Sun, Mar. 15, 5:47 AM
- In one of the biggest deals in the Asia-Pacific region so far this year, a consortium of KKR (NYSE:KKR), Varde Partners and Deutsche Bank (NYSE:DB) has agreed to buy GE (NYSE:GE) Capital's Australian and New Zealand consumer lending arm for about $A8.2B ($6.26B).
- The move comes after General Electric disposed of its appliances unit, real estate holdings and a stake in NBCUniversal, and shed more of its banking businesses to return to its industrial focus.
- Previously: GE reportedly weighing deeper cuts to banking business (Mar. 11 2015)
Wed, Mar. 11, 4:36 PM
- Bank of America (NYSE:BAC) has deficiencies including loss and revenue modeling practices in its internal controls, says the Fed, requiring the bank to resubmit its capital plan before winning approval for boosted shareholder returns. The lender has until the end of September to address the Fed's concerns.
- Santander (NYSE:SAN) has "widespread and critical deficiencies," and Deutsche Bank (NYSE:DB) has "numerous and significant deficiencies." We're talking about the U.S. units here, and the capital returns in question are back to the parents, not to shareholders.
- CCAR results
- BAC -1.25%, DB -1.2%, SAN -1% after hours
Tue, Mar. 10, 8:04 PM
- Spanish-language megabroadcaster Univision has tapped Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and Deutsche Bank (NYSE:DB) to lead its initial public offering, Reuters reports.
- Univision is currently owned by Univision Communications (owned by private-equity partners), and an IPO that could come in the second half could bring $1B and value the company at as much as $20B.
- The broadcaster was previously rumored to be a takeover target for the likes of CBS and Time Warner.
Thu, Mar. 5, 8:28 PM
- The minimum Tier 1 common capital ratio for banks is 5%, according to the Fed, and here's how the 31 lenders stacked up under the central bank's severely adverse scenario vs. a year ago (h/t: WSJ):
- Deutshce Bank (NYSE:DB): 34.7%, not tested a year ago
- DIscover (NYSE:DFS): 13.9% vs. 13.2% a year ago
- Bank of New York Mellon (NYSE:BK): 12.6% vs. 13.1%
- American Express (NYSE:AXP): 12.5% vs. 12.1%
- Northern Trust (NASDAQ:NTRS): 12.3% vs. 11.7%
- State Street (NYSE:STT): 11.8% vs. 13.3%
- Citizens Financial (NYSE:CFG): 10.7% vs. 10.7%
- KeyCorp (NYSE:KEY): 9.9% vs. 9.2%
- Capital One (NYSE:COF): 9.5% vs. 7.8%
- PNC Financial (NYSE:PNC): 9.5% vs. 9%
- Santander Holdings USA (SAN's U.S. unit): 9.4% vs. 7.3%; shares +0.8% after hours
- BMO Financial (BMO's U.S. unit): 9% vs. 7.6%
- Comerica (NYSE:CMA): 9% vs. 8.6%
- Huntington Bancshares (NASDAQ:HBAN): 9% vs. 7.4%
- HSBC North America (NYSE:HSBC): 8.9% vs. 6.6%
- U.S. Bancorp (NYSE:USB): 8.5% vs. 8.2%
- Regions Financial (NYSE:RF): 8.3% vs. 8.9%
- Citigroup (NYSE:C): 8.2% vs. 7.2%
- SunTrust (NYSE:STI): 8.2% vs. 8.8%
- BB&T (NYSE:BBT): 8.1% vs. 8.4%
- MUFG Americas Holdings (NYSE:MTU): 8% vs. 8.1%
- Ally Financial (NYSE:ALLY): 7.9% vs. 6.3%
- Fifth Third Bancorp (NASDAQ:FITB): 7.9% vs. 8.4%
- Wells Fargo (NYSE:WFC): 7.5% vs. 8.2%
- M&T Bank (NYSE:MTB): 7.3% vs. 6.2%
- Bank of America (NYSE:BAC): 7.1% vs. 5.9%; shares +2.1% after hours
- JPMorgan (NYSE:JPM): 6.5% vs. 6.3%
- BBVA Compass (NYSE:BBVA): 6.3% vs. 8.5%
- Goldman Sachs (NYSE:GS): 6.3% vs. 6.9%
- Morgan Stanley (NYSE:MS): 6.2% vs. 6.1%
- Zions Bancorp (NASDAQ:ZION): 5.1% vs. 3.6%; shares -1.7% after hours
- The lenders were also informed today whether their capital return plans would put them below the Fed's 5% threshold, giving them a 6-day window with which to change those requests, if need be. Last year, both BofA and Goldman scaled back their dividend/buyback requests, allowing them to pass the CCAR. This year's CCAR results will be announced on Wednesday.
- 2015 Stress Test Methodology and Results
Thu, Mar. 5, 5:29 PM
- Deutsche Bank's (NYSE:DB) Tier 1 capital ratio under the severely adverse scenari was 34.7% vs. the 5% minimum, and the Tier 1 leverage ratio of 11% stood against the 4% minimum.
- The Fed did note that the test only covered about 15% of the bank's operations. That will change for next year as Deutsche is expected to bring all U.S. operations under one holding company.
- The CCAR results are set for next Wednesday after the close.
- Previously: All pass the stress test, but some cut it close (March 5)
- Previously: BofA +1.1% after getting through stress test (March 5)
- Previously: All 31 lenders pass the stress test (March 5)
Tue, Feb. 24, 6:17 AM
- Deutsche Bank (NYSE:DB) will outsource large parts of its wholesale banking IT infrastructure to Hewlett-Packard (NYSE:HPQ) in a multibillion-dollar deal that is expected to significantly cut costs.
