7.32 +0.01 (0.14%)
After hours: 4:29PM EST
|Bid||7.31 x 28000|
|Ask||7.31 x 47300|
|Day's Range||7.25 - 7.33|
|52 Week Range||6.44 - 9.90|
|Beta (3Y Monthly)||1.61|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||5.56|
(Bloomberg) -- Goldman Sachs Group Inc. agreed to pay $20 million to settle an investor lawsuit accusing traders at the bank, along with 15 other financial institutions, of rigging prices for bonds issued by Fannie Mae and Freddie Mac.As part of the settlement, disclosed Friday in a court filing, Goldman Sachs will cooperate with investors in their case against the other banks. The firm also agreed to make changes to its antitrust-compliance policies related to bond trading. A federal judge in Manhattan must approve the settlement before it can take effect.Investors sued after Bloomberg reported in 2018 that the U.S. Department of Justice was investigating some of the world’s largest banks for conspiring to rig trading in unsecured government bonds.Goldman Sachs has turned over 71,000 pages of potential evidence, including four transcripts of chat-room conversations among its traders and some from Deutsche Bank AG, BNP Paribas SA, Morgan Stanley and Merrill Lynch & Co., according to court papers filed Friday. The bank agreed to provide additional help, including deposition and court testimony, documents and data related to the bond market.Goldman Sachs isn’t the first to resolve the civil claims. In September, Deutsche Bank agreed to settle for $15 million. First Tennessee Bank and FTN Financial Securities Corp. agreed to a $14.5 million settlement later in September.Among the firms remaining as defendants in the case are Credit Suisse AG, Barclays PLC and Citigroup Inc.The case is In re GSE Bonds Antitrust Litigation, 19-01704, U.S. District Court, Southern District of New York (Manhattan).To contact the reporter on this story: Bob Van Voris in federal court in Manhattan at email@example.comTo contact the editors responsible for this story: David Glovin at firstname.lastname@example.org, Steve StrothFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Credit Suisse Group AG expects to cut bonuses at its investment banking & capital markets division and reallocate capital to higher growth areas after a slowdown in deal-making, according to people with knowledge of the matter.The reductions are likely to happen even if fourth-quarter revenues rebound, the people said, asking not to be identified as the matter is private. Several quarters of lackluster M&A activity, shelved IPOs and weaker leveraged finance -- one of the Swiss bank’s traditional strengths -- may cause the unit to post its lowest result in years.Chief Executive Officer Tidjane Thiam recently called the division’s third-quarter performance “unsatisfactory.” The bank lost out this year as a string of deals collapsed or didn’t get off the ground, including the planned initial public offering of Swiss Re AG’s U.K.-based Reassure unit and Chevron Corp.’s abandoned bid for Anadarko Petroleum Corp. Still, Credit Suisse retains a top 10 spot for M&A and is a global coordinator on Saudi Aramco’s IPO.Bonuses across Wall Street are poised to drop in 2019, according to a report Tuesday by compensation consultant Johnson Associates Inc. Those working at hedge funds and in private equity and investment banking advisory are likely to do better, with their bonuses potentially climbing 5%, according to the report.Compensation DropsCredit Suisse paid out 3.2 billion francs ($3.2 billion) in bonuses last year in total. Compensation and benefits for the first nine months were $75 million lower at the division compared to a year ago, according to the bank’s most recent quarterly report.The stock traded 1.3% higher at 12.88 francs as of 4:34 p.m. in Zurich, after earlier gaining as much as 1.7%.Credit Suisse said it is implementing a number of M&A plans to boost revenues over the next years, while Thiam also said last month that the bank is building out teams in tech and healthcare as these are the fastest-growing sectors with bigger fee pools. Still, the bank expects to shift capital from the IBCM unit to areas including wealth management, according to the people.The head of the IBCM unit, Jim Amine, stepped down earlier this month, taking the role as head of private credit opportunities based in New York. The bank appointed David Miller, a 22-year Credit Suisse veteran, to succeed Amine and join the executive board.Top 10 RankingAmine had led investment banking and capital markets for more than a decade, a period during which Credit Suisse kept its top 10 position in U.S. M&A league tables, while rivals UBS Group AG and Deutsche Bank AG dropped.He oversaw healthy profits in each of the last three years as stock markets and dealmaking boomed and risk weighted assets - an indicator of the funds deployed for transactions - grew by more than a third, peaking at the end of June. But in the three months through October these assets declined slightly, according to the bank’s quarterly report. The international wealth management unit used about $1 billion more.Miller was most recently global head of credit and part of the leadership team at global markets, the bank’s main trading unit. Eric Varvel, who is based in New York and heads Credit Suisse’s asset management business, was appointed chairman of the investment banking and capital markets unit.Slumping revenue at the division has become a growing issue for Thiam in recent quarters, while global markets trading -- a long-term straggler -- has made surprise profit gains.(Adds detail on risk weighted assets in 10th paragraph.)