3

Is Deutsche bank about to fall???

From 2008 subprime crises–All investment bank tries to recover whereas Deutsche bank looks like continuously falling down after back to back scandals taking place. Let’s have a quick highlights on DB span after 2008:
*For the 2008 financial year, Deutsche Bank reported its first annual loss in five decades,despite receiving billions of dollars from its insurance arrangements with AIG, including US$11.8 billion from funds provided by US taxpayers to bail out AIG.
*On 3 January 2014 it was reported that Deutsche Bank would settle a lawsuit brought by US shareholders, who had accused the bank of bundling and selling bad real estate loans before the 2008 downturn. This settlement came subsequent and in addition to Deutsche’s $1.93 billion settlement with the US Housing Finance Agency over similar litigation related to the sale of mortgage backed securities.
*In January 2014, Deutsche Bank reported a €1.2 billion ($1.6 billion) pre-tax loss for the fourth quarter of 2013.
*In January 2016, Deutsche Bank pre-announced a 2015 loss before income taxes of approximately €6.1 billion and a net loss of approximately €6.7 billion.
*In November 2018, the bank had their Frankfurt offices raided by police in connection with ongoing investigations around the Panama papers and money laundering. Deutsche Bank released a statement confirming it would “cooperate closely with prosecutors”.
*During the Annual General Meeting in May 2019, CEO Christian Sewing said he was expecting a “deluge of criticism” about the bank’s performance and announced that he was ready to make “tough cutbacks”after the failure of merger negotiations with Commerzbank AG and weak profitability.
*On 8 July 2019, the bank began to cut 18,000 jobs, including entire teams of equity traders in Europe, the US and Asia. On the previous day, Sewing had laid blame on unnamed predecessors who created a “culture of poor capital allocation”.
reported a bigger than forecast quarterly loss of 3.15 billion euros ($3.5 billion) because of major costs stemming from its efforts to reshape its business.
Deutsche bank plays important role in global economy. If such a big bank fail, predictions are that whole economy will get impacted. Deutsche Bank act as a big gateway for European market and connects with rest of the world so there can be a chance of recession to come. After a drastic announcement of 18000employees cut now situation looks more horrible. They have announced to create a new basket to windup the business of equities from all over the world. Share prices are falling down rapidly on daily scale. Few comments positive and negative are coming from the various desk as well like this-
“I really can’t say that I see the positives in this plan. I remain a bitter curmudgeon,” said Barrington Pitt-Miller, portfolio manager at Janus Henderson Investors.
News are that this is another Lehmann brothers standing in front of our eyes and we will soon see the collapse. As per the post released on forbes”Deutsche Bank is known as the largest creditor to President Donald Trump.”
This story has been published from various agency feed without modifications to the text.

Ankita Gupta

3 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *