DB - Deutsche Bank Aktiengesellschaft

NYSE - NYSE Delayed Price. Currency in USD
7.12
+0.02 (+0.28%)
At close: 4:01PM EDT

7.37 +0.24 (3.37%)
Pre-Market: 8:23AM EDT

Stock chart is not supported by your current browser
Previous Close7.10
Open7.10
Bid7.36 x 21500
Ask7.37 x 47300
Day's Range7.06 - 7.16
52 Week Range6.61 - 13.17
Volume4,516,183
Avg. Volume5,065,570
Market Cap14.747B
Beta (3Y Monthly)1.47
PE Ratio (TTM)N/A
EPS (TTM)-1.12
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend Date2017-05-19
1y Target Est6.81
Trade prices are not sourced from all markets
  • The Zacks Analyst Blog Highlights: Deutsche Bank, HSBC, DBS and Banco Latinoamericano
    Zacksyesterday

    The Zacks Analyst Blog Highlights: Deutsche Bank, HSBC, DBS and Banco Latinoamericano

    The Zacks Analyst Blog Highlights: Deutsche Bank, HSBC, DBS and Banco Latinoamericano

  • Investment Bank Chief Garth Ritchie Defies Gravity at Deutsche Bank
    Bloombergyesterday

    Investment Bank Chief Garth Ritchie Defies Gravity at Deutsche Bank

    (Bloomberg) -- Garth Ritchie kept rising at Deutsche Bank AG long after the investment-banking division he leads began to fall. Gravity may finally be catching up.Ritchie, 50, has gained more and more power since 2005, helping to shape the investment bank even as it began sinking under legal probes, mounting costs and poor performance. He came close to leaving Germany’s biggest lender last year. Instead, he was promoted.Now, after climbing from the rowdy floor of the Johannesburg Stock Exchange to the upper reaches of one of the world’s biggest banks, his career may have stalled. Chief Executive Officer Christian Sewing is considering whether to replace him and other management board members, Bloomberg News reported last week. Investors have criticized Ritchie’s generous paycheck for last year, a period when shares fell by more than half. Adding to his woes, German prosecutors earlier this month identified him among about 80 suspects in a sprawling probe into alleged tax crimes.Ritchie’s supporters point to his passion, loyalty and perseverance when explaining his ascent and say he has brought stability at the top of the investment bank. Yet trading revenue fell by one-third under his leadership, and a fifth restructuring in just over four years is in the works.Some of the revenue decline was the result of decisions to stop offering products such as securitized trading, and elevated funding costs at Deutsche Bank coupled with challenges across the banking industry exacerbated the situation. The performance of the division headed by Ritchie was broadly in line with the market if adjusted for those effects, several people said. Still, some of Ritchie’s decisions compounded Deutsche Bank’s struggles, analysts say.“How has he survived?’’ said Chris Wheeler, who worked for three decades as a bank analyst in London. “This is perplexing in a business that is unforgiving. Since the crisis, he has moved up the pecking order, taking more and more responsibility. However, the performance of the trading businesses has not improved. In fact, it has deteriorated.”Favoritism, BackstabbingThis account is based on conversations with more than a dozen people familiar with the bank, including Ritchie supporters and critics. Ritchie declined to comment for this story, as did Charlie Olivier, a spokesman for Deutsche Bank in London.Ritchie prospered during a decade of turmoil for European lenders, outlasting colleagues and rivals in what one Deutsche Bank trader described as a “Game of Thrones’’ environment rife with favoritism and backstabbing. Just last year, Sewing promoted the silver-haired executive to deputy CEO and made him sole head of the investment bank, placing him in charge of a division that accounts for about half of the firm’s revenue. A few months later, his contract was renewed for five years, even though several investors made it clear they were unhappy with the appointment, according to people briefed on their views.Ritchie’s rise began in Johannesburg, where he excelled in rugby and finance. After graduating from the University of Port Elizabeth in the early 1990s, he went to work for Fergusson Bros. brokerage. Ritchie sat in a booth above the floor of the Johannesburg exchange, writing up complex equity trades and keeping binoculars close at hand to view the prices of securities on the board, his former boss, Niall Smith, recalled. “I expected a lot of him at that stage, and he delivered,’’ Smith said.Ritchie joined Deutsche Bank in 1996 and moved to the firm’s trading heart in London. He became head of European equities in a 2005 reshuffle and then global co-head after another overhaul on the eve of the financial crisis. In 2010, under CEO Josef Ackermann, he took sole control of the equities business and joined an executive committee overseeing the investment bank then run by Anshu Jain.Mirror TradesFive years later, in a restructuring designed to shore up the bank after years of scandal, Ritchie was promoted to head all trading businesses. Yet another shakeup came in 2017. Probes into interest-rate rigging and alleged Russian money laundering didn’t stop his ascent, and he was appointed co-head of the investment bank.Many of the issues that led to the bank paying more than $18 billion in fines and legal costs didn’t involve Ritchie’s equities unit. But the Russian mirror trades did. Ritchie helped oversee Deutsche Bank’s Russian equities business during the years when employees in Moscow ran a scheme that regulators called “highly suggestive of financial crime.” They said the bank shepherded more than $10 billion out of the country