May. 11, 2014, 5:13 AM| Comment!
May. 8, 2014, 12:30 PM
- Jefferies upgrades AmREIT (AMRE +1.5%) to Buy, and sets a $19 PT.
- First Financial Bankshares (FFIN +0.6%) is upgraded by Macquarie to Neutral.
- PennyMac Financial Services (PFSI +5.8%) is upgraded to Buy at Compass Point with $18.50 PT after Q1 results yesterday.
- Raymond James ups Main Street Capital (MAIN +0.3%) to Outperform with $34PT ahead of its quarterly earnings.
- CommonWealth REIT (CWH +1.2%) is downgraded to Sell by Stifel Nicolaus. Earlier: CommonWealth REIT beats by $0.01, beats on revenue
- UBS downgrades Deusteche Bank (DB +1.4%) to Neutral.
- Provident Financial Holdings (PROV -0.1%) is downgraded to Underperform by Raymond James.
- Evercore Partners downgrades Zion Bancorp (ZION +1.4%) to Equal Weight with $28 PT.
- Fidelity & Guaranty Life (FGL +0.3%) is cut to Neutral at Credit Suisse
May. 5, 2014, 10:20 AM
- A check of the global banks finds the group pacing market declines in morning action after Friday night's warning on Q2 trading revenue from JPMorgan (JPM -2.2%).
- Nomura's Steven Chubak is first out with lower JPMorgan earnings estimates.
- Jim Cramer sums up sentiment: "This has been a house of pain. You can't own these right now. You just can't."
- Morgan Stanley (MS -1.9%), Goldman Sachs (GS -1.5%), Citigroup (C -1.2%), and Bank of America (BAC -1%), Deutsche Bank (DB -1.2%). Far less trading dependent than the other Too Big Too Fails is Wells Fargo (WFC -0.2%).
- The iShares DJ U.S. Broker-Dealer ETF (IAI -1.2%)
- XLF -0.7%, KBE -0.8%
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, PFI, FXO, FNCL, KBWB, FINU, KCE, RWW, RYF, PSCF, FINZ, KBWC
May. 2, 2014, 5:02 AM
- President Obama is due to meet German Chancellor Angela Merkel today, when the Ukraine crisis is set to be high on the agenda.
- The U.S. wants to be able to widen the sanctions against Russia - which have so far been limited - to the broader economy if the situation continues to escalate. However, Merkel is under pressure from major German companies such as Siemens (SI), Deutsche Bank (DB) and Volkswagen for no further action.
- Meanwhile, Ukrainian forces have launched an attack to retake the eastern city of Slaviansk from pro-Russian separatists, who have shot down at least one helicopter gunship, killing the pilot. Ukraine officials indicated that the use of anti-aircraft missiles shows that Russia is behind the ferment.
- The IMF has warned that should Ukraine lose territory in the east, the fund would probably have to add to the country's $17B international bailout.
- Russia's Micex index is +0.1% and the USD-RUB is +0.6% at 35.814 rubles.
- More on Ukraine
- ETFs: RSX, RUSL, ERUS, RUSS, RSXJ, RBL, GUR, ESR, RUDR
May. 2, 2014, 3:42 AM
- Goldman Sachs (GS) and Morgan Stanley (MS) are on a Fed list of 15 U.S. and foreign financial firms that "may pose elevated risks to U.S. financial stability" and so will receive extra supervision by a cross-disciplinary special unit called the Large Institution Supervision Coordinating Committee.
- Other firms on the list include JPMorgan (JPM), Bank of America (BAC), AIG (AIG), GE (GE), Citigroup (C), Wells Fargo (WFC), State Street (STT), Prudential Financial (PRU), Barclays (BCS), Credit Suisse (CS), Deutsche Bank (DB) and UBS (UBS).
- As a major clearing and custody bank, Bank of New York Mellon (BK), will also receive the extra attention.
Apr. 29, 2014, 9:39 AM
- Capital shortfalls will need to be covered within six months for those lenders failing under the EBA's baseline stress test scenario, while banks failing under the adverse scenario will have nine months to fix things.
- ECB Vice-President Constancio: "Banks should start to consider what private sources of capital could be raised as a result of this exercise and plan accordingly."
- Earlier: The EBA unveils stress test criteria. 124 banks from 28 EU states are subject to the exams. Among the larger ones: DB, BNPQF, BNPQY, SCGLY, SAN, BBVA, UNCFF, UNCFY, IRE, NBG, CRZBY, CRARY.
- European financial sector ETF: EUFN
Apr. 29, 2014, 8:57 AM
- Incoming draft rules from the EBA on how banks value illiquid assets could cause a capital gap of up to €2B warns, Deutsche Bank (DB) CFO Stefan Krause, and force the need for an equity raise. Krause's comments came as he and co-CIO Anshu Jain took questions following the bank's quarterly earnings report. The €2B figure is roughly inline with what analysts had been expecting.
- Previously: Deutsche Bank net profit drops 34% but beats expectations
- The stock's ahead 2.7% premarket, it's big decline this year likely already pricing in a capital raise and this morning's weak quarterly results.
