|Bid||7.24 x 40000|
|Ask||7.25 x 36900|
|Day's Range||7.24 - 7.31|
|52 Week Range||6.44 - 9.47|
|Beta (3Y Monthly)||1.62|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||5.53|
In a major blow to U.S President Donald Trump, a federal appeals court on Tuesday ruled that Deutsche Bank and Capital One had to comply with congressional subpoenas and hand over years of Trump's private financial records to House Democrats. The Manhattan-based 2nd U.S. Circuit Court of Appeals rejected Trump's bid to block two House of Representatives committees from enforcing the subpoenas, which were issued in April, months before the impeachment inquiry began. Two House Committees had asked Deutsche Bank for records related to Trump, three of his children and the Trump organization. They also requested that Capitol One hand over records related to the Trump Organization's hotel business. Lawmakers said these requests are part of a wider investigation into money laundering and foreign influence over U.S. politics. Deutsche Bank has long been a principal lender for Trump's real estate business. A 20-17 disclosure form showed that Trump had at least $130 million dollars of liabilities to the bank. Congressional investigators have already identified possible failures in Deutsche Bank's money laundering controls in its dealings with Russian oligarchs… AND in 20-17, the Bank agreed to pay regulators in the U.S. and Britain over $600 million dollars in fines for organizing $10 billion dollars in sham trades that could have been used to launder money out of Russia. Trump has broken from tradition by not releasing his tax returns as a candidate in 2016 and as president. He is expected to appeal the latest ruling to the Supreme Court, where he is already appealing two other lower court decisions requiring the disclosure of his financial records.
Germany's Deutsche Bank could now be under closer scrutiny by US justice officials .. Over its role in Danish lender Danske Bank's huge money laundering scandal. Sources tell Reuters the Department of Justice has in recent weeks stepped up investigations ... And is working with Frankfurt prosecutors. Danske's admissions last year that 200 billion euros of suspicious payments flowed through its Estonia branch triggered probes worldwide. The bulk of payments - sources have previously told Reuters - were processed by Deutsche. One source says the new line of inquiry is over whether Deutsche helped move tainted money from Danske into the US. If so, it could lead to steep financial penalties. Deutsche has already paid 700 million dollars in fines by US and British regulators over a separate money laundering case. A spokesman for the German lender said it had significantly improved controls in recent years. But the sources say investigators are also looking at whether it was too slow to report suspicious transactions.
Deutsche Bank named Christian Berendes, a veteran of more than 20 years at Germany's largest lender, as its new head of government and regulatory affairs on Monday. Berendes will succeed Karin Dohm, who has led the department for four years and will take on new responsibilities, in January, Deutsche Bank said in a statement.
Deutsche Bank (DB) and Frankfurt prosecutors reach a settlement for 15 million euros ($16.5 million), related to the probe of German client interactions with foreign companies set up by Regula Ltd.
(Bloomberg) -- Deutsche Bank AG Chief Executive Officer Christian Sewing addresses shareholders on Tuesday, five months into a historic restructuring that so far has failed to arrest a long decline in revenue.Sewing, who is scheduled to speak at the bank’s first investor day in four years, can point to success in selling down unwanted assets and reducing costs. But investors are likely to press him on how he wants to meet mid-term targets and what he’s doing to offset headwinds. Plans for the once mighty fixed-income unit may also feature prominently.“We expect only fine-tuning to targets, acknowledging a more difficult outlook” for revenue, Credit Suisse Group AG analysts led by Jon Peace wrote in a note on Thursday. The bank’s profitability target could become more sensitive to the economic and market environment, the analysts wrote.What’s the biggest challenge?Investors are concerned that Sewing will struggle to reverse a protracted decline in revenue, especially from trading fixed-income securities. The bank has already had to walk back its revenue goal, in part because its assumptions about interest rates and the economy were too optimistic. Third-quarter earnings showed all but one of the businesses Sewing is keeping continued to shrink.Sewing had initially pledged to lift revenue in the core bank to 25 billion euros ($27.7 billion) by 2022, equal to an annual growth rate of 2%. The bank has since softened that goal to between 24 billion euros and 25 billion euros.