Time To Panic About Deutsche Bank & Credit Suisse! - Probably The Next Lehman

Author Topic: Time To Panic About Deutsche Bank & Credit Suisse! - Probably The Next Lehman  (Read 37294 times)

0 Members and 1 Guest are viewing this topic.

Offline marsgate

  • Member
  • *
  • Posts: 7
posted @ rumormillnews...


Deutsche Bank Foreclosures Tossed Out of Ohio Federal Court -"They Own Nothing!"

2007-11-12
Judge Christopher A. Boyko of the Eastern Ohio United States District Court, on October 31, 2007 dismissed 14 Deutsche Bank-filed foreclosures in a ruling based on lack of standing for not owning/holding the mortgage loan at the time the lawsuits were filed.
Judge Boyko issued an order requiring the Plaintiffs in a number of pending foreclosure cases to file a copy of the executed Assignment demonstrating Plaintiff (Deutsche Bank) was the holder and owner of the Note and Mortgage as of the date the Complaint was filed, or the court would enter a dismissal.
The Court's amended General Order No. 2006-16 requires Plaintiff (Deutsche Bank) to submit an affidavit along with the complaint, which identifies Plaintiff as the original mortgage holder, or as an assignee, trustee or successor-interest.
Apparently Deutsche bank submitted several affidavits that claim that Deutsche was in fact the owner of the mortgage note, but none of these affidavits mention assignment or trust or successor interest.
Thus, the Judge ruled that in every instance, these submissions create a "conflict" and they "do not satisfy" the burden of demonstrating at the time of filing the complaint, that Deutsche Bank was in fact the "legal" note holder.
While the decision is great for homeowners in distress (due to providing a new escape hatch out of foreclosure), it is a big blow to the cause of sorting out the high-finance side of the mortgage mess.
Jacksonville Area Legal Aid Attorney, April Charney, broke this news to us via email and made these comments in regards to the Ohio Federal Court ruling (emphasis ours):
This court order is what I have been saying in my cases. This is rampant fraud on every court in America or nonjudicial foreclosure fraud where the securitized trusts are filing foreclosures when they never own/hold the mortgage loan at the commencement of the foreclosure.
That means that the loans are clearly in default at the time of any eventual transfer of the ownership of the mortgage loans to the trusts. This means that the loans are being held by the originating lenders after the alleged "sale" to the trust despite what it says per the pooling and servicing agreements and despite what the securities laws require.
This also means that many securitized trusts don't really, legally own these bad loans.
In my cases, many of the trusts try to argue equitable assignment that predates the filing of the foreclosure, but a securitized trust cannot take an equitable assignment of a mortgage loan. It also means that the securitized trusts own nothing.
So with this decision, it appears confirmed that investors in the mortgage debacle may in fact own nothing---not even the bad loans they funded! It seems their right to the cash flow from the underlying properties does not extend to ownership of the properties themselves; thus clouding the recovery picture considerably.
Charney further remarked to us:
This opinion, once circulated and adopted by state and Federal courts across the country, will stop the progress of foreclosures, at first in judicial foreclosure states, across America, dead in their tracks.
We agree with additional remarks Charney made pointing out that this decision has major adverse implications for the prospects of an amicable financial workout for the various investor contingents in mortgage-backed securities (MBSes). Doubt is cast on where the full write-downs will eventually land, and this uncertainty can only be expected to further harm the market value of MBS and MBS-based synthetic securities, already in shambles purely due to rising underlying delinquencies. Investors in these securities might have assumed---wrongly, it turns out---that they actually owned some "real estate" in these deals.
To paraphrase Jim Cramer, "They own nothing!"
The syndication of this article onto this site does not represent a gaurantee by IamFacingForeclosure.com of the accuracy article's contents, or endorsement of the services provided by the author. This article is provided for informational purposes only. You should consult with one or more professionals, recommended by us or otherwise, and use your own judgment, before taking financial or legal action.

Offline Femacamper

  • Member
  • *****
  • Posts: 9,970
  • PUTIN HACKED MY MIND!
    • TRUNEWS
Iamfacingforeclosure.com
2007-11-12

by Moe Bedard and Aaron Krowne

Judge Christopher A. Boyko of the Eastern Ohio United States District Court, on October 31, 2007 dismissed 14 Deutsche Bank-filed foreclosures in a ruling based on lack of standing for not owning/holding the mortgage loan at the time the lawsuits were filed.

Judge Boyko issued an order requiring the Plaintiffs in a number of pending foreclosure cases to file a copy of the executed Assignment demonstrating Plaintiff (Deutsche Bank) was the holder and owner of the Note and Mortgage as of the date the Complaint was filed, or the court would enter a dismissal.

The Court's amended General Order No. 2006-16 requires Plaintiff (Deutsche Bank) to submit an affidavit along with the complaint, which identifies Plaintiff as the original mortgage holder, or as an assignee, trustee or successor-interest.

Apparently Deutsche bank submitted several affidavits that claim that Deutsche was in fact the owner of the mortgage note, but none of these affidavits mention assignment or trust or successor interest.

Thus, the Judge ruled that in every instance, these submissions create a "conflict" and they "do not satisfy" the burden of demonstrating at the time of filing the complaint, that Deutsche Bank was in fact the "legal" note holder.

While the decision is great for homeowners in distress (due to providing a new escape hatch out of foreclosure), it is a big blow to the cause of sorting out the high-finance side of the mortgage mess.

Jacksonville Area Legal Aid Attorney, April Charney, broke this news to us via email and made these comments in regards to the Ohio Federal Court ruling (emphasis ours):

    This court order is what I have been saying in my cases. This is rampant fraud on every court in America or nonjudicial foreclosure fraud where the securitized trusts are filing foreclosures when they never own/hold the mortgage loan at the commencement of the foreclosure.

    That means that the loans are clearly in default at the time of any eventual transfer of the ownership of the mortgage loans to the trusts. This means that the loans are being held by the originating lenders after the alleged "sale" to the trust despite what it says per the pooling and servicing agreements and despite what the securities laws require.

    This also means that many securitized trusts don't really, legally own these bad loans.

    In my cases, many of the trusts try to argue equitable assignment that predates the filing of the foreclosure, but a securitized trust cannot take an equitable assignment of a mortgage loan. It also means that the securitized trusts own nothing.

So with this decision, it appears confirmed that investors in the mortgage debacle may in fact own nothing---not even the bad loans they funded! It seems their right to the cash flow from the underlying properties does not extend to ownership of the properties themselves; thus clouding the recovery picture considerably.

Charney further remarked to us:

    This opinion, once circulated and adopted by state and Federal courts across the country, will stop the progress of foreclosures, at first in judicial foreclosure states, across America, dead in their tracks.

We agree with additional remarks Charney made pointing out that this decision has major adverse implications for the prospects of an amicable financial workout for the various investor contingents in mortgage-backed securities (MBSes). Doubt is cast on where the full write-downs will eventually land, and this uncertainty can only be expected to further harm the market value of MBS and MBS-based synthetic securities, already in shambles purely due to rising underlying delinquencies. Investors in these securities might have assumed---wrongly, it turns out---that they actually owned some "real estate" in these deals.

To paraphrase Jim Cramer, "They own nothing!"

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank Posts Record Quarterly Loss on very bad bets!
« Reply #2 on: February 05, 2009, 09:28:53 AM »
Deutsche Bank Posts Record Quarterly Loss on Trading (Update2)
05 February 2009,
By Aaron Kirchfeld and Jann Bettinga
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0HwXoYnQhcc&refer=home


Feb. 5 (Bloomberg) -- Deutsche Bank AG, Germany’s biggest bank, reported a record loss in the fourth quarter after wrong- way trading bets led to a 5.8 billion-euro ($7.4 billion) loss at the investment-banking division.

