Why DB's fair market value should be in teens? DB was just downgraded to sell by analysts.
Deutsche Bank announced on April 29 that it would raise as much as 4.8 billion euros ($6.3 billion) to bolster capital as regulators heighten requirements. Deutsche Bank’s U.S. arm would need a $13 billion infusion of capital if the Fed’s rule goes through, Goldman Sachs analysts said in a March 1 note, adding that the German firm would be the hardest-hit European bank under the rule.
“The daisy-chain effect would create systemic harm to the U.S. financial system as well as lead to global financial instability,” said Jacques Brand, chief executive officer of Deutsche Bank North America, and Bill Woodley, deputy CEO, in a letter to the agency.
An internal transfer of capital of that scale would drop the Frankfurt-based lender’s capitalization elsewhere, “which could increase pressure for an external recap, in our view,” the analysts wrote. “We downgrade our rating to sell.”