“We fear revenue attrition will be worse than the company expects,” Citigroup Inc. analysts led by Andrew Coombs wrote in recent note. A capital increase by the bank can’t be ruled for as long as it hasn’t provided estimates of the impact from new capital requirements, the analysts wrote.What’s going to happen to the investment bank?Deutsche Bank’s investment banking heads -- Mark Fedorcik for the business of advising companies on deals and raising money, and Ram Nayak for fixed-income trading -- are likely to tell investors that the actions they’re taking will eventually stem the unit’s long decline. The lender has highlighted its leading role on various initial public offerings since the strategy announcement as a way to show it can keep market share despite the restructuring.Revenue from deal advisory rose last quarter, but it’s been contracting in other parts and overall in the division. Analysts don’t predict this will change anytime soon. The bank has also been debating how much to cut back the business of trading securities linked to interest rates.What will the bank say about efforts to grow?The corporate bank under Stefan Hoops is central to Sewing’s plan for growing the lender. Among other things, the division will discuss a project called contextual banking that will enable companies to finance certain assets on a pay-per-use basis, the unit’s digital head, Thomas Nielsen, said at a conference on Wednesday.The retail unit now, known as Private Bank, will likely highlight attempts to lift prices for services, said people familiar with the matter. The bank has recently stepped up its effort to offset the margin pressure from negative interest rates, partly by charging clients for large deposits or introducing fees on some basic services such as checking accounts that used to be free.The division, led by President Karl von Rohr, may also announce a decision to dissolve the separate legal structure around its German unit, the people said, asking not to be identified discussing private information. The plan could save the bank more than 100 million euros in annual costs, people briefed on the matter have said previously.What’s it done to shrink?One achievement Sewing can tout is the bank’s progress on ridding itself of unwanted assets since it moved them into a wind-down unit, led by Ashley Wilson and Louise Kitchen. The lender has begun to transfer the business that services hedge funds to BNP Paribas SA and sold various portfolios of assets including equity derivatives and emerging-market debt, people familiar with the matter have said.At the same time, some analysts have expressed concern at the high losses the wind-down unit has been incurring. Analysts surveyed by the bank expect the division’s pretax loss to hit 3.2 billion euros this year and 2.2 billion euros in 2020.Deutsche Bank has also continued to cut costs and said previously that it’s on track to meet its target to keep costs adjusted for restructuring expenses below 21.5 billion euros this year, and below 17 billion euros in 2022. Analysts doubt Sewing can reach the latter goal.What’s in store for the bank’s asset manager DWS?The bank’s asset management arm DWS, which has been publicly traded since early 2018, will hold a separate investor event on the same day. Like the CEO of his parent company, DWS chief Asoka Woehrmann has highlighted cost savings and a stronger focus on sustainability products as a way to lift profit.Sewing has said he wants to turn DWS into a top 10 asset manager globally, an ambitious goal. Woehrmann has said he will need to take over another large company to achieve that target. Deutsche Bank earlier this year held informal talks with UBS Group AG about merging both banks’ asset management units, but those discussions fell apart.(Updates with details on costs in 14th paragraph)\--With assistance from Nicholas Comfort.To contact the reporter on this story: Steven Arons in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Dale Crofts at email@example.com, Christian BaumgaertelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In Thursday’s elections, Boris Johnson has a decent shot at winning a workable majority in Parliament to pull the U.K. out of the European Union. This could be a turning point for Europe—rather than enabling consolidation of the continental bloc, Brexit will provide the contrast that blows it apart. The Conservative Party is running on a platform to push through a transition agreement to leave the European Customs Union and accomplish simple free trade.
(Bloomberg) -- The euro may take pundits by surprise next year by climbing faster than expected.The common currency is seen rising to $1.12 by March before a steady ascent to $1.16 by the end of 2020, up from around $1.1065 now, according to a Bloomberg survey. Yet some analysts could be underestimating the prospects for fiscal stimulus, a growing chorus against the European Central Bank’s sub-zero interest rates and the potential for a pick-up in volatility that would threaten the viability of using the euro as a funding currency for carry trades.An increasing number of banks are becoming more optimistic on the euro’s 2020 prospects. Morgan Stanley is the most bullish on Wall Street, betting on the euro rallying nearly 5% to $1.16 in the first quarter as one of its top trades. ABN Amro Bank NV and Commerzbank AG also see a faster climb to $1.14 by March, as the region’s economy stabilizes and Brexit uncertainty fades. And options traders are betting on gains for the common currency.The new ECB President Christine Lagarde, who will give her first policy meeting announcement Thursday, seems focused on the need for greater fiscal stimulus to tackle the region’s growth and inflation troubles. She has acknowledged that “the ECB’s accommodative policy stance has been a key driver of domestic demand during the recovery, and that stance remains in place,” which in theory supports bets on further interest-rate cuts next year, as current market pricing suggests.This sub-zero monetary stance is being increasingly challenged by euro-zone finance chiefs, complaining about its detrimental impact on savings and pension systems. And they are not alone. Pacific Investment Management Co. warns that negative rates may be doing more harm than good as they squeeze banks’ profitability, depress market returns and create a “money illusion” in which savers feel