through stock transactions in which a Deutsche Bank counterparty in Russia would buy blue-chip shares for rubles, while the same stocks would be sold in London for dollars.Deutsche Bank executives, who missed a number of red flags, didn’t move to bolster controls until 2016, the New York Department of Financial Services said. The U.S regulator and the U.K. Financial Conduct Authority fined the lender about $630 million as a result of the trades.Internally, the matter was deemed a breakdown of Deutsche Bank’s rules, not poor oversight by Ritchie, according to people familiar with the matter.Straight-Talking, PragmaticRitchie’s rise has been cheered on by many of his colleagues, who describe him as a straight-talking and pragmatic manager willing to help out on pitches to clients.Under Ritchie’s leadership, the investment bank cut its balance sheet, reduced costs, stabilized senior management ranks and remediated many control issues, several people said. Others compared his tenure favorably with more chaotic eras in the past.Deutsche Bank Chairman Paul Achleitner was a driving force behind Ritchie’s 2015 elevation to the management board, according to people familiar with the matter. He was said to be impressed by Ritchie’s performance in late 2016, when the lender scrambled to retain client confidence amid a dispute with the U.S. Department of Justice over a settlement tied to the mishandling of mortgage-backed securities during the 2008 financial crisis.Some aren’t as positive. Revenue at Ritchie’s division slid 8% in 2018, and results from trading were lower than the industry average. His pay for the year more than doubled to 9 million euros ($10 million), including a bonus of 250,000 euros a month for his work on Brexit preparations. Outrage over his pay package was palpable at last month’s annual general meeting when only 61% of Deutsche Bank investors voted in favor of returning him to the board -- no other member got a lower approval rating.All European investment banks have struggled with low interest rates and competition from U.S. rivals. And Ritchie faced headwinds beyond his control, including higher funding costs, weakened credit ratings and a decision before his appointment to sever ties with thousands of clients and pull out of many countries.But some of Ritchie’s decisions have taken their toll. He has hung on to Deutsche Bank’s troubled U.S. operations and the equities-trading business, even though the latter has posted 15 straight declines in quarterly revenue. The business lost about $750 million last year, people familiar with the matter have said. Many analysts and investors have long urged the bank to make deeper cuts in those areas.Compensation CostsSlow progress in improving controls has been another hallmark of Ritchie’s division, even though the bank boosted know-your-customer staff. Sewing last year appointed a new chief operating officer, Frank Kuhnke, to speed up documentation of client relationships -- an area that was partly Ritchie’s responsibility.Other members of Deutsche Bank’s management board have also jousted with Ritchie over compensation costs at the investment bank. In 2017, he secured a round of special annual bonuses to shore up morale among traders and bankers. Yet the payouts contributed to the lender’s third consecutive annual loss, a major setback that precipitated then-CEO John Cryan’s ouster.“Ritchie shares responsibility for the destruction of shareholder value because he was responsible for the investment bank’s strategy,’’ said Lutz Roehmeyer, who helps manage 700 million euros including Deutsche Bank shares and bonds at Capitulum Asset Management in Berlin.Cum-Ex ProbeProsecutors in Cologne, Germany, have lit another fire for Ritchie. They made him –- and scores of other current and former Deutsche Bank employees –- a suspect in an industrywide probe into alleged tax crimes that took place through so-called Cum-Ex trades. Lawmakers say the transactions, which profited from double dividend-tax refunds, cost the German state at least 10 billion euros in revenue.According to the Cologne probe, Deutsche Bank had close links to some hedge funds that did nothing but Cum-Ex trades, lending them money and even sharing in some of the profits, Bloomberg has reported. Ritchie was among the most senior executives at the equities business from 2008 through 2011, when most of the trades took place.In a June 11 statement to Bloomberg, Ritchie denied being “personally involved’’ in Cum-Ex transactions and said he was confident the probe would show “no personal wrongdoing.’’ Deutsche Bank has said it “has not participated in an organized Cum-Ex market,’’ though it confirmed it was involved in Cum-Ex transactions of its clients. The bank also said prosecutors only started the probe to avoid running into statute of limitation issues.Ritchie’s fate will be decided in the next few weeks. Bloomberg News reported last week that Sewing may take over some of his responsibilities, and several people, including Yanni Pipilis, head of fixed-income trading, have been mentioned as possible replacements. Meanwhile, Ritchie soldiers on, telling people that he’s sticking around until Sewing says otherwise.(Adds chart after 21st paragraph.)\--With assistance from Nicholas Comfort and Karin Matussek.To contact the reporters on this story: Steven Arons in Frankfurt at sarons@bloomberg.net;Donal Griffin in London at dgriffin10@bloomberg.net;Sonali Basak in New York at sbasak7@bloomberg.netTo contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Robert Friedman, Ross LarsenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Timesyesterday

