Most stock quote data provided by BATS. London (CNN Business) Deutsche Bank's $8.3 billion transformation comes with a promise: This time will be different. Last year New York financial regulators hand down a fresh fine, $205m this time, for “lax oversight” in the bank’s foreign exchange business between 2007 and 2013, when it was the world’s largest dealer in foreign currency. The talks fell apart in April, scuppering plans for a bank that would have been the eurozone’s second largest. Deutsche Bank AG said five former management board members are under investigation for tax evasion, days after the first two bankers were convicted in Germany’s long-running Cum-Ex scandal. The fine is a record for Libor transgressions. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. To analysts, the logic behind the restructuring program makes sense. Deutsche Bank restructuring includes 18,000 job cuts, GameStop's ascent: Reddit traders vs hedge funds, Why NASA calls landing the Mars rover '7 minutes of terror', Trivago CEO's son crashes live CNN interview, Here are some of Budweiser's best Super Bowl ads ever, Why major corporate donors halted funding to GOP, He called CNN after the election to share his biggest fear, Ever receive a package you didn't order? It consolidates its US operations into one, in an effort to take on the big beasts of Wall Street such as Goldman Sachs, and in 1999 it builds on its US foothold by snapping up New York-based Bankers Trust for $10bn (£8bn). Deutsche said it would “review all alternatives” – and at the weekend Sewing announces 18,000 jobs cuts, 20% of its workforce, with the axe falling worldwide. There also is the issue of being involved with Donald Trump and … The market value of, "We tried to compete in nearly every corner of the banking market at the same time," said Sewing. The company fell from fifth to sixth in the global rankings for that business between 2017 and 2018, according to banking research firm Coalition. "It's about what will happen to revenue in the meantime. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. All rights reserved. Deutsche Bank has said that it won't raise additional capital to fund its restructuring plan. Expert: Social media to extremism is like oxygen to fire, Watch this rocket launch from the wing of a jumbo jet, Wall Street is killing the European investment bank. There was a very quick meeting and that was it.”, An equities trader emerged from Deutsche Bank’s London offices and headed to the pub, saying: “I got laid off; where else would I go?”, Another equities trader in Hong Kong said their offices had been gripped by news of the layoffs: “There is hardly any work getting done today and folks are just mailing or calling friends or headhunters. The Times report comes after Germany's two largest lenders, Deutsche Bank and Commerzbank, confirmed on Sunday that they were in talks about a merger. For example, in April 2015 it had to agree to pay a combined $2.5 billion in fines to American and British authorities for its involvement in the Libor scandal, where several banks were accused of colluding to fix interest rates widely used … Will clients stick with us or is the game over?”, Banking expert Philip Augar says Deutsche had bowed to the inevitable: “Their ambition was to challenge the Wall Street giants. The latest news is that the son of a US judge, Esther Salas, who was overseeing a lawsuit against Deutsche Bank that has had financial dealings with Jeffrey Epstein, […] Deutsche’s boss Josef Ackermann, a Swiss banker, stepped down after a decade in the top job in May 2012. T he myriad of legal troubles it’s faced have cost Deutsche Bank an incredible amount of money in the last few years. Despite the streamlining measures, it cannot shake off the negative headlines. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. The bank is fined a further $258m in the US for doing business with US-sanctioned countries like Iran and Syria. But not everyone is … Even so, there's some concern that Deutsche Bank's plan to go all in on corporate money management won't yield the intended results. Deutsche Bank swung to a loss in the first quarter and the outlook for the full year darkened, underlining the impact of a costly overhaul and pressure on … Deutsche Bank was one of a series … A British banker, John Cryan, took over, but he left in 2018 having failed to get to grips with the bank’s problems. That's not the kind of momentum it needs. The US Congress issues subpoenas to Deutsche for documents related to the bank’s dealings with Donald Trump. Deutsche Bank’s