Apr. 29, 2014, 3:36 AM
- Deutsche Bank's (DB) Q1 net profit slumped 34% to €1.08B ($1.5B), although the figure exceeded consensus of €1.01B.
- Revenues dropped 11% to €8.4B.
- Pretax profit plunged 30% to €1.68B vs consensus of €1.4B.
- Revenue from trading fixed income, currencies and other products declined 10% to €2.43B but was also above expectations of €2.12B.
- Basel III Tier 1 capital ratio declined to 9.5% from 9.7% in December.
- After markets closed yesterday, Deutsche Bank said it plans to auction at least €1.5B in "contingent convertible" bonds to help increase capital levels and meet stricter leverage limits.
- Shares are +2.5% in Frankfurt. (PR)
Apr. 24, 2014, 7:24 AM
- One year after co-CEO Anshu Jain proclaimed the bank's "hunger march" for more capital was over after a big equity raise, executives at Deutsche Bank (DB) are being forced to admit another share issuance is back on the table, reports the FT.
- "Plan A" - improving capital by squirreling away earnings, shrinking the asset base, and cutting costs - may be too little to late, leading to the reemergence of "Plan B," a rights issue.
- "This is a bank that has been very reluctant and very late in recognising that the world has changed,” says Pimco's Philippe Bodereau. “I think they should change course as an equity hike is discounted in the share price already.”
- The bank's capital ratio has improved from 5.9% about two years ago to 9.7% at 2013's end. It's a dramatic improvement, but other banks have boosted their ratios as well and Deutsche again ranks in the bottom of its peer group.
Apr. 11, 2014, 7:58 AM
- The suit was dismissed on technical grounds, as the FHFA filed the charges against Deutsche Bank (DB) within the 6-year statute of limitations, but did not have standing to sue. HSBC - the trustee of the $1.4B in mortgage securities - did have standing, but did not join the case until just after the 6-year period had expired.
Apr. 10, 2014, 7:33 AM
- Deutshce Bank (DB) put a London currency saleswoman - Kai Lew - on leave last month for inappropriate communication with the Monetary Authority of SIngapore (MAS), reports Bloomberg.
- Part of Lew's job was to handle business with central banks. While among at least two dozen employees who have been fired, suspended, or put on leave by the big banks - she appears to be the first in sales.
- Last month the Bank of England suspended an employee amid its own investigation of employee involvement with rate-rigging.
Apr. 8, 2014, 8:27 AM
- Proposed new EU rules concerning how banks value certain assets on their books could force Deutsche Bank (DB) to set aside as much as €2.2B in additional capital, reports Reuters, citing analyst estimates.
- The new rules would force conservative valuations, independent price verification, and consideration of additional costs when marking to market.
- The U.K. is in the lead on these rules, having already begun with them, but some EU countries - including Germany - have yet to implement the requirements.
- Should the rules come in force, analysts don't expect Deutsche to have to resort to a share sale, but instead raise the capital through retained earnings (lower or canceled dividends), costs cuts, and balance sheet shrinkage.
Apr. 7, 2014, 1:13 PM
- Nine months ago, the European Commission accused 13 banks of blocking Deutshce Boerse (DBOEY) and CME from entering the lucrative CDS business between 2006-09, but the banks, reports Reuters, are set to fight those charges at a closed-door hearing next month.
- Should they lose, the banks could be subject to fines of up to 10% of their global CDS turnover - not a small amount given the size of the market.
- Those charged and expected to fight: C, GS, DB, BAC, BCS, BNPQY, CS, HSBC, JPM, MS, RBS, and UBS.
Apr. 3, 2014, 7:29 AM
Apr. 1, 2014, 4:43 AM
- A group of investors from across the U.S. and Caribbean have filed a class-action lawsuit against 12 banks for allegedly colluding to manipulate currency rates.
- The firms being sued include Bank of America (BAC), Barclays (BCS), Citigroup (C), Credit Suisse (CS), Deutsche Bank (DB), Goldman Sachs (GS), HSBC (HSBC), JPMorgan (JPM), Morgan Stanley (MS) and RBS (RBS).
- The investors include city and state pension plans such as the City of Philadelphia and the State-Boston Retirement System.
- The suit adds to multiple investigations by international authorities into forex manipulation, the latest being the Hong Kong Monetary Authority.
Mar. 31, 2014, 1:24 PM
- Amid probes of bank hiring practices in China, Deutsche Bank (DB +1.2%) is considering bowing out of working on the IPO of China General Nuclear Power Group, reports Bloomberg. Deutsche employs the daughter of China General Nuclear's Chairman, He Yu, say sources, and has been helping to put together the IPO for the last nine months, but late last year received an SEC tap on the shoulder about its hiring in China.
- JPMorgan has dropped out of two IPOs since a probe began into its hiring practices, according to those close to the matter.
- Deutsche's role in bringing China Nuclear to market may also not sit well with the German government which wants to shut all nuclear reactors in that country by 2022.
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