The bank fell as much as 9.6 percent in Frankfurt trading after Chief Executive Officer Josef Ackermann said the global economy poses “significant challenges” to the industry.

“Investors were hoping for a positive outlook, but it was rather bleak, and the bank remains pessimistic about the market environment,” said Olaf Kayser, an analyst at Landesbank Baden- Wuerttemberg, who has a “hold” rating on the shares.

The investment bank, run by Anshu Jain and Michael Cohrs, posted record trading losses after a stock-market rout and the worst performance of investment-grade bonds in at least 35 years. The company had a net loss of 4.8 billion euros for the fourth quarter and 3.8 billion euros for 2008, its first annual loss in more than 50 years.

The shares were down 86 cents, or 4 percent, to 20.39 euros by 9:19 a.m. in Frankfurt, bringing the decline this year to 25 percent and cutting the bank’s market value to 12 billion euros. That compares to the 15 percent drop in the Bloomberg Europe Banks and Financial Services Index, which tracks 64 stocks.


$1 Trillion

The bank plans a dividend of 50 cents a share for 2008, reflecting “confidence in the bank’s future performance,” Ackermann said in the statement. The company paid 4.50 euros a share for 2007.

The German bank expects no more “material negative impact” from leveraged loans, commercial real estate and other credit investments, Ackermann said on Jan. 14. The CEO said last month he’s starting the year “with some confidence” after shedding toxic assets, cutting 1,200 jobs and shutting down credit proprietary trading.

Deutsche Bank skirted the worst of the U.S. subprime mortgage crash by shorting the bonds that contributed to more than $1 trillion of losses and writedowns at the world’s largest financial companies. Swiss rival UBS AG has had $48.6 billion of markdowns and Citigroup Inc. $85 billion, data compiled by Bloomberg show.

The world’s biggest financial companies have raised $970 billion euros in capital and announced some 269,000 job cuts since the outbreak of the U.S. subprime crisis in 2007, according to Bloomberg data.


Business Model ‘Weaknesses’

The September bankruptcy of New York-based Lehman Brothers Holdings Inc. triggered a much more “extreme new phase of the crisis,” Ackermann said last month.

The operating conditions “exposed some weaknesses in our business model,” he said today. “We are therefore repositioning our platform in some core businesses,” he said.

Ackermann and top executives are forgoing their 2008 bonuses. Deutsche Bank plans to cut bonuses at the securities unit by an average of 60 percent, a person with knowledge of the situation said this week. Personnel expenses in the quarter declined 65 percent to 607 million euros.

Earnings at the investment banking division were hardest hit by credit trading, equity derivatives and buying and selling stocks and bonds for the bank’s own account.

Net revenue from fixed-income sales and trading was negative 2.7 billion euros and negative 2.1 billion euros at equities sales and trading, leading the securities unit to its fourth- straight quarterly loss.


Proprietary Losses

The credit proprietary desk posted a loss of about 1 billion euros and equities proprietary trading had a deficit of 413 million euros. Boaz Weinstein, the New York-based co-head of global credit trading, is leaving the firm with about 15 of his colleagues in the second quarter to start a hedge fund, the bank said in January.

Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co. and Credit Suisse Group AG also have reported trading losses after the Lehman bankruptcy. Most have said they are shutting down some proprietary-trading operations.

Pretax profit from global transaction banking rose 31 percent to 291 million euros. Deutsche Bank’s consumer banking and asset and wealth management business had a pretax loss of 809 million euros, compared with a profit of 421 million euros a year earlier, following markdowns and cash injections into money market funds and rising loan-loss provisions.


Shrinking Assets

Ackermann has been investing in consumer banking to reduce dependence on investment banking, which generated about half of the group’s earnings in 2007. Deutsche Bank agreed to acquire 22.9 percent of Bonn-based Postbank for about 1.1 billion euros in stock in a first step and take more shares in the years ahead.

Ackermann aims to shrink Deutsche Bank’s assets and reduce the company’s dependence on borrowed money to avoid raising funds from investors or taking a handout from the government. The global markets unit reduced trading and other non-derivatives assets during the fourth quarter of about 300 billion euros, it said last month.

Its Tier 1 capital ratio, used to measure a bank’s ability to absorb loan losses, was 10.1 percent at the end of the quarter, in line with its target, the bank said.

Deutsche Bank has set a goal of cutting the bank’s leverage ratio -- total assets divided by shareholder equity, using U.S. accounting principles for derivatives -- to 30 times by the end of the first quarter from 38 times at the end of June.

Deutsche Bank has repeatedly said it doesn’t need to raise capital and has no plan to tap Germany’s 480 billion-euro bank- rescue fund. Commerzbank AG, Germany’s second-largest bank, is getting 18.2 billion euros from the state fund.


To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net; Jann Bettinga in Frankfurt at jbettinga@bloomberg.net

Last Updated: February 5, 2009 03:32 EST
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Re: Deutsche Bank Posts Record Quarterly Loss on very bad bets!
« Reply #3 on: February 05, 2009, 12:27:38 PM »
Deutsche Bank Confirms Fourth-Quarter Loss

FEBRUARY 5, 2009, 4:28 A.M. ET


FRANKFURT -- Germany's Deutsche Bank AG, the country's largest bank by market capitalization, confirmed Thursday that it swung to a loss in the fourth quarter because of exceptionally tough market conditions.

Deutsche Bank said its fourth-quarter net loss was €4.79 billion ($6.15 billion), down from a profit of €953 million in the year-earlier period.

The bank lost €3.84 billion in 2008, down from a profit of €6.47 billion in 2007. Deutsche Bank on Jan. 14 warned of the loss, citing heavy trading losses.

It was the first annual loss reported by Deutsche Bank since World War II.

The bank suffered ...

http://online.wsj.com/article/SB123381523649951399.html
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Catalina

  • Member
  • *****
  • Posts: 3,511
  • Government Censorship, Protecting You From Reality
DERIVATIVES FRAUD:Milan Police Seize UBS, JPMorgan, Deutsche Bank Funds
« Reply #4 on: April 29, 2009, 07:41:40 PM »
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOGICeXD8TPw

 April 28 (Bloomberg) -- Milan’s financial police seized 476 million euros ($620 million) of assets belonging to UBS AG, Deutsche Bank AG, JPMorgan Chase & Co. and Depfa Bank Plc amid a probe into alleged fraud linked to the sale of derivatives.

The police froze the banks’ stakes in Italian companies, real estate assets and accounts, the financial police said in a statement today. The assets seized yesterday also include those of an ex-municipality official and a consultant, the police said.

The City of Milan is suing the four banks after it lost money on derivatives it bought from the lenders in 2005. The securities swapped a fixed rate of interest on 1.7 billion euros of bonds for a variable rate that was losing the city 298 million euros as of June. Milan is among about 600 Italian municipalities that took out 1,000 derivatives contracts worth 35.5 billion euros in all, the Treasury said.

“Milan is an important case because it can be used as an example by others,” said Alfonso Scarano, who is heading a study into the trades by AIAF, a group representing Italian financial analysts. “This is a unique time for borrowers to shed light on their potential losses and renegotiate contracts” to take advantage of interest rates that have fallen to record lows. AIAF will next week testify before the Italian Senate’s inquiry into the cities’ use of derivatives contracts.

Officials at all four banks declined to comment. In January, JPMorgan filed a lawsuit against the city in London. The bank is seeking to have dispute heard in the U.K., according to two people familiar with the claims.

Cassa Depositi

A spokesman for Milan’s city council declined to comment. A report commissioned by the city last year into the derivatives trades didn’t identify the officials involved in the decision.