- Under the 10-year agreement, HP will provide computing capacity and data storage to host Deutsche's operations, while the bank will retain activities such as IT architecture and information security.
- HPQ +0.4% premarket
Tue, Feb. 24, 1:56 AM
- U.S. officials are probing at least 10 major banks for the possible rigging of precious-metals markets, even though European regulators shelved a similar investigation after finding no evidence of wrongdoing, WSJ reports.
- The DOJ is scrutinizing the price-setting process for gold, silver, platinum and palladium in London, while the Commodity Futures Trading Commission has opened a civil investigation.
- Banks under scrutiny: HSBC, BNS, BCS, CS, DB, GS, JPM, OTCPK:SCGLY, OTCPK:SGBLY, UBS
Fri, Feb. 20, 5:52 PM
- Deutsche Bank (NYSE:DB) and Banco Santander (NYSE:SAN) are likely to fail the Fed's stress test because of shortcomings in how they measure and predict potential losses and risks, Dow Jones reports.
- Failing the stress tests likely would subject the U.S. units of DB and SAN to restrictions on paying dividends to their European parent companies or other shareholders; SAN already is under such a restriction after failing its first stress test run last year, while DB is undergoing the U.S. stress test process for the first time this year.
- Both banks passed European Central Bank stress tests in October.
Fri, Feb. 20, 12:31 PM
- Deustche Bank (DB +1.1%) sets a goal of investing €1B in green bonds, adding to the already €200M it owns of the fast-growing market for financing clean-energy projects - security issuance related to the trendy field more than doubled last year to $38.8B, according to Bloomberg.
- With this move, Deutsche joins Citigroup, Barclays, JPMorgan, Credit Agricole, BofA, and Goldman who have also made high-profile announcements in this area - some for far larger amounts.
Fri, Feb. 20, 4:48 AM
- Squeezed by new capital and risk rules and tough markets, Wall Street is taking the ax to its workforce, a report by London research firm Coalition shows.
- The number of investment bankers, traders, salespeople and research analysts at the world’s largest banks has fallen 20% globally since its recent peak in 2010.
- While job cuts on the front end have become standard, firms have been increasing their back-office hiring to beef up controls in areas ranging from compliance to risk.
- Related tickers: BAC, BCS, OTCQX:BNPQY, C, CS, DB, GS, JPM, MS, UBS
Tue, Feb. 10, 1:54 AM
- The NY Department of Financial Services has sent subpoenas to Goldman Sachs (NYSE:GS), Credit Suisse (NYSE:CS), BNP Paribas (BNZPY) and Societe General (OTCPK:SCGLY), Reuters reports, expanding its probe of whether banks' electronic trading platforms allow them to front-run clients in the forex market.
- At issue is a latency period between the time an offer is floated and accepted.
- The department is already probing Barclays (NYSE:BCS) and Deutsche Bank (NYSE:DB) over similar concerns and installed monitors at those banks in recent months.
Tue, Feb. 3, 1:20 PM
- The EU last year put into place a new bank-resolution law which would force losses on bondholders - 8% of a failing bank's liabilities would have to be wiped out before a bailout could be discussed.
- Without the systemic support, S&P cuts ratings on Credit Suisse (CS +1.9%), HSBC (HSBC +1.5%), Barclays (BCS +6.2%), Lloyds (LYG +3.6%), RBS (RBS +3.6%), and Standard Chartered (OTCPK:SCBFF +2.4%).
- Among those on watch for a cut, says S&P, is Deutshce Bank (DB +3.5%).
Thu, Jan. 29, 5:26 AM
- Deutsche Bank (NYSE:DB), which is embroiled in an array of investigations, posted a surprise Q4 net profit today after cutting the reserves it set aside to cover upcoming legal action and on higher investment banking revenue.
- Net profit of €438M ($494 million) beat expectations of a €289M loss forecast by analysts.
- "We are working hard to further manage our cost base, maintain our capital strength and increase our returns to shareholders," co-chief executives Anshu Jain and Jurgen Fitschen said in a joint statement.
- DB +3.8% premarket
Tue, Jan. 27, 3:44 PM
- “The investment bank is stagnating while the company’s other units are growing,” says an analyst with Bankhaus Metzler who rates the stock a Sell. “Scaling back the investment bank is an option, but you have to ask how they’re going to replace that earnings power.”
- As recently as Q3 of last year, the unit accounted for the largest share of Deutsche Bank's (DB -2.5%) earnings, but it's set to generate the least profit of any of the lender's four units in Q4. While Co-CEO Anshu Jain pledged to build the investment bank, he and his co-chief Juergen Fitschen may have no choice but to scale back even further when Deutsche updates on its strategic plan in Q2.
- There's plenty of upside if they get it right: Deutsche trades for just 0.6x tangible book value, the lowest of the top nine global investment banks.
- 'Investors have a lot of trouble believing that Deutsche Bank’s balance sheet is really going to be worth what they say it is,” says another analyst. “Even if fixed-income markets were to rebound, they’d still be short on capital and unable to reap the benefits.”
Fri, Jan. 16, 9:46 AM
Tue, Jan. 13, 8:03 AM
- When Deutsche (NYSE:DB) unveils this spring the results of its continuing strategy review - dubbed 2015+ - the report could include the sale of its Postbank retail unit, reports the WSJ.
- The presentation of the plan on an as-yet unidentified date in Q2 will mark a major step for co-CEOs Anshu Jain and Jurgen Fitschen who took over in 2012 with a mandate to accelerate the bank's turnaround.
- Deustche begain buying Postbank from Deutsche Post in 2008, so its sale would be a big shift for the bank which figured the purchase would boost a thin retail-banking network. One key issue: Germany's banking regulator - BaFin - has so far not allowed Deutsche Bank to tap into Postbank profits or fully use all of its deposits.
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