\--With assistance from Sonali Basak.To contact the reporter on this story: Patrick Winters in Zurich at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Marion DakersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Chile took a major step toward solving the social crisis that has convulsed the nation for the past month when lawmakers from almost all the parties agreed early on Friday to a mechanism to rewrite the constitution.There was a palpable air of relief when a visibly tired group of party leaders announced the agreement at about 2:30 a.m. following yet another day of disturbances and fires across the country.Chile has been torn apart by protests since Oct. 18 in the biggest social unrest in a generation. Protesters demanded a new constitution, arguing the current one enshrines an economic system that failed to guarantee basic rights including decent healthcare, education and pensions. The constitution was drawn up during the dictatorship of August Pinochet and protected a free market model that even allowed the privatization of water, a hot topic during the current drought.This “signals a peaceful and democratic exit to the crisis and the building of a true social contract,” Senate President Jaime Quintana said at the press conference. “This is a victory for the whole country -- we offer for the first time a constitution that’s 100% democratic.”The peso rallied 1.9% to 787.40 against the dollar as of 10:11 a.m. local time, paring a slump of more than 7% in the first four days of the week. The benchmark IPSA index leaped 6.7%.Swap rates plunged as the peso rallied. Two-year swaps fell 22 basis points, the most since June, and the 10-year dropped 28 basis points. The curve, which had yesterday moved to rule out rate cuts amid the rout in the peso, is now once again looking at a possible easing.The MechanismUnder Friday’s accord, Chile will hold a referendum in April to decide which body draws up the constitution. One option will be a newly elected Constituent Convention, the other a mix between the Congress and a Convention.Members will be chosen in October and will have nine months to write the charter, with the possibility of a three-month extension. The final document will need to be voted 60 days later in a plebiscite in which voting will be compulsory.The accord represents a concession by the center-right government. While they had agreed a new constitution was necessary, they wanted the Congress to play a preponderant role in drawing it up to avoid radical changes to the charter.Still, the accord says any agreement must be approved by two-thirds of the Convention, making broad agreements essential.One sour point to the proceedings was the absence in the talks of a minority of lawmakers, including the Communist Party, which holds 9 out of 155 seats in the Chamber of Deputies. That may make it harder to sell the accord to some of the people who have taken to the streets in their hundreds of thousands in the past month.End of Story?“This is a positive development, but it is not an unequivocal sign of a ‘return to normalcy’,” said Deutsche Bank analyst Sebastian Brown in a research note. “Chile is about to embark on a process of political reform that will open up its institutional framework to fundamental changes so uncertainty will remain high.”Plaza Italia, scene of some of the worst violence over the past four weeks, was draped in an enormous white sheet on Friday morning with the word “Peace” in Spanish hanging from the central statue.Chile President Sebastian Pinera, who has faced increasing demands by protesters to step down, hadn’t made any public comments as of Friday morning.Here is a list of comments on the new accord from leading politicians:Interior Minister Gonzalo Blumel:“We have had difficult days. We have all listened and we have all learned”Renovacion Nacional President Mario Desbordes“We ask the people that have legitimate demands and that have demonstrated peacefully in the streets to remain vigilant that we fulfill this pact, and that we advance in profound social reforms in parallel to the constitution”Frente Amplio lawmaker Gabriel Boric“We are here thanks to many Chileans that have risked their lives to make Chile a fairer country. Political forces have reached agreements that seemed impossible just a few days ago”Partido Por la Democracia President Heraldo Munoz“Now is the time to respond to citizens and do everything possible to build a better, fairer Chile. This fundamental charter needs to represent all of us”Unión Democrata Independiente President Jacqueline Van Rysselberghe“We sincerely hope this agreement defeats the violence that has originated in our country over the past few weeks”(Updates with lawmakers comments)\--With assistance from Javiera Baeza and Maria Jose Campano.To contact the reporter on this story: Laura Millan Lombrana in Santiago at email@example.comTo contact the editors responsible for this story: Julia Leite at firstname.lastname@example.org, Philip Sanders, James AttwoodFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A Labour government would nationalise BT’s Openreach network and provide free full-fibre broadband to every home and business in the UK, shadow chancellor John McDonnell has announced. The party’s manifesto, which will be signed off on Saturday, will now include a promise to take control of Openreach as part of a broader £20bn attempt to give the UK free full-fibre broadband by 2030. Mr Corbyn will announce on Friday that a Labour government would pay an undisclosed sum to take control of the network and insert it into a new public entity called British Broadband.