The banks reaped about 100 million euros in fees from the transactions, Milan’s financial police said today. Public officials, seeking to cut the cost of their debt and help fund their budgets, turned to the banks to refinance borrowings from the state-owned lender Cassa Depositi e Prestiti.

The 30-year bond carried annual interest of 4.019 percent. With the derivatives, the city swapped the fixed interest rate for a floating rate set at 12-month Euribor. Milan also agreed to repay the principal by annual payments instead of at maturity, according to the city’s report.

The banks and Milan later agreed on so-called interest-rate collars, under which the banks would pay the borrower if Euribor rose above a certain level, the so-called cap, while the borrower would pay the banks if Euribor fell below the so-called floor.

Credit-default Swaps

The banks misled municipal officials on the advantages of buying the derivatives, including the impact of the fees they charged on the contracts, the financial police have said. The banks made three times more money from the cap than Milan did from the floor, according to the city’s report.

Local governments often entered into derivative contracts without soliciting bids from competing buyers. In 2007, Milan also sold a credit-default swap, exposing itself to the risk that the Republic of Italy might default, the document shows.

The Milan case is among lawsuits filed by local governments from Germany to the U.S. amid allegations of mis-selling and fraud. Italy’s Senate is leading a review of the use of derivatives among local administrations.

Italian prosecutors can seize assets, subject to judicial approval, to prevent the worsening of the consequences of the crime or prevent further crimes being committed, according to Andrea Giannelli, a researcher at Milan’s Bocconi University.

‘Intimidating and unprecedented’

“Its use in this case is somewhat intimidating and unprecedented,” said Giannelli. “It’s a measure they may be using to accelerate a solution.”

Deutsche Bank, Germany’s largest bank, last year won dismissal of a lawsuit filed by Hagen, Germany, over losses on derivatives that the city purchased from the lender.

The U.S. Justice Department has been investigating for more than two years whether banks and brokers conspired to overcharge local governments on similar swap agreements.

Alabama challenged a so-called swaption deal last year as local governments across the U.S. faced rising bills after derivative trades with Wall Street banks backfired. The Alabama Public School and College Authority filed a lawsuit in October seeking to void a so-called swaption, or option on an interest- rate swap, that it sold to JPMorgan in 2002.
Spare no cost for truth's sake, neither depart from it for any gain. -Proverbs 23:23

Bestow not the gifts that God has given you to get worldly riches. -Proverbs 23:4

Offline ekimdrachir

  • Member
  • *****
  • Posts: 7,144
  • METATRON ON
    • Go Outside
This is a good thing isn't it?


Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank, JPMorgan, UBS Are Charged With Fraud
« Reply #6 on: March 18, 2010, 06:47:11 AM »
Deutsche Bank, JPMorgan, UBS Are Charged With Fraud (Update2)
17 March 2010
, by Elisa Martinuzzi and Sonia Sirletti (Bloomberg)
http://www.bloomberg.com/apps/news?pid=20601087&sid=avhfZfkuB3T0

March 17 (Bloomberg) -- Deutsche Bank AG, JPMorgan Chase & Co., UBS AG and Hypo Real Estate Holding AG’s Depfa Bank Plc unit were charged with fraud linked to the sale of derivatives to the City of Milan.

Judge Simone Luerti scheduled the trial of the four firms, 11 bankers and two former city officials for May 6, Prosecutor Alfredo Robledo said after a hearing in Milan today. The banks allegedly misled the city over swaps that adjusted interest payments on 1.7 billion euros ($2.3 billion) of bonds sold in 2005.

Prosecutors across Italy are investigating banks as local and national government agencies face potential losses of 2.5 billion euros on derivatives, lawyers say. The Milan probe may also affect cases as far away as the U.S., where securities firms have faced charges for price-fixing and bid-rigging in the sale of derivatives to municipalities, though not for fraud, according to former regulator Christopher “Kit” Taylor.

“This case could have repercussions over here if the trial showed deliberate intent,” said Taylor, a former executive director of the Municipal Securities Rulemaking Board, the national regulator of the municipal-bond market. “What happened in Europe was the continuation of a pattern in the U.S.”

JPMorgan is “vigorously” defending its position against the charges, the New York-based firm said in a statement. “The employees involved in the transactions acted with the highest degree of professionalism and entirely appropriately.”


‘No Criminal Plot’

UBS and “its exponents are confident that they will be able to demonstrate, in the course of the trial, that no criminal plot was conceived,” the Zurich-based bank said in a separate statement.

Deutsche Bank believes it will be cleared of the charges and that its employees acted with integrity, according to a statement from the Frankfurt-based bank. Hypo Real Estate Holding said in a statement that neither Depfa Bank nor its employees “violated any law or regulation.”

Giacomo Beretta, the City of Milan’s current finance director, said in a statement that the municipality is “pleased about the speed at which the case is moving ahead, and the judiciary’s attention to detail in the case.”

Prosecutor Robledo alleges the London units of the four banks misled Milan on the economic advantage of a financing package that included the swaps and that they earned 101 million euros in hidden fees.


U.K. Rules

He also claims the banks violated U.K. securities rules by failing to inform Milan in writing that for the swap deal the city was a counterparty to the lenders rather than a customer. Banks abiding by the rules of the Financial Services Authority are required to shield customers from conflicts of interest and provide them with clear and fair information that isn’t misleading.

Officials for the FSA in London didn’t have an immediate comment.

The prosecutor, who seized assets from the banks equal to their share of the alleged profit, is claiming JPMorgan charged about 45 million euros in commissions that were hidden from the municipality, while Deutsche Bank made about 25 million euros, Depfa Bank earned 21 million euros and UBS made 10 million euros, court documents show.

“The thesis brought forward by the prosecutor was particularly innovative and aggressive,” said Giampiero Biancolella, an attorney specializing in financial crime who isn’t involved in the case. “The indictments prove the allegations are legitimate, though the charges don’t yet prove the banks are guilty.”


Apulia, Liguria Cases

In another Italian investigation, magistrates in the region of Apulia are probing Bank of America Corp. and last month requested the company be stopped from doing business with the country’s municipalities for two years amid allegations it misled the municipality on derivatives linked to 870 million euros of bonds. A unit of Dexia SA is also under investigation in the same case.

Separately, Nomura Holdings Inc. bankers are under investigation for alleged fraud relating to derivatives contracts sold to the Italian region of Liguria in 2004, people familiar with the case said last month.

Derivatives are typically unregulated financial instruments linked to stocks, bonds, loans, currencies and commodities, or related to specific events such as changes in interest rates or the weather.


Bankers Charged

The individual bankers charged in the Milan case are: Deutsche Bank’s Tommaso Zibordi and Carlo Arosio; Depfa’s Marco Santarcangelo and William Francis Marrone; JPMorgan’s Antonia Creanza, Fulvio Molvetti, Simone Rondelli and Francesco Rossi Ferrini; and UBS’s Gaetano Bassolino, Matteo Stassano and Alessandro Foti.

Arosio, Bassolino, Stassano and Santarcangelo declined to comment. Zibordi, Rossi Ferrini, Rondelli, Creanza, Marrone and Foti didn’t immediately return calls seeking comment. Molvetti couldn’t be reached and his lawyer didn’t return calls.

Giorgio Porta, a former interim director general of Milan’s city government, and Mario Mauri, an external consultant, were also charged with fraud and collusion for their role in helping to oversee Milan’s debt restructuring and derivatives.

The judge will have to clear Mauri because there aren’t any material claims against him, his lawyer said. Porta’s lawyer didn’t immediately return calls.