drastic retrenchment marks the latest chapter in a dramatic fall from grace for a bank that was riding high until the banking crisis struck in 2008. ", CFO James von Moltke said Monday that the company wants to at least break even in 2020, but he cautioned that there's a "significant amount of uncertainty in that forecast.". The complaint alleges that Deutsche Bank AG “failed to properly monitor customers that the Bank itself deemed to be high risk, including, among others, the convicted sex offender Jeffrey Epstein.” Trump and Deutsche’s commercial real estate division settled in 2010 but Deutsche’s private banking business continued to lend to Trump. The statute laid great stress on foreign business: What Happened: As the Jeffrey Epstein saga continues to move forward, even more controversy is surrounding the case similar to when Jeffrey Epstein apparently killed himself. The German lender insists that … Maintaining our rating of underperform, speculative risk.” Graeme Wearden. Deutsche is fined $2.5bn (£1.7bn) by US and UK regulators for rigging the key Libor interest rate. Deutsche Bank has a three-decade-long relationship with Trump, as the bank helped finance several of the Trump Organization's real-estate projects.. A key character in The Big Short movie about the sub-prime scandal – played by Ryan Gosling – was based on a Deutsche Bank trader who was enabling investors to bet against the very market in which Deutsche was involved. It subsequently played a large part in developing Germany's industry, as its business model focused on providing finance to industrial customers. In the years leading up to the banking crash, Deutsche Bank is a leader in mortgage-backed securities, bundling up homeowners’ debt into huge packages and selling them on to investors. 1975– U.S. Congress deregulated the stock brokerage industry by stripping the NYSE of the power to determine the commission rates charged by its members. Deutsche Bank posts worst quarterly loss in four years, Deutsche Bank chief rebukes executives over suit-fitting on cuts day, Deutsche Bank 'faces US investigation' over work for Malaysia's 1MDB fund, Deutsche Bank bosses fitted for £1,200 suits as thousands lose their jobs, Deutsche Bank starts cutting London jobs with 18,000 at risk worldwide, Deutsche Bank boss Christian Sewing not squeamish about job cuts, By blaming 'industry challenges', Deutsche Bank is clutching at straws, Deutsche Bank staff sent home as 18,000 job cuts begin - as it happened, Profile of Deutsche Bank boss Christian Sewing, Nils Pratley: Deutsche Bank is clutching at straws, reports that senior Deutsche executives blocked employees from alerting the federal government about suspicious activity alerts, In 2008 Trump claimed the financial crisis was an unforeseen event. "[The] restructuring in our view is bold and for the first time not half-baked," JPMorgan Chase analysts Kian Abouhossein and Amit Ranjan said in a note Monday. Deutsche Bank upbeat on investment bank revenue Oct. 28, 2020 at 3:06 a.m. Shares of Deutsche Bank () climbed more than 12% on Monday after the German banking giant said it expects to report a first-quarter profit on higher-than-expected revenue. (Bloomberg) -- Germany’s top financial regulator is examining transactions by Deutsche Bank AG supervisory board member Alexander Schuetz linked to … The story so far Reuters. The advice given in this “Super Station 95” news article is excellent re preparing to cover your basic needs in the event of a global financial crash. But investors and analysts are skeptical that the bank can hit its new revenue targets amid a costly overhaul. In a late-night announcement last week, Deutsche Bank shocked investors with a warning that it will lose €6.2 billion in the third quarter — a record loss Christian Sewing, Deutsche Bank's chief executive, told staff that the cutbacks were regrettable but inevitable: “We are making deep cuts. The focus will instead be on corporate money management, a less glamorous but more reliable line source of revenue. Since 1998, the bank has lent him a total of more than $2 billion, and Mr. Trump owed Deutsche Bank more than $300 million at the time he was sworn in as president. When things went south, Deutsche continued to sell toxic products, but … This led to the infamous “sub-prime debacle”. Here’s how the 149-year-old bank ran into trouble. First published on Mon 8 Jul 2019 13.55 BST. Deutsche has been engulfed in a spiral of declining revenue, enduring expenses, a declining credit rating and hence, a rising cost of capital. What happened Shares of Deutsche