poorer and thus cut consumption.Policy makers counter that negative rates wouldn’t last so long if governments did more to stimulate their economies. The ECB may end up tweaking its inflation goal to 2% over the medium term, which could finally result in a pick-up in inflation expectations. Then the market may need to start pricing in a move away from negative interest rates, effectively reducing the euro’s allure as a funding currency.This year, the potential for a euro rally -- as predicted by strategists at the start of 2019 -- has been suppressed by the use of the euro as a funding currency. As Europe’s bond yields are among the most negative in the world, when global risk appetite is high investors have sold the euro to buy higher-yielding assets elsewhere.Yet some see this carry-trade idea as antiquated, and using the euro as a liability may not be the way forward. Positioning may be largely overstretched, given euro-funded carry trades resulted in returns for 20 of the 23 emerging-market currencies tracked by Bloomberg so far this year.A drop in euro volatility to record lows supported these emerging-market currencies as they managed to overcome global risks this year and pare the losses seen in 2018. While traders may be facing a new era in currency volatility, where low expectations are the norm, current levels may not be sustainable for long.A repeat of price action following the summer of 2014, when volatility rebounded from then-record lows to enter a two-year bullish trend, could be due.Current volatility levels reflect a wait-and-see stance by investors on trade talks and Brexit, so any resolution on those events, market friendly or not, may be accompanied by greater price swings that would hurt carry trade positions and therefore support the euro.In the options market, bullish wagers over the one-year horizon stand at their highest level since April 2018, according to risk reversals, a barometer of sentiment and positioning. This has yet to be reflected in the cash market, which has deviated this year from a long-lasting correlation with options trading.From a technical perspective, charts offer something to bulls and bears alike, with a slight bias on holding long positions. The euro is challenging a bearish trend channel that started in early 2018, with key resistance from its 55-weekly moving average coming at $1.1210.A move above that would target $1.1412, the high on June 25. Failure to extend gains would signal the euro is currently at a powerful wave three of a major Elliot Wave formation that started in February 2018, which would eventually target a drop to $1.05.Over the short-term, however, things are more clear, as the euro seems to have established a bottom at $1.0980-90 and looks to test its 233-daily moving average at $1.1186.NOTE: Vassilis Karamanis is an FX and rates strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice(Updates prices throughout.)\--With assistance from Anooja Debnath.To contact the reporter on this story: Vassilis Karamanis in Athens at firstname.lastname@example.orgTo contact the editors responsible for this story: Dana El Baltaji at email@example.com, Neil Chatterjee, William ShawFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
President Donald Trump and three of his children asked the Supreme Court on Friday to shield records held by Deutsche Bank and Capital One from House Democrats.
Frankfurt prosecutors have dropped an investigation into two Deutsche Bank employees accused of aiding tax evasion through a former Virgin Islands unit, although they have fined the lender for compliance lapses. In a two-day raid a year ago, 170 police officers searched Deutsche Bank's headquarters in Frankfurt, hitting its share price just as management was battling with losses and a string of other financial and regulatory scandals. Sources close to the investigation said as recently as July that prosecutors were set to escalate the investigation, planning raids on wealthy former clients after searching the homes of eight people in May.
Frankfurt prosecutors have forced Deutsche Bank to pay out €15m for shortcomings in money-laundering controls but have dropped a criminal investigation into suspected tax evasion at Germany’s biggest lender. and improved its control functions. “The prosecutors have not found any instances of criminal misconduct on the part of Deutsche Bank employees following the raid of our Frankfurt office in November 2018,” a Deutsche spokesman said on Friday, adding that the investigation had a “heavy impact” on the bank last year.
Orange will carve out its mobile towers in Europe from its main business with a view to consolidation or stake sales, as the French telecoms group targets a return to “significant” growth. Several European telecoms companies, including Vodafone, Telefónica, Telecom Italia and Deutsche Telekom, have monetised their towers by splitting them from their core operations.
The House Financial Services and Intelligence committees asked Deutsche Bank and Capital One for records of Trump’s business ventures.
from scrutiny as Deutsche Bank was ordered to disclose his records to Congress. The decision on Tuesday by a federal appeals court in New York adds to a string of cases that will probably be ultimately decided by the Supreme Court, which Mr Trump has asked to support his claims of immunity from investigation.
This article originally appeared on MarketWatch, a sister publication of Barron’s. We publish articles from other Dow Jones sites when we think our readers will enjoy them. Is that you, Santa Claus? December has kicked off with upbeat news on Chinese factory activity.