    Deutsche faces big hits on US leveraged-loan losses

    Deutsche Bank is facing multimillion-dollar losses within its US investment banking unit after the German lender struggled to offload two risky corporate loans. The losses will turn up the heat on Christian Sewing, Deutsche boss, and his management team. to boost meagre returns, including through the creation of a so-called “bad bank” to hive off troubled assets.

  • Fed Questions Deutsche Bank (DB) for 'Bad Bank' Proposal
    Zacks2 days ago

    Fed Questions Deutsche Bank (DB) for 'Bad Bank' Proposal

    Fed officials question Deutsche Bank (DB) to elaborate on its proposed plan of creating a "bad bank" and impact on the U.S. arm of the German lender.

  • Reuters2 days ago

    UPDATE 1-U.S. regulators ask Deutsche Bank to explain "bad bank" proposal -FT

    U.S. regulators have sought explanation from Deutsche Bank AG about its "bad bank" proposal and its impact on U.S. operations at the loss-making German lender, the Financial Times reported on Monday. Officials at the U.S. Federal Reserve are concerned on learning about Deutsche Bank's strategy and have sought further details of the plan, which is part of the lender's move away from investment banking, FT reported https://on.ft.com/2J8pt6S, citing sources. The Fed did not immediately respond to a Reuters request for comment on the matter.

  • U.S. regulators ask Deutsche Bank to explain 'bad bank' proposal: FT
    Reuters2 days ago

    U.S. regulators ask Deutsche Bank to explain 'bad bank' proposal: FT

    Officials at the U.S. Federal Reserve are concerned on learning about Deutsche Bank's strategy and have sought further details of the plan, which is part of the lender's move away from investment banking, FT reported https://on.ft.com/2J8pt6S, citing sources. The Fed did not immediately respond to a Reuters request for comment on the matter. Deutsche Bank reiterated an earlier statement without directly commenting on the FT report.

  • Financial Times2 days ago

    US Fed quizzes Deutsche on ‘bad bank’ plans

    US regulators have asked senior executives at Deutsche Bank to explain their “bad bank” proposals, seeking to address concerns about the potentially significant impact on the lender’s operations in the country. Officials at the Federal Reserve have in recent days spoken with key figures at the German bank to request further details of their plans, which form part of its shift away from investment banking, according to three people with knowledge of the situation.

  • Deutsche Bank Risk Gauges Hint Investors Endorse Turnaround Plan
    Bloomberg5 days ago