Bank AG (NYSE:DB) traded up more than 13% on Thursday after U.S. money management firm Capital Group disclosed a 3.1% stake in … August 2016 — Deutsche Bank and Credit Suisse are removed from Europe’s blue-chip STOXX Europe 50 index due to the sharp decline in the market value of both stocks. The New York Times reports that senior Deutsche executives blocked employees from alerting the federal government about suspicious activity alerts linked to Trump and Jared Kusher in 2016 and 2017. The seizure and consolidation of power by the Nazis during the years of the Third Reich also greatly affected the Reichsbank.A 1937 law re-established the Reich Government's control of the Reichsbank, and in 1939, the Reichsbank was renamed the Deutsche Reichsbank (“Bank of the German Reich”, lit. If things don't go according to plan, Deutsche Bank could go from bad to worse. In 2008 the bank reports its first annual loss for five decades , losing €3.9bn. A high-level overview of Deutsche Bank Aktiengesellschaft (DB) stock. A former Deutsche Bank executive who reportedly signed off on some of the institution’s unorthodox loans to Donald Trump killed himself in his Malibu home on November 19. Deutsche Bank’s drastic retrenchment marks the latest chapter in a dramatic fall from grace for a bank that was riding high until the banking crisis struck in 2008. The German government had been in favour of the deal, but the two banks said the risks and costs were too great. After struggling to recover from the financial crisis, Deutsche attempts to organise a merger with another troubled German lender, Commerzbank. The bank continues to sell toxic mortgage-based investments even as the market turns south and it begins betting against such products itself. I personally greatly regret the impact this will have on some of you. "We simply spread ourselves too thin. Here’s a re-cap of what’s happened at Deutsche Bank over the past 15 months: In April of 2014, Deutsche Bank was forced to raise an additional 1.5 Billion of … Factset: FactSet Research Systems Inc.2018. It was during this transitional period that Charles Schwab opened a small brokerage in San Francisco a… Capitalising on the rapid pace of globalisation, it pushes into European markets such as Spain, where it buys Banco de Madrid. And they praised it for going further than in the past. ", The company will now try to return to its roots with. Up to the 2008 banking crash, Deutsche Bank was a leader in bundling up homeowners’ debt into huge packages and selling them to investors. He was succeeded by joint chief executives Anshu Jain and Jürgen Fitschen, who resigned in the wake of the Libor scandal. What impact could deplatforming Donald Trump have? But not everyone is so sure. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. The time horizon — the bank wants to offload its unwanted assets and increase core revenues by 10% to €25 billion ($28 billion) by 2022 — is making investors nervous. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Those assets will be sold over the coming years, freeing up money to invest elsewhere. It eventually reaches a $7.2bn settlement with the US Department of Justice. London (CNN Business)Deutsche Bank's $8.3 billion transformation comes with a promise: This time will be different. "The extent of the restructuring indicates an acceptance and willingness for change," Thomas Hallett, an analyst at Keefe, Bruyette & Woods, said in a note. Germany's biggest bank is cutting thousands of jobs. Deutsche Bank was founded in Berlin in 1870 as a specialist bank for financing foreign trade and promoting German exports. This will move Deutsche Bank closer to its origins as the go-to financier for Germany's exporters. What Happened: Deutsche Bank surveyed 627 market professionals last week, with 89% of respondents saying they find some financial markets to … Half of the floor is gone and others are just waiting to be called in. Below is an excerpt from an article posted by Super Station 95 News NY. The Frankfurt-based lender embarks on a period of global expansion, beginning with the acquisition of blue-blooded merchant bank Morgan Grenfell in the UK. As regulators continue to sift through the wreckage of the banking crash, Deutsche takes a large slice of the blame. In 2008 Trump claimed the financial crisis was an unforeseen event and refused to repay $330m to Deutsche, countersuing for $3bn compensation for Deutsche’s role in the crisis. Trump is thought to have borrowed at least $2bn from Deutsche with about $300m outstanding. :“Bank of the German Realm”) and placed