Jun. 18, 2014, 7:30 AM
- JPMorgan's (JPM) Q1 investment banking revenue, according to Coalition, keeps the bank ahead of rivals like GS, DB, BAC, and C - all of whom tied for 2nd - but the amount of $5.9B was nearly 15% lower than the $6.9B posted a year ago.
- Revenue in fixed income, commodities, and currencies (FICC) of $3.2B put JPMorgan in the top spot in that category, but this figure was down more than 25% from 2013.
- In equities, JPMorgan's $1.4B in revenue tied it with Morgan Stanley (MS) for first place. In advisory business, it was Goldman Sachs and BAML - each bringing in about $1.5B - which led the way.
Jun. 17, 2014, 8:08 AM
- Deutsche Bank's (DB) Japanese securities unit - Deutsche Securities - spent ¥22.1M ($217K) entertaining officials from 45 funds managing public pensions between 2010 and 2012, according to a report seen by Bloomberg. Deutsche Securities COO Bret Dandoy approved expenses for at least some of this and Chairman Norimichi Kanari joined in the festivities on one occasion, according to the report.
- Japanese criminal law prohibits companies from picking up the tab for public servants with the intention of obtaining business, but both Dandoy and Kanari maintain they weren't aware pension officials were regarded as civil servants.
- Deutsche Securities salesman Shigeru Echigo is currently at trial over these charges and faces a one-year prison term.
Jun. 12, 2014, 8:52 AM
- UBS is lower by 1.8% in premarket action after a report from Autonomous Research suggests the bank could face $8B in fines and settlements related to currency-rigging charges.
- In all, Autonomous sees $35B in penalties, with UBS seeing the largest bill. Coming in at place and show are Deutsche Bank (DB) with $4.4B and Citigroup (C) at $4.3B.
- Autonomous is basing its estimates on the size of the fines handed out for Libor-rigging. "We acknowledge that our methodology is speculative, but it applies the theory that repeated wrongdoing attracts higher penalties, as witnessed elsewhere."
Jun. 6, 2014, 10:13 AM
- The U.K.'s FInancial Conduct Authority is looking to fine former Deutsche Bank (DB -2.6%) trader Christian Bittar about £10M ($17M) for trying to rig Euribor (benchmark European rates), reports Bloomberg, in what would be the largest-ever penalty against an individual.
- Without naming names, the FCA says it's looking to fine at least seven other traders for manipulating benchmark rates, with two facing fines of over £1M.
- Bittar was fired from Deutsche in 2011 after the bank claimed he colluded with another trader to boost the value of his trades, and he lost about €40M in bonuses after being let go. He's currently based Singapore and working at a hedge fund.
Jun. 5, 2014, 2:51 PM
- “The extent of Deutsche Bank’s (DB -3.2%) financial exposure to these matters could be material, and Deutsche Bank’s reputation may suffer material harm as a result," says the bank in the prospectus related to its capital raise.
- No criminal charges have been filed over currency market manipulation, but more than two dozen traders have been fired across a number of banks. What's more, prosecutors - having wrung a guilty plea and massive fine out of Credit Suisse and about to do the same with BNP Paribas - have now gotten the taste of blood, and may have found they like it.
- Deutsche today raised €8.5B in an equity offering and plans to raise another €6.75B through a rights offering expected to be completed this month.
Jun. 5, 2014, 7:55 AM
- The Stoxx 50 (FEZ) is up 0.8% after being about flat ahead of the ECB rate decision, at which the central bank cut all three of its benchmark rates, including taking the deposit facility rate into negative territory.
- Italy (EWI) with a 1.3% gain and France (EWQ) ahead 1% lead the way.
- The euro (FXE) tumbles about 40 pips, now off 0.3% on the session and buying $1.3563.
- Europe equity ETFs: RSX, VGK, EWG, FEZ, GREK, EWP, EWI, DFE, RUSL, IEV, RSXJ, EWL, ERUS, EWU, RUSS, EPV, EZU, EWD, HEDJ, NORW, EWQ, EPOL, EIRL, PLND, EWO, RBL, GXF, EWN, FEU, EWK, FDD, EWGS, FEP, EDEN, UPV, EWUS, DBGR, PGAL, ADRU, ENOR, GERJ, DXGE, FEEU, FGM, EURL, FKU, EFNL, EUDG, DXPS, FSZ, EURZ, FIEU, RUDR, DBEU, HEWG, DBUK
- Euro ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
- ECB chief Mario Draghi's press conference begins at 8:30 ET.
Jun. 5, 2014, 7:07 AM
- Deutsche Bank (DB) reportedly has priced its €8.5B equity sale at €22.50 per share, higher than the €21-€21.50 price rumored yesterday. Still that price represents a 24% discount to the bank's current share price.
- The stock's lower by 1.3% in premarket action.