    Deutsche Bank Risk Gauges Hint Investors Endorse Turnaround Plan

    (Bloomberg) -- A recovery plan at Deutsche Bank AG may be starting to win the approval of investors.The cost of credit protection on the bank’s debt has fallen to the lowest in months, according to ICE Data Services. Deutsche Bank’s riskiest bonds, that stand first in line for losses if Germany’s biggest lender runs into trouble, have risen to the highest since May, according to data compiled by Bloomberg.The moves suggest reports of plans by Chief Executive Officer Christian Sewing, including cuts to the U.S. business, management changes and the potential creation of a bad bank that could house up to $56 billion of unwanted assets, are welcomed by investors, according to Jerome Legras, a managing partner at Axiom Alternative Investments in Paris.“The credit market is happy to see a loss-making unit be wound down and leverage being reduced,” he said. “The smaller Deutsche Bank gets, the stronger it is.”Deutsche Bank has gone from a top global investment bank to sick man of European finance as it struggled to adapt to the stricter regulation and more challenging markets seen since the global financial crisis. Sewing’s recovery strategy follows a decision to walk away from merger talks with smaller rival Commerzbank AG earlier this year.“Deutsche Bank is working on measures to accelerate its transformation so as to improve its sustainable profitability,” a Deutsche Bank spokesman said on Friday, without commenting on the latest market moves.Credit swaps insuring Deutsche Bank’s riskiest debt have fallen 68 basis points this week to the lowest since May 7, according to ICE Data Services. That’s outperformed a market average of 24 basis points on an index of junior swaps on European banks and insurers.Contracts referencing the bank’s next-riskiest class of bonds are holding near the lowest since April, according to the ICE data.New swaps that started trading last month and insure Deutsche Bank’s safest senior bonds have fallen to a record, about 30 basis points below their initial trading level in May. A decline in the price of these swaps can lower Deutsche Bank’s trading costs as counterparties use them as a reference for hedging.To contact the reporter on this story: Katie Linsell in London at klinsell@bloomberg.netTo contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net, Chris VellacottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Exclusive: Deutsche Bank braced for continued Fed restrictions on U.S. business - sources
    Reuters6 days ago

    Exclusive: Deutsche Bank braced for continued Fed restrictions on U.S. business - sources

    Deutsche Bank AG executives expect U.S. regulators to continue to impose restrictions on its Wall Street investment bank even if it passes an annual health check, three sources familiar with the matter said. Executives hope improvements the bank has made to its risk management and capital planning processes since failing last year's test will enable it to achieve a conditional pass this year, the sources said. The sources said their optimism is based on conversations with Fed officials over several months.

  • Deutsche Bank braced for continued Fed restrictions on U.S. business - sources
    Reuters6 days ago

    Deutsche Bank braced for continued Fed restrictions on U.S. business - sources

    Deutsche Bank AG executives expect U.S. regulators to continue to impose restrictions on its Wall Street investment bank even if it passes an annual health check, three sources familiar with the matter said. Executives hope improvements the bank has made to its risk management and capital planning processes since failing last year's test will enable it to achieve a conditional pass this year, the sources said. The sources said their optimism is based on conversations with Fed officials over several months.

  • Dell Technologies Stock Wins Its Second Buy Rating in a Month
    Motley Fool6 days ago

    Dell Technologies Stock Wins Its Second Buy Rating in a Month

    Fearless of the valuation, this banker rates the tech specialist's stock a buy.

  • TheStreet.com6 days ago

    Deutsche Bank Slumps Following NYT Report of U.S. Money Laundering Probe

    shares traded lower in Frankfurt following a report from The New York Times that suggested the troubled German lender is facing a U.S. money laundering probe. The Times said federal authorities are looking into how the bank handled reports of suspicious activity in certain accounts, some of which are allegedly linked to President Donald Trump's son-in-law a Jared Kushner. The Times also reported last month that Deutsche Bank management prevented staff from reporting the concerns to U.S. authorities, with one employee claiming she was fired for red-flagging the moves in and out of accounts tied to the now-defunct Trump Foundation.

  • As the S&P 500 bumps up against 3,000, Wells Fargo says cash in on gains
    MarketWatch6 days ago

    As the S&P 500 bumps up against 3,000, Wells Fargo says cash in on gains

    Our call of the day, from Tracie McMillion, head of global asset allocation strategy for Wells Fargo Investment Institute, isn’t expecting the S&P 500 has much more to give this year. She’s urging her clients to pare back if they start shooting higher.

  • Deutsche Bank (DB) Continues Revamping, To Shed Risky Assets
    Zacks6 days ago

    Deutsche Bank (DB) Continues Revamping, To Shed Risky Assets

    Deutsche Bank (DB) continues overhauling, which includes shedding 25% of its risky assets over the next few years, reports Reuters.

  • Financial Times6 days ago

    Deutsche faces US money-laundering probe

    Deutsche Bank is under criminal investigation in the US in connection with alleged failures to comply with anti-money laundering laws, a person familiar with the situation has confirmed. The investigation, first reported by The New York Times, is linked to a whistleblower, Tammy McFadden, a former compliance officer in the bank’s Jacksonville, Florida, office. One person with knowledge of the investigations said they were triggered after Steven Mnuchin, the Treasury secretary, referred the whistleblower’s complaints to the Financial Crimes Enforcement Network, which then referred the case to the Department of Justice.