Mitsubishi UFJ (MUFG) reports disappointing earnings for first-half fiscal 2019 (Sep 30, 2019), mainly negatively impacted by lower net gains on equity securities and higher expenses.
U.S. private equity meets German-style corporate governance, and frictions occur. There should be little surprise there, in a country whose staid business culture never seemed to provide a fertile ground for the creativity of U.S. financial capitalism. According to the Financial Times, distressed assets fund Cerberus Capital Management is pushing for the ousting of the chairman of Deutsche Bank, Germany’s largest bank, which has indeed seemed under serious stress for the best part of the last decade.
In the aftermath of a trading fiasco that cost JPMorgan Chase some $6bn and opened a chink in the armour of Wall Street’s favourite chief executive Jamie Dimon, one hedge fund was having a whale of a time. BlueMountain Capital Management had harpooned the “London Whale” in 2012 and then been brought in to clean up the mess, pocketing $300m in one trade and cementing the status of its co-founder Andrew Feldstein (pictured above) as a credit whizz. As it happens, that would turn out to be the peak of BlueMountain’s success.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Deutsche Bank AG and other ratings that are associated with the same analytical unit. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.
American private equity firm Cerberus owns a 3% stake in Germany's Deutsche Bank AG (NYSE: DB) and is pushing for the ouster of Chairman Paul Achleitner, CNBC reported Tuesday, citing two sources. Achleitner was named chairman of Deutsche Bank back in 2012; since then, the stock has lost more than 70%. Most recently, the German bank failed to close a merger with Commerzbank, and this merely added to Cerberus' frustration, CNBC said.
Deutsche Bank's DWS asset management subsidiary is doing away with most titles as of next year, according to an internal memo on Tuesday. The abolition of positions like managing directors and vice presidents "will build a collaborative work environment with flat hierarchies based on functional roles, skills and capabilities as well as a clear performance culture", said the memo, seen by Reuters. DWS will still have a chief executive and chief financial officer.
(Bloomberg) -- Asset manager DWS Group GmbH & Co. has pulled the rungs off the corporate ladder.The firm majority-owned by Deutsche Bank AG plans to scrap titles such as associate, vice president and managing director by the middle of next year, according to an internal memo seen by Bloomberg.“We will build a collaborative work environment with flat hierarchies based on functional roles, skills and capabilities,” the internal memo said. “Each role will have a clearly defined description covering responsibilities and specific expectations and priorities.”A spokesman declined to comment on the memo.Deutsche Bank spun off DWS last year, though still owns nearly 80% of its shares. DWS has been the subject of repeated speculation about a possible merger with firms including the asset management unit of UBS Group AG.While Deutsche Bank sees “some form of consolidation” as necessary to develop DWS into a top 10 global asset manager, it has no plans to give up its majority stake, Chief Financial Officer James von Moltke said in July.While the corporate titles are disappearing, there will still be job expansions or significant role changes for individuals, according to the memo. Roles will take into account “the expertise needed, business impact, team management and expected relationships with other parts of the business. The compensation for each role will be aligned accordingly.”DWS Chief Executive Officer Asoka Woehrmann will retain his job title.To contact the reporter on this story: Suzy Waite in London at email@example.comTo contact the editors responsible for this story: Shelley Robinson at firstname.lastname@example.org, Chris BourkeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
FT subscribers can click here to receive FirstFT every day by email. Hong Kong police have warned that the city is “on the brink of total collapse”, after a second consecutive day of transport chaos and ...
Increased taxes on the rich, in an attempt to narrow the divide, is a critical part of the campaigns.
Cerberus has lost faith in Deutsche Bank’s chairman Paul Achleitner and is pushing for him to be replaced, according to three people familiar with the worsening relationship between the US private equity firm and Germany’s biggest bank. The desire for regime change has hardened since Deutsche abandoned merger talks with Commerzbank in April, these people said, scuppering the plans of Cerberus, which is Deutsche’s third-largest shareholder with a 3 per cent stake and the second-biggest shareholder in Commerzbank. Mr Achleitner endorsed ending the talks.
Deutsche Bank chairman Paul Achleitner has evidently hit a bum note. Cerberus, the US private equity group named after the hell hound, is calling for him to be replaced. Since May 2012, Deutsche Bank has had four chief executives and one chairman.
