With Deutsche Bank (DB) facing a number of regulatory and legal issues, Andrew Procter - global head of compliance - is departing to join a private law firm, reports the FT after seeing an internal memo. No successor has been named, but sources say the job will likely be split into a global head of compliance and a separate head of government affairs.
Aside from the many legal issues the bank faces, there's also money. Declining banking sector bonuses now stretched out over several years make poaching legal staff an easier task for well-paying law firms.
New York resident Kevin Maher files suit against the five banks who set the London gold fix each day, accusing them off price manipulation. The five: Deutsche (DB), Barclays (BCS), Scotiabank (BNS), HSBC, and SocGen (SCGLY).
The setting of the benchmark occurs twice a day in a teleconference through something resembling open-outcry. There are, of course, a number of investigations ongoing about illegal manipulation, and an academic study has found what it deems to be good evidence of collusion in the afternoon fix.
Boston-based Charles River Associates was hired by Deutsche Bank (DB +1.7%) several months ago, reports the WSJ, to assess the extent of the bank's participation in the alleged rigging of the London gold fix.
Gold is traded around the clock, but there is no central source for prices, and a group of five meets twice a day in London to determine a snapshot, or fix. Other than Deutsche, the others are Barclays (BCS), HSBC, Scotiabank (BNS), and SocGen (SCGLY).
Deutsche last month announced its exit from the group, and Standard Chartered (SCBFF) reportedly is the front-runner to replace it.
Deutsche Bank (DB) today settled a decade-long battle with the heirs of media kingpin Leo Kirch for slightly more than €900M (after interest and costs are factored in). The bank will take a €350M charge against 2013 Q4 earnings.
The dispute stemmed from a 2002 TV interview in which the then-CEO of Deutsche said the bank would probably not provide any further loans to Kirch's teetering business. Kirch accused the bank of violating his confidentiality rights and of intentionally damaging the company in order to provoke its break-up.
There have been a number of suits against the global banks over claims of forex manipulation, but this latest by the City of Philadelphia Board of Pensions and Retirement is the first to include research highlighting unusual movements in major currencies.
Using data compiled by Fideres, the plaintiffs analyzed daily trading right around the 4 PM fix of currency prices ... curiously, anomalous price movements became rarer and less pronounced after the initial reports of rigging surfaced last summer.
Morgan Stanley has spent some time looking at euro/dollar spikes at 4 PM and also concluded they were unrelated to economic events. Instead of collusion though, Morgan pins the blame on computerized trading programs.
The seven banks sued by Philadelphia which is seeking damages as high as $10B: Barclays (BCS), Citigroup (C), Deutsche Bank (DB), HSBC, JPMorgan (JPM), RBS, and UBS.
Goldman Sachs (GS) and Deutsche Bank (DB) are looking to exit an area of operations that not that many people know they're involved in: trading supplies of raw uranium, which is also known as yellow cake.
Between them, the companies have built up stockpiles of low-grade uranium larger than those held by Iran.
However, with scrutiny of banks' physical-commodities trading increasing and uranium demand low following the Fukushima disaster, the firms are looking to sell their uranium trading desks.
Australian bank Macquarie (MCQEF) is reportedly interested in Goldman's operations, which are called NUFCOR.
A Dubai court has found Deutsche Bank (DB) to be in "material non-compliance" with orders to provide information as part of a probe into the alleged violation of rules, the Dubai Financial Services Authority (DFSA) has said.
The DFSA sued Deutsche Bank in November after an investigation of almost a year into the German bank's wealth-management division.
Lawsky is said to have asked for documents from Barclays (BCS), Credit Suisse (CS), Deutsche Bank (DB), Goldman Sachs (GS), Lloyds (LYG), Royal Bank of Scotland (RBS), Societe Generale (SCGLF, SCGLY) and Standard Chartered (SCDRF, SCBFF).
Turning its attention from cleaning up legacy issues to growth, Deutsche Bank (DB +0.4%) is adding senior staff and billions in capital to its U.S. unit, with the latest move being the elevation of Rich Herman to New York-based co-head of fixed income trading. Herman previously ran the global debt sales team out of London, but will relocate to the Apple to replace Wayne Felson.
Deutsche has typically had #1 market share in U.S. bond trading, but fell all the way to 4th spot last year behind JPMorgan, Credit Suisse, and Citigroup, according to research group Greenwich Associates.
“We see fixed income as a core franchise at Deutsche Bank and remain committed to it,” said Deutsche co-CEO Anshu Jain last month, vowing to step up U.S. investment.
The iShares Currency Hedged MSCI Japan ETF (HEWJ) and Germany ETF (HEWG) will hold a portfolio of large- and mid-cap Japanese and German equities (respectively), while mitigating exposure to fluctuations between the value of the Japanese yen and euro (respectively) against the U.S. dollar.
The iShares Currency Hedged MSCI EAFE ETF (HEFA) represents a more global approach and will hold a portfolio of large- and mid-cap equities in Europe, Australasia, and the Far East, while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar.
This sector of the ETF universe is currently dominated by WisdomTree (WETF) and Deutsche Bank (DB) sponsored funds.
Deutsche Bank's (DB) shares slide 3.6% in Frankfurt after the bank published its Q4 results early and reported a pretax loss of €1.2B. The figure badly missed consensus for a profit of €628.5M, although it was down from a loss of €3.17B a year earlier.
DB also warned that it expects "2014 to be a year of further challenges and disciplined implementation," but it is still confident of achieving its 2015 targets.
Q4 net loss €1B.
Deutsche Bank's losses were partly caused by reorganization costs, and charges to adjust credit, debt and funding valuations, as well as by litigation.
Revenue at Deutsche Bank's investment banking and trading unit tumbled 27% to €2.46B, hurt by a 31% drop in bond and other fixed-income trading. That compares with an 8% fall for U.S. banks. Revenue from trading equities rose 8%.
Tier 1 equity 9.7%.
Despite the loss, JPMorgan analyst Kian Abouhossein remains bullish. "Deutsche Bank management deserves credit," Abouhossein says. The firm "is still in restructuring mode but management has delivered on our wish-list of aggressive exposure reduction, bringing forward cost savings and settlement of some litigation." (PR)
Dow Jones reports Deutsche Bank (DB -3.8%) is thinking of issuing a Q4 profit warning on account of losses stemming from the sale of non-core assets and legal/accounting costs. Shares have spiked lower in response.
The German bank delivers its preliminary 2013 results on Jan. 29.
Good news could be in store for European banks as chatter says the ECB is considering just a 6% capital requirement in its stress tests as opposed to the 8% previously promised. A small number of countries aren't even satisfied with 6% and reportedly may press for a lower number.
Previous European bank stress tests are known mostly for giving passing grades to lenders who just a short while later required government bailouts.
Tails in the air today include: Santander (SAN +1.6%), Deutsche Bank (DB +2%), ING (ING +0.9%), BBVA (BBVA +3.4%), Bank of Ireland (IRE -0.6%), and Allied Irish Banks (AIBYY +6.3%).