  • Market Exclusive6 days ago

    Market Morning: Iran Downs Drone, Gold Breaks Through, Mexico Approves USMCA

    The Persian Gulf is Boiling Iran shot down a US drone in the Straits of Hormuz, the narrowest point of the Persian Gulf, the biggest oil shipping lane in the world. The Iran Revolutionary Guards claimed credit for the move, the first time the country has admitted to playing a role in blowing something up […]The post Market Morning: Iran Downs Drone, Gold Breaks Through, Mexico Approves USMCA appeared first on Market Exclusive.

  • FBI looking into Deutsche Bank after money-laundering report involving Kushner Cos.
    MarketWatch6 days ago

    FBI looking into Deutsche Bank after money-laundering report involving Kushner Cos.

    The FBI has reached out to a lawyer for a former Deutsche Bank employee who complained that the bank was ignoring suspicious transactions, including some involving Jared Kushner’s family real estate company.

  • Deutsche Bank seeks to shed risky assets as part of overhaul: sources
    Reuters7 days ago

    Deutsche Bank seeks to shed risky assets as part of overhaul: sources

    Deutsche Bank is aiming to cut up to a quarter of its riskiest assets in the next few years, people familiar with the matter said, shedding more light on how the German lender is trying to overhaul its business and revive profitability. In an internal bad bank, risk weighted assets remain on the bank's balance sheet until they are wound down.

  • Deutsche Bank’s Lost Decade Haunts Sewing as Key Overhaul Nears
    Bloomberg7 days ago