The allegations have prompted Italian lawmakers to propose new rules restricting the use of derivatives among municipalities by boosting oversight and banning upfront payments. Italy’s Senate Finance Committee on March 11 unanimously approved a proposal on tighter rules that will be used by the finance ministry to shape regulation.


‘Paying the Bills’

“It’s time banks start paying the bills,” said senator Elio Lannutti, a member of the finance committee. The city was the injured party in this case, he said.

Through swaps, “banks found a way to sell something that is debt without making it look like debt,” former regulator Taylor said. He advised a law firm that sued banks on behalf of residents of Jefferson County, Alabama, which was on the brink of bankruptcy after swaps backfired.


To contact the reporter on this story: Elisa Martinuzzi  in Milan at emartinuzzi@bloomberg.netSonia Sirletti  in Milan at ssirletti@bloomberg.net

Deutsche Bank, JPMorgan, UBS Are Charged With Fraud 17 March 2010 (Bloomberg) http://tinyurl.com/yg2fmh2
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
London business figures embroiled in Kaupthing fraud investigation
6 June 2010
, by Simon Bowers (Guardian.UK)
http://www.guardian.co.uk/business/2010/jun/06/kaupthing-deutsch-bank-iceland

Serious Fraud Office team thought to be to be scrutinising Deutsche Bank's role in alleged suspect trades

A Serious Fraud Office investigation into Kaupthing, the failed Icelandic bank, is understood to be pursuing a number of allegations of market manipulation involving investment vehicles controlled by some of the bank's largest clients, including several high profile UK business leaders.

It is alleged that in the weeks and months before Iceland
's financial system went into meltdown, certain trades improperly used at least €500m (£413m) of Kaupthing funds in an effort to manipulate credit derivatives. Bank bosses hoped this would restore crumbling confidence in Kaupthing's solvency in the months before the bank collapsed in October 2008.

The SFO, which announced a wide-ranging probe into Kaupthing last December, is believed to be closely scrutinising the role of Deutsche Bank, which is said to have been advising Kaupthing throughout 2008 and allegedly played a role in facilitating suspect trades. Investigators want to establish whether or not Deutsche Bank or its employees may have acted improperly by pushing trades through.

A spokesperson for Deutsche Bank said: "We are co-operating with the authorities in seeking to establish the facts in this matter." The bank declined to comment on details of the allegations.

Also caught up in the investigation is Conservative party donor Tony Yerolemou, who is the London-based food manufacturing entrepreneur behind the Cypressa food brand. Others who have become embroiled in the saga include high street fashion entrepreneur Kevin Stanford and his former wife Karen Millen.

There is no suggestion of dishonesty on the part of Stanford, Millen or Yerolemou, all of whom had close ties to Kaupthing – the latter being a non-executive director at the bank. They are not thought to have known the trades might amount to market abuse on the part of Kaupthing.

Working closely with Icelandic counterparts and the Financial Services Authority, the SFO is focused on offshore investment vehicles, nominally controlled by at least five of the bank's largest clients, including the three British entrepreneurs. Investigators are looking at whether these vehicles were used by Kaupthing executives to manipulate the price of certain derivatives that offered insurance against Kaupthing bonds defaulting.

In the credit derivatives market the price for insuring these bonds against the possibility of the bank going bust had been climbing sharply for certain periods in 2008, sparking wider concern about Kaupthing's solvency. Bank executives were desperate to reverse rising insurance premiums as these were increasingly being highlighted as a warning light flashing over the bank, damaging investor and depositor confidence.

However, the bank could not act alone. Clearly Kaupthing could not offer to insure against its own insolvency because, in such an event, it would not have the funds to pay out on the insurance policy. Instead Icelandic bank bosses arranged for loans to be extended to investment vehicles controlled by trusted Kaupthing clients and these sums were used to write the insurance contracts, known as credit default swaps (CDSs).

Investigators are poring over communications between Deutsche Bank and senior figures at the Icelandic bank, including London-based former executive chairman Sigurdur Einarsson and former chief executive Hreidar Mar Sigurdsson.

Both Einarsson and Sigurdsson deny wrongdoing. The former Kaupthing chairman has insisted the CDS trades under investigation were Deutsche Bank's idea – a claim the German bank is understood to deny strongly.

A letter from Einarsson, containing his explanation of the CDS trading strategy, was leaked to the Icelandic media last year. In it he said: "On a proposal from Deutsche Bank it was decided to put to the test what would happen if the bank itself would start buying these credit default swaps. It was, however, not a simple issue, as the bank cannot buy credit default swaps on itself. Therefore [we] resorted to getting clients we trusted well and had long-standing relations with based on trust and loyalty to engage in these transactions on behalf of the bank … The transactions were made with the interests of the bank as a guiding light and fully in accordance with laws and regulations."

The effect was for investment vehicles – financed by Kaupthing loans, and at least nominally controlled by some of the bank's largest clients – to take on risk associated with the bank going bust. Kaupthing loans were being use to write insurance against Kaupthing bonds defaulting.

A 2,300-page Truth Commission report for the Icelandic parliament, published in April, said: "In the fall of 2008, Kaupthing ... loaned its key clients roughly €500m for the purpose of selling credit default swaps on Kaupthing itself. The clients themselves took no risks but they would have made substantial profits if the bank would have withstood ... difficulties."

It added: "By selling these CDSs the bank was in a way paying up its long-term debts. The buyer of these credit default swaps, on the other hand, was Deutsche Bank or its foreign clients. Yet again had an Icelandic bank bought a foreign bank out of Icelandic risk troubles, and the loans and the risk had been repatriated."

One source said it was unclear whether Deutsche Bank employees had been fully aware of the relationship between the investment vehicles that conducted the CDS trades, on the one hand, and Kaupthing, on the other.

Deutsche Bank has emerged as the largest single claimant against the assets of failed Kaupthing and is said to be owed almost 900bn Icelandic Krona (£4.8bn) through close to 50 different claims. The bulk of that sum is understood to relate to claims in Deutsche Bank's capacity as custodian bank on behalf of third parties.

Iceland's Truth Commission obtained details of emails sent by Deutsche Bank staff to Kaupthing which, according to its report, demonstrated that the German bank had been offering advice on how to influence the CDS price on Kaupthing bonds from early 2008. The Icelandic bank had become concerned because the price was indicating a relatively large and growing risk that Kaupthing could collapse – a risk assessment out of line with the more favourable scores from traditional credit rating agencies.

One memo in February 2008 from Deutsche Bank to Kaupthing was entitled: "Why the CDS curve is where it is and what can we do to take it back to normal levels". A second Deutsche Bank email in June allegedly discussed the idea of a trade in Kaupthing derivatives. The Truth Commission report states that this email argued such a trade could be an effective way to affect the market price for Kaupthing CDSs. The email allegedly suggested the timing would be critical if it was to get "most bang for the buck".

Kaupthing bosses have said they believed the price for insuring against the bank going bust was being manipulated by hedge funds trying to "short" the bank. They said false rumours were circulating about the bank.


Kevin Stanford

Best known for co-founding retailer fashion chain Karen Millen, which took the name of his then wife and business partner, pictured right, Stanford is one of the most prolific entrepreneurs in UK high street fashion, involved in investments including All Saints, Mulberry, Moss Bros, Debenhams, French Connection and Woolworths. His relationship with the now failed Icelandic bank started in 2000 and Kaupthing took a stake in Karen Millen the following year. The business later merged with Oasis, a rival chain that had been acquired by Icelandic investment group Baugur together with Kaupthing. This combination became known as Mosaic Fashions and went on to acquire several other chains. Despite being separated, Stanford and Millen continued to regularly operate as silent backers of each other's investments. Stanford eventually became the second largest borrower from Kaupthing's subsidiary in Luxembourg, receiving loans of €362m. He is also said to have been granted a €100m loan from Kaupthing in Reykjavik to fund the acquisition of shares in the bank. In the last two years Stanford's investments have suffered and he has been forced to make major concessions to Kaupthing's administrators.


