleged rigging of Libor and a forex scandal.
- See also: Bonuses withheld from top Deutsche Bank execs (Oct. 1)
Oct. 10, 2014, 12:52 PM
- The banking industry is very close to resolving too big to fail, says Jamie Dimon (JPM +0.6%), speaking publicly for the first time since his cancer diagnosis (other than his July earnings call appearance). He's appearing at a conference roundtable alongside Morgan Stanley's (MS +0.8%) James Gorman, Deutsche's (DB -0.9%) Anshu Jain, and Bank of America's (BAC +0.7%) Brian Moynihan.
- Webcast here
- The most pointed remarks so far come from Deutsche's Jain, who tells those who would continue to further strangle the banks with more regulation to look to Europe. Straightforward banking - taking deposits and making loans - is far more the norm there then here, he says, and the forcing of banks to trim businesses and balance sheets is a large contributor to the Continent's stagnant growth.
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, RKH, QABA, FINU, KCE, KRU, KBWR, RWW, RYF, KBWC, KRS, FINZ
Oct. 8, 2014, 2:18 AM
- Eighteen of the world's largest banks, ranging from Credit Suisse (NYSE:CS) to Goldman Sachs (NYSE:GS), have agreed to give up the right to "close out" deals on derivatives contracts if a financial institution runs into trouble, FT reports.
- The International Swaps and Derivatives Association is due to announce the agreement to change its “protocols”, which govern the $700T market, in the next few days. They will take effect from January 1, 2015.
- Related stocks: HSBC, JPM, OTC:BNPZY, DB, BCS, BAC, SAN, C, RBS,
Oct. 6, 2014, 3:42 PM
- Though the hope is for a deal before year's end, one person close to the talks says a settlement is more likely in early 2015. At issue is alleged manipulation of benchmark interest rates, and Deutsche Bank (DB +0.1%) would become lender number eight to be punished by the U.S. in recent months.
- The primary agencies going after Deutsche are the U.S. CFTC and DOJ, and the U.K. FCA.
- Late last year, the bank paid €725M to the EU over similar charges, and in Q2 Deutsche boosted its litigation reserves by about €470M to €2.2B. It also raised its pool for contingency liabilities to €3.2B from €2B, though this had more to do with MBS claims.
Oct. 1, 2014, 6:39 AM
- Deutsche Bank (NYSE:DB) is withholding several million euros in bonuses from its co-chief executives and other top managers, holding senior staff responsible for an exorbitant amount of costly legal and regulatory problems.
- The bank had to pay €3B in legal costs last year and it stocked up its reserves for litigation and regulatory fines by €450M to €2.2B in Q2 of this year.
- Deutsche is currently involved in at least a thousand legal disputes including the alleged rigging of Libor and its forex scandal.
- DB +1% premarket
Sep. 23, 2014, 10:12 AM
- Deutsche Bank (DB -0.6%) co-CEO Jurgen Fitschen and other former bank board members have been charged by German prosecutors with giving false testimony in the long-running court battle with the heirs of Leo Kirch.
- Those charged will be given time to respond to the allegations before a decision is made on whether to pursue the case (likely early next year). If convicted, the executives could face jail terms of 6 months to 10 years.
Sep. 5, 2014, 2:33 PM
- Deutsche Bank (DB +0.6%) Alternative Fund Services has been selected to provide fund administration services for various TIAA-CREF Asset Management alternative investment products.
- The Fund Services unit has more than $200B in assets under administration, and is part of the bank's Investor Services business which has more than 6K clients and $9T in securities administered.
- Source: Press Release
Sep. 5, 2014, 3:41 AM
- U.S. Federal Judge Denise Cote has ruled that investors may press claims against 12 major banks for violating antitrust law by limiting competition and fixing prices in the $21T CDS market, even though improved liquidity should have driven costs down.
- The defendants include BofA (NYSE:BAC), Barclays (NYSE:BCS), BNP Paribas (OTC:BNPZY), Citigroup (NYSE:C), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), Goldman Sachs (NYSE:GS), HSBC (NYSE:HSBC), JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS), RBS (NYSE:RBS) and UBS (NYSE:UBS).
Aug. 29, 2014, 7:12 AM
- Deutsche Bank (NYSE:DB) has been fined £4.7M by the U.K.'s Financial Conduct Authority for inaccurately reporting more than 29M equity swap contract transactions.
- The inaccuracies seem to have occurred due to a software coding error which caused the bank to misreport all these derivative product sales as purchases and vice versa.
- The fine comes on the heels of the NY Fed's announcement of the bank's shoddy regulatory reporting.
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