(Bloomberg) -- Deutsche Bank AG told U.K. regulators that it’s facing persistent issues in processing high-value payments in the country, a further sign of the IT problems plaguing the lender.The German lender met with Bank of England officials two weeks ago to explain disruptions of payments going through the BoE’s high-value payments system CHAPS on several days in October, according to a person familiar with the matter. The bank has also discussed the issue with Megan Butler, head of supervision at the Financial Conduct Authority, according to the Financial Times, which first reported the news.As a result of Deutsche Bank’s problems, about 21,000 payments for online retailer Amazon.com Inc. were delayed in recent months, the person said, asking not to be identified discussing the private information.Deutsche Bank has long struggled to replace an aging IT infrastructure. Chief Executive Officer Christian Sewing last year appointed a new chief operating officer, Frank Kuhnke, to lead the drive and recently hired Bernd Leukert, formerly a senior executive at German software company SAP SE, as head of technology and innovation.Payments services is a core offering of Deutsche Bank’s transaction bank, which Sewing recently took out of the investment bank and turned into a standalone division now known as corporate bank. He has called the division the “DNA” of the bank and made it a centerpiece of his turnaround plan unveiled in July.“We continue to invest substantially in our IT and platform capabilities,” a Deutsche Bank spokesman said in an emailed statement. “We put mitigating steps in place to ensure that similar issues cannot re-occur.”CHAPS has 34 direct participants and processed 4.3 millions payments worth 7.5 trillion pounds ($9.6 trillion) last month, according to its website.To contact the reporter on this story: Steven Arons in Frankfurt at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Christian BaumgaertelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- On Friday, judges in Milan convicted executives from the world’s oldest bank, Banca Monte dei Paschi di Siena SpA, for falsifying its accounts in collusion with Deutsche Bank AG and Nomura Holdings Inc. Some 11 years after the misdeeds, it’s hard to have complete faith in the ability of regulators to prevent similar bad behavior.That executives have been held accountable for one of Europe’s biggest banking scandals will be some comfort to savers and taxpayers. Deutsche and Nomura face financial penalties of $175 million (Paschi has already settled). Michele Faissola, Sadeq Sayeed and Giuseppe Mussari — formerly of Deutsche, Nomura and Paschi — were among 13 executives sentenced to jail, the most senior bankers convicted of crisis-era chicanery. Nomura is considering an appeal, while Deutsche will review the court’s ruling.Regulators don’t have much to take credit for here in reining in the excesses of these lenders. After hiding hundreds of millions of dollars in losses in 2008 and 2009, Paschi went on to build a mountain of bad loans that led to multiple taxpayer rescues. Deutsche, meanwhile, has only just embarked on a serious plan to restore profitability after myriad fines for dubious practices.The complex Deutsche derivatives trade at the center of the Milan trial was certainly ingenious. Dubbed Santorini, it made a loss disappear on a previous deal that would have blown a big hole in Paschi’s 2008 results. To do this, Deutsche made one bet on interest rates with Paschi that it would almost certainly lose and another wager that it would win. While Deutsche paid out immediately on the bet that Paschi won, the German bank let the Italian bank pay out on the wager that it lost over several years. That allowed Paschi to window-dress its accounts and hide the previous loss.The outside world would be none the wiser for years, until I came across documents that helped recreate the concoction. Within days of my article being published in January 2013, a similar deal emerged between Paschi and Nomura; Paschi said it would restate its accounts. The derivative dressed up as a loan was so successful for Deutsche it repeated the trade with clients around the world. The German bank also ended up correcting its figures.Given the widespread nature of the gimmickry, it’s reasonable to ask where the regulators were in all this. The simple answer: asleep at the wheel. For years (and well before my reporting) financial supervisors from New York to Rome were aware of how far these banks were pushing the envelope.As early as 2010, Italy’s central bank, then headed by former European Central Bank president Mario Draghi, had discovered that Paschi had been masking losses. The Bank of Italy said in a 2010 report that it didn’t have “powers as regards accounting” and that the matter needed further study.There was no great rush. The same Paschi managers remained in place through 2012. In the meantime, the bank’s bad loans were piling up as local political interference and reckless lending led it to overlook credit risk. Bailout followed bailout as losses mounted.As recently as 2016, Paschi was probably insolvent and its financial controls were still deemed perilously weak. That didn’t stop the ECB in 2017 nodding through the lender’s third helping of state aid in less than a decade. Over and over, supervisors failed to pick up on practices detrimental to Paschi’s longer-term viability.Deutsche’s rehabilitation has been torturous too. It wasn’t until 2015, well after the bank had been embroiled in multiple scandals — from rigging benchmarks to laundering dirty Russian