    Deutsche Bank’s Lost Decade Haunts Sewing as Key Overhaul Nears

    (Bloomberg) -- Christian Sewing has one more shot to reverse Deutsche Bank AG’s free fall as he prepares to announce “tough” cuts to the investment bank. It’s a daunting task.The chief executive officer is zeroing in on reductions to the trading unit that may result in the shuttering of U.S. equities trading, the creation of a non-core unit to wind down as much as 50 billion euros ($56 billion) in unwanted assets, and cuts to the rates business, people familiar with the matter have said. He is also considering a management shakeup to replace the head of the investment bank, the top compliance officer and the finance chief.The changes are shaping up to be the boldest move yet by Sewing, but analysts have questioned whether they would be enough. Over the course of a decade, the 149-year-old behemoth has gone from a top global investment bank to sick man of European finance. Five chief executives have so far failed to prepare the operation for a world of stricter regulation and more challenging markets, raising questions about its future.Here’s a look at the long series of missteps that have left Germany’s largest bank in a precarious bind:2019Deutsche Bank’s string of failed turnaround efforts is fueling concern inside the German government. Encouraged by the finance ministry, Sewing holds official merger talks with Commerzbank AG -- and even unofficial ones with UBS Group AG -- but decides against a deal. Instead, he pledges more “tough cuts” to the investment bank as he addresses frustrated shareholders at the annual general meeting in May.The shares fall to a fresh record low before the meeting, leaving them down more than 90% from the peak before the financial crisis. The bank raised almost 30 billion euros from investors over the past decade, yet its entire market value has slumped to less than half that amount. Investors back Sewing with just 75% of the votes, Chairman Paul Achleitner with even less. Sewing now has the “toughest job in European banking” as he seeks to deliver a decisive -- and likely expensive -- restructuring to investors reluctant to cough up any more cash.2018After posting three straight annual losses and admitting that he may miss his target for lowering costs, Sewing’s predecessor John Cryan is ousted in a weeks-long leadership struggle that conveys a sense of chaos in the upper echelons of the bank. Sewing soon announces a fresh turnaround plan, pledging to cut at least 7,000 jobs and scale back investment banking areas such as U.S. rates trading, the corporate finance business in the U.S. and Asia, and parts of the equities business.Yet after years of piecemeal adjustments, the bank is stuck in what Chief Financial Officer James von Moltke calls a “vicious circle” of declining revenue, sticky expenses, a lowered credit rating and rising funding costs. Sewing accelerates cost cuts and manages to post the first annual profit in four years. Growth, however, remains elusive: Television footage of police raids at its Frankfurt headquarters damage efforts to win back clients, as the bank’s history of misconduct and lax controls comes back to haunt it once again.2017Deutsche Bank taps investors for 8 billion euros in new money, the fourth time since 2010 that it’s raising capital. Cryan reverses his previous turnaround plan that had called for a sale of the consumer banking unit Deutsche Postbank AG. Now he wants to integrate it and instead sell a piece of the asset management business to help raise cash. The bank identifies more assets to wind down but once gain shies away from deeper cuts to the investment bank, let alone shutting down entire parts of the trading unit.Cryan does implement an unprecedented cut to the bonus pool that helps bring down costs while creating deep dissatisfaction inside the bank. The CEO says the bank is ready to return to controlled growth, though that remains wishful thinking. Investors signal they may stop supporting him unless performance improves by the time of the next shareholder meeting. Cryan hires former Goldman Sachs Group Inc. partner Peter Selman out of retirement to turn around the equities business.2016Deutsche Bank’s woes are exacerbated as the U.S. seeks $14 billion to settle a probe into the bank’s role in selling mortgage-backed bonds that were blamed for contributing to the 2008 financial crisis. That spooks clients, who worry about its strength as a counterparty. The firm suffers its worst hemorrhage of liquidity since the crisis, with private banks and money managers at one point pulling $10 billion in a single day.The company settles the probe months later for $7.2 billion, but the liquidity scare drives home just how damaged the franchise has become after years of botched turnaround efforts. Even before that episode, continued capital concerns and the turmoil caused by the Brexit vote had weighed on the stock. Cryan holds exploratory talks about a takeover of Commerzbank, but the companies decide against pursuing formal negotiations at that time to focus on their separate restructurings.2015It’s the last year under Anshu Jain, the former investment bank head who’s been co-CEO since 2012. Deutsche Bank is the least loved stock of all global investment banks, and a record fine to settle a probe into manipulation of benchmark interest rates isn’t helping. Jain concludes a six-month strategy review with a plan to sell the Postbank consumer operations and even considers exiting consumer banking altogether, though that idea is quickly dropped. Investors criticize the announcement, which also includes a proposal to shrink the investment bank, for its lack of detail and lowered profitability target.Less than two months later, Jain is replaced by Cryan. The new CEO quickly unveils his own turnaround plan, announcing a net 9,000 job cuts. Cryan says his vision is “all about execution” of the five-year strategy of his predecessor. "Deutsche Bank does not have a strategy problem,” he says at the time. Chairman Achleitner claims it’s one of the most “fundamental” reorganizations in the company’s history. Shareholders once again are puzzled by the lack of details on how the bank wants to return to growth.2014Jain raises 8.5 billion euros to end concerns about capital, the second time he’s tapping investors. He pulls out of trading commodities and credit-default swaps on individual companies. But while competitors are making deeper cuts into capital-intensive debt trading, Jain -- who has called Deutsche Bank the only “significant European global firm left standing” -- doubles down on the business. He announces another expansion for the bank’s U.S. operations, which would rack up 3.8 billion euros in losses over the next four years.Jain’s past as a rainmaker for the investment bank, meanwhile, catches up with him as more investigations and misconduct cases surface at the company. Industrywide probes into the alleged manipulation of interest rates and currencies inflate the bank’s legal bill, which will eventually reach $18 billion over the decade following the financial crisis. The alleged improprieties strain the balance sheet, share price and relations with regulators.2013Jain, who had indicated he didn’t want to raise capital, taps investors for 5 billion euros as regulatory requirements increase. The move briefly puts to rest concerns about Deutsche Bank’s capital strength, but soon legal bills start to mount as investigations that started with the U.S. probe into the sale of mortgage securities spread to benchmark interest rates related to Libor, violations of U.S. embargoes, and rigging of foreign exchange markets.To help meet regulatory requirements, the bank plans to shrink its balance sheet by 250 billion euros. It also starts to move jobs from expensive locations such as New York, London, Singapore and Hong Kong to cheaper ones, while sticking to its larger investment banking ambitions. But the measures prove too little too late.2012It’s the end of an era as Josef Ackermann hands over the reins. Jain becomes co-CEO together with Juergen Fitschen, and Achleitner takes over as chairman. Within weeks, the new management team realizes it has to trim the securities unit as Europe’s sovereign crisis rages on and tougher capital requirements loom. Jain and Fitschen announce the first deep round of cuts at the investment bank, with 1,500 jobs going at the unit and another 400 elsewhere.By the time they present the results of their strategy review in September, it’s clear more cuts will be needed. The bank sets up a “non-core” unit to accelerate the disposal of risky assets, and it reviews compensation to achieve “behavioral change” after becoming a target in the scandal over manipulations of benchmark interest rates. But the new CEOs still believe they can take market share in investment banking as rivals scale back. Jain predicts new regulations will trigger a wave of consolidation that “only a few strong, large universal banks” will survive, including Deutsche Bank.2011Ackermann, a critic of proposals to limit banks’ size, turns Deutsche Bank once again into Europe’s largest lender by assets, with a balance sheet that’s about 40% larger than in 2006. But it’s also one of the continent’s most leveraged and least capitalized. That’s making earnings more volatile and dependent on market swings, at a time when Europe’s sovereign debt crisis rattles investors.By October, Deutsche Bank has to scrap its profit forecast and announces 500 job cuts, the first in a long series of firings to right-size a bank that’s become too stretched amid a changing regulatory environment and new market challenges. As of yet, though, there’s no talk of scaling back the lender’s global ambitions. “We have built an excellent platform to continue on the successful path of recent years,” Ackermann says in early 2012, at his last annual press conference as CEO.2010Deutsche Bank agrees to buy Postbank, in which it already holds a minority stake. It’s part of a strategy by Ackermann to diversify, but it will be years of flip-flopping before the business is actually integrated. To finance the deal, Deutsche Bank announces its biggest share sale ever, raising about 10.2 billion euros. Some of that money is already earmarked to help meet new regulatory requirements.Revenue from trading securities, meanwhile, rises to an all-time high as Ackermann continues his drive to build up the investment bank. But calls for stricter regulation are gaining momentum, with the U.S. going aggressively after banks for selling securities that contributed to the financial crisis. New capital rules threaten to hurt Deutsche Bank more than rivals because it depends more on fixed-income trading.2009Ackermann has led Deutsche Bank relatively unscathed through the financial crisis. Now he wants to “profit from the opportunities of a new era.” He plans to increase the profitability of the investment bank, bring down costs as a share of revenue, extend market leadership at home and grow in Asia. He targets a pretax return on equity of 25%, an ambitious goal that German politicians condemn, saying it encourages employees to take too much risk.The CEO, who rejected state aid during the crisis, brushes off the criticism because he sees an opportunity to grab market share from weakened rivals. He sets another ambitious target, for pretax profit of 10 billion euros by 2011. But new rules will soon make capital intensive investment banking more expensive, and some analysts already predict that the bank may need to raise billions. Deutsche Bank says it doesn’t plan a capital increase except perhaps for further acquisitions.To contact the reporters on this story: Steven Arons in Frankfurt at sarons@bloomberg.net;Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.netTo contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Christian Baumgaertel, Ross LarsenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times7 days ago