under the direct control of Adolf … In 2017 UK and US regulators fine Deutsche more than $630m after finding that the lender failed to prevent $10bn of Russian money laundering via “mirror trades”, which had no economic purpose and served only to transfer money covertly. Deutsche Bank like many other foreign banks operating in the U.S. has suffered from the lack of a retail network of banking locations which can support their investment banking operations. MSNBC anchor Stephanie Ruhle spent 14 years working in investment banking for Deutsche Bank, where she climbed the corporate ladder and was rewarded for her success. Deutsche Bank floats on the New York Stock Exchange, cementing its position as one of the major players, not just on Wall Street but in global banking. “We have made mistakes, as everyone did,” said chief executive Josef Ackermann. Deutsche Bank’s $8.3 billion transformation comes with a promise: This time will be different. It could be a scam, Sales drop at Trump businesses hit hard by pandemic, toxic image, Biden signs executive order to promote $15 federal minimum wage, Ex-Trump official who supports Biden stimulus plan speaks out, Biden revokes Keystone XL pipeline permit, Many believed conspiracy theories about Trump and the election. The bank’s entanglement with the Trump family dates back to the 1990s when Bankers Trust continued to lend to him when others had pulled out. Sale of toxic securities leading up to the financial crisis. Discount brokers, which focused primarily on buying and selling securities, seized the opportunity to court more seasoned investors who might not require the advice or research offered by established brokers. The biggest source of anxiety is that Deutsche Bank has little room for error. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. Deutsche’s shares lost more than half their value under Cryan as it struggled to return to profitability. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Management is promising "no compromises" and "relentless execution discipline.". Disclaimer. Some people are saying their byes even before being called in.”, A banker leaving the Hong Kong office confirmed that Deutsche had begun implementing the cuts on Monday: “If you have a job for me, please let me know.”, A Singapore banker who remains in his job questioned whether Sewing’s plan would revive Deutsche’s fortunes: “The biggest question for us is where do we go from here if we don’t offer the whole suite of products? Deutsche was one of Trump’s biggest lenders, sticking by the real estate mogul when other US banks refused to lend after he went through a series of bankruptcies. And for about decade, it looked as though they’d pulled it off … They’ve been limping along for the last few years and I suppose this day had to come.”, Anke Reingen of Royal Bank of Canada said the restructuring was more radical than expected: “However, as the plan pushes the profitability improvement further out in time on our estimates, we see more value elsewhere in the sector. WHAT HAPPENS IF DEUTSCHE BANK FAILS? Matt S May 29 th 2016. The bank's statute was adopted on 22 January 1870, and on 10 March 1870 the Prussian government granted it a banking licence. All times are ET. © 2021 Guardian News & Media Limited or its affiliated companies. "Most of the questions today are not around whether they can cut costs," said Andrew Stimpson, an analyst at Bank of America Merrill Lynch. Shares fell more than 5% Monday in a stinging vote of no-confidence, and were trading another 4% lower on Tuesday. A sluggish European economy, post-financial crisis fines, costly new regulations and a reluctance to change all hurt its competitiveness. In September 2016, its shares slump on news that the institution faces a $14bn charge over mis-selling mortgage securities in the US. An internal investigation finds that the bank hired private detectives to spy on people it considered a threat to the bank – including a shareholder, a journalist and a member of the public. But not everyone is so sure. In the long-term interests of our bank, however, we have no choice.”, An equities trader in New York predicted that the layoffs on the equities floor would be swift: “It’s obviously going to suck for a couple of years.”, One IT worker leaving their City of London office said the bad news was dished out briskly on Monday morning: “I was terminated this morning. He was succeeded by Christian Sewing, who said yesterday the bank had “no choice” in axing 18,000 staff. All rights reserved. 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