Tony Yerolemou

Co-founder and former chief executive of Katsouris Fresh Foods, a family run business in west London making ready meals and dips for Tesco and other supermarkets, The group includes the Cypressa brand, which had been built up over decades. He is best known in the UK as a Conservative donor. In 2001 Katsouris was sold to the tiny Icelandic firm Bakkavor, specialising in exporting fish roe. The family received £70m in cash and £32m in Bakkavor shares. Cyprus-born Yerolemou took a seat on the board of the Icelandic firm. Debt financing for the deal — at the time the largest ever for an Icelandic firm — had been provided by Kaupthing and HBOS. In 2007 Yerolemou was appointed to the board of Kaupthing as a non-executive director. Some of his investments were under strain in 2008 and the recent report by Iceland's Truth Commission suggested some of his business interests, financed by Kaupthing, appeared to be in negative equity. The commission's report questioned whether he met a "fit and proper" test required for him to sit on the bank's board. By the autumn of 2008 Yerolemou was the fourth largest borrower from Kaupthing's Luxembourg subsidiary, receiving loans of €157m. Like many clients of the Icelandic bank, he owned shares in it, which were pledged as collateral against Kaupthing loans.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank CEO Says Stress Tests Could Be ‘Very Dangerous’
« Reply #8 on: June 10, 2010, 11:21:28 AM »
Deutsche Bank CEO Says Stress Tests Could Be ‘Very Dangerous’
10 June 2010
, by Aaron Kirchfeld and Simon Clark (Bloomberg)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aTbbwidLzqHQ

June 10 (Bloomberg) -- Deutsche Bank AG Chief Executive Officer Josef Ackermann  said publishing stress tests would be “very, very dangerous” if mechanisms to support European banks weren’t in place beforehand.

“If we want to disclose the results of stress testing, then we must have backstop facilities in place,” Ackermann, speaking as the chairman of the Institute of International Finance, said at a conference in Vienna today. “Otherwise the uncertainties and instability of the market will increase.”

The institute, which represents more than 375 financial companies, published a report on May 24 calling for a new “cross-border resolution regime” for failed lenders, which would force shareholders, creditors and banks to shoulder the cost of future banking crises.

European Union bank regulators are conducting confidential stress tests and will publish results this month after lenders absorbed more than $1 trillion of losses and writedowns in the global financial crisis. Ackermann said “in principle” he’s in favor of publishing stress tests for European banks, adding that he is “absolutely not” assuming some lenders would need help if the results were made public.


To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Moody's puts Commerzbank on review for downgrade
17 February 2011
, by Simon Kennedy (MarketWatch)
http://www.marketwatch.com/story/moodys-puts-commerzbank-on-review-for-downgrade-2011-02-17

Excerpt:

Moody's Investors Service said Thursday that it may downgrade the senior debt ratings of several Commerzbank AG group entities.

The credit rating agency said it's put the ratings of Commerzbank AG, Commerzbank Europe (Ireland), Eurohypo AG and Deutsche Schiffsbank on review for a possible downgrade.

In the case of Commerzbank AG, the group said it may cut its stand-alone rating to Baa2 from Baa1.

The review is expected to be completed in the short term and the "transition risk" is likely to be limited to no more than two notches, the rating agency added.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
US sues Deutsche Bank for $1bn over 'reckless' mortgages
« Reply #10 on: May 03, 2011, 02:54:40 PM »
US sues Deutsche Bank for $1bn over 'reckless' mortgages
3 May 2011
, by Richard Blackden (The Telegraph)
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8490743/US-sues-Deutsche-Bank-for-1bn-over-reckless-mortgages.html

Excerpt:

The US government is suing Deutsche Bank for more than $1bn (£605m), alleging that Germany's biggest bank lied repeatedly to secure valuable government-backed insurance for mortgages it sold.

American authorities allege that Deutsche "recklessly" picked mortgages that failed to meet the criteria for a government-sponsored insurance programme and handed over fraudulent data in the process.

The lawsuit, which was filed on Tuesday in a Manhattan court, accuses the bank of choosing mortgages for the Federal Housing Administration's programme "in blatant disregard of whether borrowers could make mortgage payments".

----

The claim is the latest effort by the US government to punish alleged wrongdoing in the housing market in the years leading up to the financial crisis.

In a statement, Deutsche said: "We just received the complaint and are reviewing it. We believe the claims against MortgageIT and Deutsche Bank are unreasonable and unfair."


The Pot Calling the Kettle black.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline heavyhebrew

  • Member
  • *****
  • Posts: 3,986
  • Laughter is the best medicine.
Re: US sues Deutsche Bank for $1bn over 'reckless' mortgages
« Reply #11 on: May 03, 2011, 03:03:36 PM »
And yet Goldman Sachs gets a pass? Why is that?
We work jobs we hate to pay for stuff we don't need to impress people we don't like. Am I the crazy one here?

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Re: US sues Deutsche Bank for $1bn over 'reckless' mortgages
« Reply #12 on: May 03, 2011, 04:49:57 PM »
Due To "Triple Damages" Under False Claims Act, Deutsche Bank Damages May Total More Than $1 Billion - Full Lawsuit Attached
3 May 2011
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/article/due-triple-damages-under-false-claims-act-deutsche-bank-damages-may-total-more-1-billion-ful

Excerpt:

And what investors are focused on: "In this suit,

the United States seeks treble damages and penalties under the False Claims act and compensatory and punitive damages under the common law theories of breach of fiduciary duty, gross negligence, negligence,

and indemnification for the insurance claims already paid by HUD for mortgages wrongfully endorsed by MortgageIT.

In addition, the United States seeks compensatory and punitive damages."

And what is also notable is that this fraud persisted well past the housing crunch, continuing well into 2009 according to the lawsuit.

Bottom line: hit could be bigger than $1 billion.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Kilika

  • Member
  • *****
  • Posts: 8,762
  • Thank you Jesus!
Re: US sues Deutsche Bank for $1bn over 'reckless' mortgages
« Reply #13 on: May 03, 2011, 05:03:34 PM »
1 billion eh? And Freddie and Fannie are holding about 5 trillion in bad debts? Gotta start somewhere I guess!
"For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows."
1 Timothy 6:10 (KJB)

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank Sued by U.S. Over Mortgage Practices (Bloomberg Vid)
« Reply #14 on: May 04, 2011, 05:35:58 AM »
Deutsche Bank Sued by U.S. Over Mortgage Practices (Bloomberg Vid) http://www.youtube.com/watch?v=Y_nVKJ0qfo0
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank knew mortgage co it bought lied: Justice Dept
« Reply #15 on: August 23, 2011, 03:35:43 PM »
Deutsche Bank knew mortgage co it bought lied: Justice Dept
23 August 2011
, New York (Reuters)
http://uk.reuters.com/article/2011/08/23/us-deutschebank-mortgage-lawsuit-idUKTRE77M0E620110823

Deutsche Bank AG knew in 2006 that a mortgage company it was preparing to buy lied to the U.S. government about its mortgages, yet went ahead with the purchase and should be held financially responsible, the Justice Department said on Monday.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Judge dismisses Deutsche Bank, BNP claims against BofA
« Reply #16 on: August 30, 2011, 10:03:53 PM »
Judge dismisses Deutsche Bank, BNP claims against BofA
30 August 2011
, New York (Reuters)
http://www.reuters.com/article/2011/08/31/us-bankofamerica-idUSTRE77U0BH20110831