    The linguistic slip-up that cost UBS some of its top Chinese investment banking clients

    FT premium subscribers can click here to receive Due Diligence every day by email. One scoop to start: several of Renault and Nissan’s joint business functions have been quietly unwound, as the carmakers’ alliance crumbles in the absence of Carlos Ghosn, according to multiple current and former employees. Just about everyone has hurt China’s feelings at some point or another: Nike, Starbucks, Apple and Dolce & Gabbana are all offenders.

  • Deutsche Bank considers replacing CFO: report
    Reuters8 days ago

    Deutsche Bank considers replacing CFO: report

    Deutsche Bank Chief Executive Christian Sewing is planning a major overhaul of top management, including replacing the finance chief, Bloomberg news agency reported on Tuesday. Citing an unnamed person close to the matter, Bloomberg said Sewing could remove James von Moltke as CFO. Separately, Germany business monthly Manager Magazin reported that Sewing was also discussing the possibility of replacing Garth Ritchie as head of investment banking to make the planned restructuring of the division a top priority.

  • Deutsche Bank faces investigation for potential money-laundering lapses: New York Times
    Yahoo Finance Video7 days ago

    Deutsche Bank faces investigation for potential money-laundering lapses: New York Times

    The New York Times reports that Deutsche Bank, still tangled in the financial dealings of the Trump family empire, is being investigated by U.S. authorities for potential money-laundering lapses regarding transactions linked to President Donald Trump, and son-in-law and advisor, Jared Kushner. Yahoo Finance's Jennifer Rogers, Myles Udland, and Dan Roberts discuss.