money — that regulators sought to tame its risk-taking ethos. Under former chief executive officers Anshu Jain and his predecessor Josef Ackermann, Deutsche Bank had become a factory of risky and complex trades from its London hub as it sought to compete head on with Wall Street. Only now, under chief executive officer Christian Sewing, is the German giant attempting a deep reboot of the business by shrinking its trading unit. Unfortunately the ambitious reorganization has coincided with an economic slump.Of course, there are many obstacles that regulators will point to that complicate their roles, not least the need to tread carefully to maintain financial stability — especially at a systemically critical lender such as Deutsche.But by failing to place sufficient pressure at the right time, regulators have allowed the banks they oversee to delay the inevitable: These companies need to find other ways to make money. European bank valuations are close to the level they were in the 1980s; confidence in the industry is fragile.There is some optimism that the shift of bank regulation from the national level to the European level, via the ECB, will strengthen supervision. The deepening of a euro zone banking union with a common deposit insurance scheme, championed last week by Germany’s finance minister Olaf Scholz, would further erode national meddling.Unfortunately the ECB’s early record as a watchdog has been mixed. Draghi’s successor Christine Lagarde has pledged to keep banks safe. She also needs to keep them honest.To contact the author of this story: Elisa Martinuzzi at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- European fund management companies spent 2018 watching their share prices steadily decline, battered by increased regulatory scrutiny, customers withdrawing money and the relentless squeezing of fees. They’ve rallied this year, but the industry’s biggest beast in the region is outpacing its peers by an astonishing margin.Investors in Amundi SA have enjoyed a total return of more than 60% in 2019, outpacing the Stoxx Europe 600 index by 35 percentage points. The stock has beaten the 32% gains at DWS Group GmbH and Standard Life Aberdeen Plc, the 39% return for Schroders Plc and Man Group Plc’s 19% rise.Amundi, 68 percent-owned by France’s Credit Agricole SA, recently announced record quarterly inflows of almost 43 billion euros ($48 billion) in the three months through September, breaking a streak of three consecutive quarters of client withdrawals. Its 1.6 trillion euros of assets under management — up from 952 billion euros when it listed on the stock market in November 2015 — make it Europe’s biggest money manager.The most impressive statistic, however, is the one element of Amundi’s financials over which it has most control: its costs.The company’s frugality has nudged its cost-to-income ratio lower in recent years; it fell to an industry-beating 51.1% at the end of the third quarter. By comparison, Deutsche Bank AG-controlled DWS aims to cut its ratio to 65% and doesn’t expect to achieve that until the end of 2021.What could knock Amundi off its perch? Well, DWS Chief Executive Officer Asoka Woehrmann told the Financial Times this month that he plans to challenge his rival’s dominance by finding a takeover or merger that would increase his firm’s 752 billion euros of assets. Earlier this year Switzerland’s UBS Group AG was reported to be considering strapping its fund management arm to DWS. Insurer Allianz SE was also said to be interested in the German investment firm. Any such deal would create a challenger with the scale to match Amundi.But the French fund giant’s CEO Yves Perrier is unlikely to just stand by if industry consolidation begins. Now that he’s finished absorbing Pioneer Investments, a fund management unit bought from Italy’s UniCredit SpA for 3.5 billion euros in 2017, the decks are clear. While these mega-mergers might not happen, Amundi is well placed if they do. With its shares trading at their highest in more than 18 months, Perrier has the currency to fund a deal.To contact the author of this story: Mark Gilbert at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Asoka Wöhrmann took on one of the investment industry’s most difficult roles last year when he was promoted chief executive of DWS, Germany’s largest asset manager. Nicolas Moreau, his predecessor, was brutally axed after two years in the role after DWS failed to meet ambitious performance targets agreed at the time of the company’s March 2018 initial public offering. The IPO followed a protracted period of instability that included several failed efforts by its parent, Deutsche Bank, to sell the €752bn asset management business, multiple reorganisations and the departure of numerous senior staff members.
Deutsche Bank has been forced to admit to regulators its role in the UK payment system still suffers serious problems, years after it was first placed in remediation, which has led to tens of thousands of transactions for clients such as Amazon being held up. Deutsche executives met Bank of England officials two weeks ago to explain the latest failings. The BoE demanded an explanation as to why the bank’s systems were disrupted on 10 per cent of business days in October, putting Deutsche among the least-reliable participants in CHAPS, the clearing house automated payment system, despite being in remediation over the matter for at least three years.
Deutsche Bank Aktiengesellschaft is giving notice that it is considering whether to exercise its option to redeem the following securities prior to their scheduled m