A U.S. federal court judge has dismissed claims by Deutsche Bank AG and the mortgage unit of France's BNP Paribas SA that Bank of America breached its obligations on a total of more than $1.7 billion of mortgage-related transactions, according to court documents.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank abandons 2011 profit targets
« Reply #17 on: October 04, 2011, 10:01:41 AM »
Deutsche Bank abandons 2011 profit targets
4 October 2011
, Frankfurt (AFP)
http://www.google.com/hostednews/afp/article/ALeqM5hMmmYOUhkhOtk1JdulYPVpxIwNww

Deutsche Bank, Germany's largest bank, said Tuesday it will miss its profit target for the current year in face of the financial market turbulence.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank: Sector in structural crisis: report
« Reply #18 on: March 23, 2012, 06:24:08 PM »
Deutsche Bank: Sector in structural crisis: report
23 March 2012
, by Frankfurt Bureau - Frankfurt (MarketWatch)
http://www.marketwatch.com/story/deutsche-bank-sector-in-structural-crisis-report-2012-03-23

Europe's finance sector is in a structural crisis as institutes that took state aid face huge uncertainty which is affecting the rest of the sector, says Deutsche Bank AG's new board member Stephan Leithner, according to an interview with Boersen-Zeitung published Friday.

While the problem areas of equity capital and liquidity are now largely pacified, new problems are stirring, for instance for some of Germany's Landesbanken regarding regulators' divestment requirements, he says.

There are units of large banks which are up for sale without potential buyers in sight, Leithner tells the newspaper.

That poses major challenges for the institutions, as the uncertainty about the future is burdening operating business further, the future head of Deutsche Bank's European operations, excluding Germany, is cited as saying.

"Alternative solutions need to be brought into consideration," Leithner says, adding that the problem is regulators' divestment requirements don't have a clear end point.

Many institutions like commercial property financiers enjoy implicit state guarantees and were consequently refinanced for the next three years by the European Central Bank's recent tender, the report says.

Leithner, an Austrian and the co-head of Deutsche Bank's investment banking coverage and advisory operations, will also in future oversee the bank's legal risks and human resources on the executive board.

Newspaper website: http://www.boersen-zeitung.de
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Fed Sells CDOs From AIG Rescue to Barclays, Deutsche Bank
« Reply #19 on: April 26, 2012, 08:09:24 PM »
Fed Sells CDOs From AIG Rescue to Barclays, Deutsche Bank
26 April 2012
, by Caroline Salas Gage and Sarah Mulholland (Bloomberg)
http://www.bloomberg.com/news/2012-04-26/fed-sells-cdo-debt-from-aig-rescue-to-barclays-deutsche-bank.html

The Federal Reserve Bank of New York said it sold $7.5 billion of collateralized debt obligations linked to commercial mortgages to Barclays Plc and Deutsche Bank AG.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank to settle mortgage suit for $202 mln
« Reply #20 on: May 11, 2012, 12:00:35 AM »
Deutsche Bank to settle mortgage suit for $202 mln
10 May 2012
, by Sue Chang - San Francisco (MarketWatch)
http://www.marketwatch.com/story/deutsche-bank-to-settle-mortgage-suit-for-202-mln-2012-05-10

Deutsche Bank will pay $202.3 million to settle a civil fraud lawsuit with the U.S. government in connection with misconduct by its subsidiary Mortgageit in handling mortgages, the Department of Housing and Urban Development said in a statement on Thursday.

"Among other things, the suit accused the defendants of having submitted false certifications to HUD, including false certifications that Mortgageit was originating mortgages in compliance with HUD rules when in fact it was not," said the HUD.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank reportedly misvalued Derivatives
« Reply #21 on: December 06, 2012, 11:20:43 AM »
Deutsche Bank reportedly misvalued derivatives
5 December 2012
, by Sarah Turner - Sydney (MarketWatch)
http://www.marketwatch.com/story/deutsche-bank-reportedly-misvalued-derivatives-2012-12-05

Deutsche Bank AG misvalued large derivative structure positions during the financial crisis which helped it avoid government financial aid, the Financial Times reported Wednesday.

Three ex-employees of the lender alleged in complaints to U.S. watchdogs that the German bank failed to account for losses it faced when the market worsened, according to the report.

The employees also alleged that, if the bank had properly valued positions in that period, then the portfolio losses could have risen to as much as $12 billion, according to the report.

Deutsche Bank said that the allegations are more than two years old and "wholly unfounded," according to the report.


Deutsche Bank Accused of Hiding Securities Losses http://www.bloomberg.com/video/deutsche-bank-accused-of-hiding-securities-losses-crM3nUMPS7KIMa1x66Qq5g.html

Dec. 6 (Bloomberg) — Bloomberg’s chief financial correspondent Christine Harper reports that deutsche bank is denying allegations by a former employee that the bank engaged in a multibillion-dollar securities violation. She speaks on Bloomberg Television’s “Market Makers.”
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank Made Huge Profit On Libor Bets
« Reply #22 on: January 10, 2013, 10:52:45 AM »
Deutsche Bank made huge profit on Libor bet: WSJ
10 January 2013
, Frankfurt (MarketWatch)
http://www.marketwatch.com/story/deutsche-bank-made-huge-profit-on-libor-bet-wsj-2013-01-10

Deutsche Bank AG made a profit of at least 500 million euros ($654 million) on trades in 2008 tied to the London interbank offered rate, or Libor, and other global benchmark rates, The Wall Street Journal reported late Wednesday, citing internal bank documents.

Regulators have been probing allegations that more than a dozen banks, including Deutsche Bank, manipulated Libor and other rates.

The investigation has resulted in settlements totaling nearly $2 billion with Barclays PLC and UBS AG.

The Deutsche Bank documents were handed to investigators by a former bank employee, the Journal said.

The former employee told regulators some employees expressed concerns about the risks surrounding the bets,

but that bank officials dismissed the worries because the bank could influence the rates, the newspaper said.

A Deutsche Bank spokesman told the Journal that the allegations were "categorically false."


For more see FRAUD http://forum.prisonplanet.com/index.php?topic=239077.msg1395558#msg1395558
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
A Glimpse At Deutsche's Riskless €68 Million DV01 Libor "Bet"
« Reply #23 on: January 10, 2013, 10:59:56 AM »
A Glimpse At Deutsche's Riskless EUR68 Million DV01 Libor "Bet"
10 January 2013
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2013-01-10/glimpse-deutsches-riskless-eur68-million-dv01-libor-bet

At the height of the financial crisis in 2008, Deutsche Bank made some extraordinarily large bets.

As the WSJ reports, documents uncovered from the Libor rate manipulation investigation show huge outsized bets that would swing €68 million on a 1bps shift in the Libor rate that they have since been charged with manipulating.

Sure enough, with regards the risk (which was large enough to be brought to management's attention), officials "dismissed those concerns because the bank could influence the rates they were betting on."

The bets (which made the bank at least $654 million) were a series of steepening trades (as opposed to outright positions) which were implicitly highly leveraged to provide the most bang for their manipulated and un-capitalized buck

(and perhaps explains the fact that Deutsche had to hide a $12 billion loss during this period in order to avoid a government bailout) in what was a remarkably volatile time for these rates.



Given this scale of trade, it is evidently clear that risk control was entirely ignored (as these 'pairs' trades were not even included in the bank's Value-at-Risk calculations)

and the comfort with such a 'bet-it-all-on-double-0' strategy implies everyone was in on the Libor manipulation.

As part of its cooperation with investigators, Deutsche Bank still is checking all the trades for any suspicious signs.