- Previously: Deutsche Bank capital raise set for sizable discount
Jun. 4, 2014, 9:09 AM
- "Underperformance has left CS shares with 35% upside potential to our target price, one of the highest in the sector," says analyst Jernej Omahen, upgrading the stock to a Buy and adding the name to Goldman's Conviction List.
- "Our analysis underlines that Credit Suisse's business mix embeds strategic optionality for group ROE expansion that other, non-Swiss, investment banks don’t have." The bank's "reorientation" towards private banking and wealth management could: 1) Improve returns; 2) Improve capital generation; 3) Reduce TBTF risk; 4) Close the valuation gap with UBS, which currently trades at a 51% premium based on 2104 earnings estimates, and a 42% premium based on 2015 price/tangible book value.
- Shares +1.4% premarket
- Goldman also pulls its Sell rating on Deutsche Bank (DB) citing the recent capital raises (the latest one is today) and the bank's new strategic direction.
Jun. 4, 2014, 6:27 AM
- Deutsche Bank (DB) will price its €8B ($11B) capital hike today at between €21 and €21.50 per share, reports CNBC, a sizable discount to the current price above €29. Nevertheless, the stock is higher by 0.8% in Frankfurt action as the discount was likely expected and priced in.
- The bank is tapping shareholders for €6.3B of the new equity and is getting another €1.75B from Paramount Holdings Services, an investment vehicle controlled by the Qatari royal family.
Jun. 2, 2014, 12:47 PM
- "It's all about costs," says a senior Deutsche Bank (DB -0.7%) official close to the bank's plans for investment banking. "We're not counting on any kind of uptick" from revenues.
- Is the statement at odds with Deutsche's pitch to investors (amid a planned $11B equity raise) billing itself as the last many standing in European investment banking - and ready to rake in business - as rivals like Barclays and UBS scale back their operations?
- As for cost cuts, the record of management is a good one, with €2.3B in reductions since co-CEOs Anshu Jain and Juergen Fitschen took over a couple of years ago. But another €3.3B is needed by year-end 2015 to meet a 12% ROE goal, and Morgan Stanley isn't so sure it will be met, seeing ROE of just 8% by 2016.
May. 22, 2014, 11:22 AM
May. 22, 2014, 8:58 AM
- "Deutsche Bank (DB) has become a big legal department with a banking subsidiary," says one frustrated shareholder at the company's annual meeting.
- On management's vow to be one of the winners in the banking world, the same shareholder - a representative of a larger owner group - notes Deutsche is losing ground to rivals and has performed worse than also legally tied up JPMorgan.
- Are there any banking scandals that Deutsche Bank is not involved in, asks another shareholder.
May. 19, 2014, 2:06 PM
- Raymond James upgrades E Trade Financial (ETFC +0.1%) to Outperform and set $24PT.
- Baird cuts its rating on American Realty Capital Properties (ARCP -1.2%) from Outperform to Neutral and set $15PT.
- Bank of America downgrades Deutsche Bank (DB -1.6%) to Underperform.
- Credit Suisse downgrades Fulton Financial (FULT +2.8%) to $14 Market Perform and set $14PT.
- Genworth Financial is downgraded by Morgan Stanley (GNW -0.5%) to Underweight and set $18PT.
May. 18, 2014, 9:34 PM
- "We are launching a package of measures designed to reinforce Deutsche Bank's (DB) aspiration to be the leading client-centric global universal bank," say co-CEOs Jurgen Fitschen and Anshu Jain of the bank's plan to sell €8B ($11B) of new shares to boost its capital ratios.
- Of the 360M new shares to be issued, the Qatari royal family has agreed to buy 60M, and the remaining amount will be sold to existing owners via a rights-offering. Insiders expect the bank will have to offer the stock at about a 25% discount to the current price, and the sale is expected to boost Deutsche's Tier 1 capital level to 11.8% vs. the current 9.5%.
- The equity raise isn't a huge surprise, and DB has been in the penalty box for months as investors discounted the share issuance.
May. 16, 2014, 7:29 AM
- "Being boastful, indiscreet and vulgar is not OK. It will have serious consequences for your career. And, I have lost patience on this issue.” So says Colin Fan, the co-head of Deutsche Bank's (DB) investment bank in a video to the lender's traders.
- The stern warning comes as the trading desks of banks worldwide face increasing legal and regulatory oversight. “You may not realize it, but right now, because of regulatory scrutiny, all your communications may be reviewed ... This includes your emails, your conversations and your conduct.”
- “Communications that run even a small risk of being seen as unprofessional stops right now."
May. 15, 2014, 11:08 AM
- Deutsche Bank (DB -1.3%) closes the book on a painful episode, agreeing to sell Cosmopolitan in Las Vegas to Blackstone (BX -2.5%) for $1.73B in cash. The bank became the proud owner of the resort in 2008 after foreclosing on developer Bruce Eichner, and has tried to make a go of it ever since (all the while having a For Sale sign up). It's never turned a profit and Deutsche's investment in the property sums to $4B.
- For Blackstone, the deal represents its first big gaming investment.
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