FRANKFURT/NEW YORK (Reuters) - The U.S. Department of Justice has in recent weeks stepped up its investigation into Deutsche Bank's role in the 200 billion euro ($220 billion) Danske Bank money laundering scandal, four people familiar with the inquiry told Reuters. One source said the DoJ's new line of inquiry is whetherDeutsche helped move tainted money from Danske , Denmark's largest lender, into the United States. Officials from the DoJ, who have been working closely withEstonian prosecutors for around a year, have also beguncooperating with Frankfurt state prosecutors, the sources said.
Deutsche Bank’s top internal dealmaker has quit to join a hedge fund, underlining the challenge Germany’s biggest bank faces in keeping senior executives during the most radical restructuring in its 149-year history. James Ruane, who has overseen Deutsche Bank’s own internal merger and acquisition activity — including the transfer in September of its prime brokerage business to BNP Paribas — is joining hedge fund Bayview International as head of European special situations. The exit of Mr Ruane, who was part of chief executive Christian Sewing’s inner circle that led the aborted takeover talks with Commerzbank earlier this year, comes a week before the bank holds a capital markets day at which it will hope to convince investors that a reshaping of the bank to focus on its domestic market, as well as Europe, remains on track.
Deutsche Bank (DB) vends bad assets worth $50 billion to Goldman Sachs as part of its broader restructuring efforts to restore profitability.
To conduct the transaction, Deutsche is using a capital release unit — a bad bank — to unwind $195 billion in leverage exposure to poor-performing securities. The firm aims to reduce leverage exposure by almost 50% by the end of this year. Updated capital and leverage targets.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Deutsche Bank AG has found a willing partner in Goldman Sachs Group Inc. as the German lender tries to quickly offload billions of euros worth of unwanted assets.The U.S. bank bought securities with a notional value of about 40 billion pounds ($51 billion) from the German firm, people briefed on the matter said. It’s at least the second time Goldman Sachs has taken advantage of the sweeping deleveraging effort underway since Deutsche Bank Chief Executive Officer Christian Sewing unveiled a new turnaround plan in early July.In September, the U.S. investment bank purchased the Asian portion of a portfolio of equity derivatives that the German lender had put up for sale, people familiar with the matter said at the time. Barclays and Morgan Stanley each bought a portion too, the people have said. And BNP Paribas previously agreed to take over the hedge fund business.The assets bought by Goldman in the latest deal are tied to emerging market debt and were previously housed in Deutsche Bank’s wind-down unit, one person said. They asked not to be identified discussing the private deal. Representatives for Deutsche Bank and Goldman Sachs declined to comment.Deutsche Bank shares rose as much as 1.9% on the news, paring this year’s decline to about 4.4%. That compares with an increase of about 5% for the wider industry.Deutsche Bank’s wind-down unit is a cornerstone of the July revamp under Sewing. Its goal is to release tied-up capital by reducing assets quickly while avoiding deep write-downs on them. Ultimately, that’s expected to help the bank replenish its capital buffers, which the CEO is currently drawing down to cover the costs of the restructuring.For Goldman, it’s an opportunistic move that allows the firm to help burnish its brand and could aid in its expansion of market share. The move isn’t designed to be a major profit driver but allows Goldman to expand its scale and take advantage of a competitor shrinking its trading presence. Large, established trading desks at the big banks have been benefiting from some of their smaller competitors ceding ground to increase their dominance.Sewing has vowed to cut the leverage exposure -- a regulatory measure of risk -- in the wind-down unit to 119 billion euros ($131 billion) at the end of the year, from 177 billion euros at the end of September.The unit trading emerging-market debt had a weak third quarter, though momentum picked up at the end of the period, the bank said in late October. Deutsche Bank plans to maintain a “robust, broad-based” emerging markets debt-trading platform, it said. The portfolio just sold to Goldman Sachs was moved into the wind-down unit in July, one person said.It’s not clear how much the latest sale will contribute to Sewing’s goal since an asset’s notional value says little about its impact on the balance sheet.(Adds Goldman context in seventh paragraph.)\--With assistance from Sridhar Natarajan.To contact the reporters on this story: Justin Carrigan in Dubai at firstname.lastname@example.org;Steven Arons in Frankfurt at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Ross LarsenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Deutsche Bank has sold $50 billion in unwanted assets to Goldman Sachs as part of its restructuring, three people with knowledge of the matter said on Wednesday. As part of a broad overhaul, Deutsche has hived off billions in assets into a so-called capital release unit, also called a bad bank. The sale to Goldman marks the latest in a series of disposals of such assets.