Suspicious signs indeed... but another serious glimpse at the reality of the past (and today's - cough London Whale cough) hidden over-levered reality in banks.

Source: WSJ http://online.wsj.com/article/SB10001424127887324442304578231721272636626.html?mod=djemalertDEALS


For more see FRAUD http://forum.prisonplanet.com/index.php?topic=239077.msg1395558#msg1395558
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
S&P puts Deutsche Bank on negative rating watch
« Reply #24 on: March 27, 2013, 06:18:02 PM »
S&P puts Deutsche Bank on negative rating watch
27 March 2013
, (The Local)
http://www.thelocal.de/money/20130327-48789.html

International ratings agency Standard and Poor's put the biggest German bank's long-term credit rating on negative watch Wednesday after Deutsche Bank's 2102 earnings were hit by writedowns and legal costs.

S&P said in a statement it has placed Deutsche Bank's "A+" long-term rating on "CreditWatch with negative implications."

The move "follows Deutsche Bank's announcement that it has increased its provisions for litigation in 2012 by €600 million ($769 million) compared with the preliminary results it released in January this year," the statement said.

The bigger-than-expected provisions forced the bank to restate its year-end net profit for 2012, which now stood at 291 million euros compared with €4.326 billion in 2011.

"We view the group's 2012 results as weak overall," S&P said. "We believe ongoing economic, regulatory, and legal risks will continue to hurt the bank's performance."

Deutsche Bank's capitalisation was "still below peers' in our view, despite a significant improvement on the second half of 2012," the rating agency continued.

"The revised results lower the starting point for our projected risk-adjusted capital (RAC) ratio at year-end 2013.

This ratio is our measure of a bank's capital cushion against unexpected losses."

Deutsche Bank is currently being investigated over allegations that some of its employees may have been involved in rigging the Libor and Euribor interest rates.

And one of its co-chief executives, Jürgen Fitschen, is among a number of top managers suspected of involvement in a tax evasion scheme in the trading of carbon emissions certificates.

Deutsche Bank said its so-called Core Tier One capital ratio -- a measure of a bank's ability to withstand unforseen risks -- slipped to 7.8% in 2012 from 8.0% announced at the end of January.

A Deutsche Bank spokesman declined to comment on S&P's move, but insisted that the group was confident of attaining its target for a capital ratio of 8.5% at March 31.

Investors were not so sure and Deutsche Bank shares were the biggest losers on the Frankfurt stock exchange on Wednesday, shedding more than 3.0% in slightly softer market.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank Cut by JPMorgan on Concern Over Capital
« Reply #25 on: May 21, 2013, 09:47:08 AM »
Deutsche Bank Cut by JPMorgan on Concern Over Capital
21 May 2013
, by Nicholas Comfort (Bloomberg)
http://www.bloomberg.com/news/2013-05-21/deutsche-bank-cut-by-jpmorgan-on-concern-over-capital.html

Deutsche Bank AG (DBK), continental Europe’s biggest bank, was cut to neutral from overweight by JPMorgan Chase & Co., which said tighter regulation threatens capital levels.

The Basel Committee on Banking Supervision’s proposed revision to a securitization framework governing riskier assets would reduce Frankfurt-based Deutsche Bank’s common equity Tier 1 capital ratio under Basel III rules to as little as 8.6% in 2014 from 10.2%, JPMorgan analysts including Kian Abouhossein said in a report to clients from London today.

Reversing an increase to Deutsche Bank’s rating three weeks ago, JPMorgan said a €3 billion ($3.9 billion) capital increase on April 30 “was clearly a defensive move” to offset the impact of “potential capital ‘curve balls’ such as Basel securitization proposals.”

Regulators may publish the final rules next year, JPMorgan said.

Deutsche Bank fell as much as 3.6% to €36.16 in Frankfurt trading, heading for the biggest drop in a month.

The stock will trade at “a high implied risk premium” compared with other European banks, rising to €38 by December, the analysts said. JPMorgan prefers Barclays Plc (BARC), they said.

Rules’ Impact

Regulators are overhauling capital rules after widespread securitization, or repackaged assets that are sliced up and sold on to clients, in the U.S. mortgage market contributed to the financial crisis by spreading risk from lenders to the so-called shadow-banking industry.

Banks have written to the Basel committee to say the plans, which will force them to hold more reserves against such products, will tie up capital and starve the economy of credit.

Deutsche Bank would be the most affected of seven European banks analyzed by JPMorgan under its “worst case” scenario.

Credit Suisse Group AG of Zurich would be the least affected, with its common equity ratio falling 0.2 percentage points, the report shows.

In the “best case,” Barclays would see the measure of its reserves rise 0.2 percentage points while France’s Credit Agricole SA (ACA) would post the group’s biggest decline at 0.3 percentage points, according to JPMorgan.

That scenario is “highly unlikely” and the regulation will probably be closer to the bank’s negative option, they wrote.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Hoenig: Deutsche Bank 'horribly undercapitalized'
« Reply #26 on: June 20, 2013, 08:54:27 AM »
Exclusive: Deutsche Bank 'horribly undercapitalized' - U.S. regulator
14 June 2013
, by Emily Stephenson and Douwe Miedema - Washington (Reuters)
http://www.reuters.com/article/2013/06/14/us-financial-regulation-deutsche-idUSBRE95D0X620130614

A top U.S. banking regulator called Deutsche Bank's capital levels "horrible" and said it is the worst on a list of global banks based on one measurement of leverage ratios.

"It's horrible, I mean they're horribly undercapitalized," said Federal Deposit Insurance Corp Vice Chairman Thomas Hoenig in an interview. "They have no margin of error."

Hoenig, who is second-in-command at the regulator, said global capital rules, known as the Basel III accord, allow lenders to appear well-capitalized when they are not.

That is because the rules allow the banks to use complicated measurements of how risky their loans are to determine the capital they must hold, he said.

But using a tougher leverage ratio measurement - which compares a bank's shareholder equity to its total assets without using risk-weightings - the picture for banks such as Deutsche Bank is very different, he said.

Deutsche Bank this year is almost done raising €5 billion ($6.67 billion) in new debt and equity, boosting its core capital ratio to around 9.5%, which it says has made it one of the best-capitalized banks among its peers.

"To say that we are undercapitalized is inaccurate because if you look at the Basel framework, we're now one of the best capitalized banks in the world after our capital raise,"

Deutsche Bank's Chief Financial Officer Stefan Krause told Reuters in an interview, when asked about Hoenig's comments.

"To suggest that leverage puts us in a position to be a risk to the system is incorrect," Krause said, calling the gauge a "misleading measure" when used on its own.

Deutsche's leverage ratio stood at 1.63%, according to Hoenig's numbers, which are based on European IFRS accounting rules as of the end of 2012.

Deutsche said the number now stands at 2.1% but that it does not look at the gauge.

Using U.S. generally accepted accounting principles, the ratio stood at a much more comfortable 4.5%, Krause said.

OUTSPOKEN CRITIC

The difference is due to the way derivatives on a bank's books are measured.

Neither number directly corresponds to the Basel leverage ratio, which calculates capital in another way and sets a 3% minimum.

The FDIC - which guarantees deposits at U.S. banks - stressed that Hoenig was speaking in a personal capacity and that the agency did not comment on individual banks.

Hoenig staked out a reputation as a dissenting voice against the Federal Reserve's loose monetary policy in the immediate aftermath of the financial crisis when he was president of the Federal Reserve Bank of Kansas City.

He's also an outspoken critic of the Basel III rules - introduced globally after the crisis - which he says do not do enough to reduce the size of the riskiest banks and are easy for them to game.

Other banks with a low ratio, according to Hoenig, are UBS at 2.52%, Morgan Stanley at 2.55%, Credit Agricole at 2.72% and Societe Generale at 2.84%.

Detailed rules for Basel III, which other U.S. politicians and regulators have questioned, are expected to come out in the United States in the next few months, well past the January deadline agreed upon internationally.

DESCRIBES "RIDICULOUS" CHANGE

Hoenig pointed to the gain in Deutsche Bank shares in January on the same day it posted a big quarterly loss, because it had improved its Basel III capital ratios by cutting risk-weighted assets.

"My other example with poor Deutsche Bank is that they lose $2 billion and raise their capital ratio.

It's - I don't want to say insane, but it's ridiculous," Hoenig said.

A leverage ratio is a better method to show a firm's ability to absorb sudden losses, Hoenig says, and he has floated a plan to raise the ratio to 10 percent.

He said the 3% leverage hurdle under Basel was a "pretend number."

Opponents of using such a ratio say that it ignores the risk in a bank's loan books, and can make a bank with only healthy borrowers look equally risky as a bank whose clients are less likely to pay back their loans.

It also fails to take into account how easily a bank can sell its assets - so-called liquidity - or whether it is hedged against risk.

Still, equity analysts said that while Deutsche Bank likely will meet regulatory capital requirements, its ratios look weak.

"(The) capital raise was warmly received by the market," Berenberg Bank said in a note this week.

"However, we still remain concerned about the leverage in the business."

"To get above the 3% level (mandated by Basel), required by 2019, requires four years' worth of profits and, in our view, delays dividends."

($1 = 0.7496 euros)
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Barclays, Credit Suisse, Deutsche Bank Ratings Cut by S&P
« Reply #27 on: July 02, 2013, 06:42:10 PM »
Barclays, Credit Suisse, Deutsche Bank Ratings Cut by S&P
2 July 2013
, by Laura Marcinek (Bloomberg)
http://www.bloomberg.com/news/2013-07-02/barclays-credit-suisse-deutsche-bank-ratings-cut-by-s-p.html

Excerpt:

Barclays Bank, Credit Suisse Group AG and Deutsche Bank AG had their credit ratings lowered by Standard & Poor’s as new rules and “uncertain market conditions” threaten their business.

Long-term counterparty credit ratings for the three banks were cut to A from A+, S&P said today in a statement.

The ratings company also affirmed its A long-term rating and A-1 short-term rating on UBS AG, according to the statement.

The outlook on the banks is stable.

“We consider that these banks’ debtholders face heightened credit risk owing to the industry’s tighter regulation, fragile global markets,

stagnant European economies and rising litigation risk stemming from the financial crisis,” S&P said.

Barclays Bank is part of London-based Barclays Plc, Britain’s third-largest lender by market value.

Zurich-based Credit Suisse is Switzerland’s second-biggest bank after UBS.

Frankfurt-based Deutsche Bank is the No. 1 bank in Germany.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank Needs Capital Amid Higher Leverage, JPMorgan Says
4 July 2013
, by Elisa Martinuzzi (Bloomberg)
http://www.bloomberg.com/news/2013-07-04/deutsche-bank-needs-capital-amid-higher-leverage-jpmorgan-says.html

Deutsche Bank may face a capital shortfall of €12.3 billion ($16 billion) under a proposal on leverage by the Basel Committee on Banking Supervision, according to JPMorgan.

The Basel proposal, which is designed to include assets that are off banks’ books, would lead to a 33% average increase in the balance sheet among the global investment banks tracked by JPMorgan, analysts led by Kian Abouhossein in London wrote in a report to clients today.

A logo sits on the exterior wall of Deutsche Bank AG's headquarters in Frankfurt. Photographer: Ralph Orlowski/Bloomberg

Deutsche Bank “needs to raise capital in our view” or reduce assets by €409 billion to reach the 3% leverage ratio target set by Basel, the analysts said.

Christian Streckert, a spokesman for Frankfurt-based Deutsche Bank, said the company generally doesn’t comment on analyst research notes.

Global regulators are increasingly looking at leverage, in addition to measures based on risk weightings assigned to different assets, to gauge banks’ financial strength.

Their focus intensified after some banks improved capital ratios following the financial crisis by altering internal models or cutting risk-weighted assets without correspondingly shrinking their balance sheets.

By the same Basel measure, Barclays, Britain’s third-biggest lender by market value, will have a leverage ratio of 3.5% by 2015, the analysts estimated.

Still, the bank may also need to raise capital to meet the U.K.’s Prudential Regulation Authority’s leverage requirements, according to JPMorgan.

The bank may need £7 billion ($10.6 billion), or a £240 billion asset reduction, the analysts said.

Chief Executive Officer Antony Jenkins said on June 28 the London-based bank may cut lending if the PRA forces the lender to speed up plans to increase its leverage to 3% by 2015.

A spokesman declined to comment further today.


Let’s Twist Again Like We Did Last Summer ;) http://www.youtube.com/watch?v=oRlT8ZoExGU

Of course this is an other typical case of ‘calling the kettle black’ since the big U.S. banksters try to discredit the EU as much as possible to prop up the dollar.

But aside from that, it’s true. In fact they’re all Zombie banksters.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank Among Lenders Given Two-Year U.S. Swaps Phase-Out
« Reply #29 on: July 16, 2013, 10:00:13 AM »
Deutsche Bank Among Lenders Given Two-Year U.S. Swaps Phase-Out
16 July 2013
, by Jesse Hamilton (Bloomberg)
http://www.bloomberg.com/news/2013-07-15/fed-gives-four-banks-two-year-phase-out-for-certain-swaps-trades.html

Deutsche Bank , the European continent’s biggest bank, is among lenders given an extra two years by the Federal Reserve to separate derivatives trading from U.S. units that get government backing.

The Fed, in letters posted to its website this week, said Frankfurt-based Deutsche Bank, Standard Chartered PLC (STAN), Societe Generale SA (GLE), Canadian Imperial Bank of Commerce, Bank of Montreal, Toronto-Dominion Bank (TD), Credit Agricole SA (ACA), Natixis (KN) SA and Bank of Nova Scotia must determine whether to halt swaps activity or move it to properly capitalized affiliates.

Under the Dodd-Frank Act swaps push-out rule, interest-rate and some credit swaps can still be traded inside the banks.

“The potential impact of granting a 24-month transition period is less adverse than the potential impact of denying the transition period,” Robert Frierson, secretary of the Fed board of governors, wrote in the letters, delaying a deadline that otherwise required the push-out by today.

Forcing the banks to cut off trades sooner could risk “operational problems and market disruption,” he wrote.

Dodd-Frank, enacted in 2010, expanded swaps oversight as U.S. lawmakers sought to make markets less vulnerable after the 2008 credit crisis.

The push-out rule, included in the law by former Senator Blanche Lincoln, requires that equity, some commodity and non-cleared credit derivatives be walled off from bank units with access to deposit insurance and the Fed’s discount window.

The Fed’s letters are almost identical to those the central bank sent to U.S. companies such as Goldman Sachs Group Inc. (GS) and Bank of New York Mellon Corp.

The Office of the Comptroller of the Currency granted the two-year phase-out period last month to national banks it oversees, including JPMorgan Chase & Co. (JPM), Bank of America Corp., Citigroup Inc. (C), Wells Fargo & Co. (WFC) and Morgan Stanley. (MS)

Derivatives, including swaps, are financial instruments used to hedge risks or for speculation.

They’re based on stocks, bonds, loans, currencies and commodities, or linked to specific events like changes in the weather or interest rates.

Options and futures are the most common types of derivatives.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Goldman Slams Deutsche Bank Next, Expects "Severe Revenue/Profit Pressure"
« Reply #30 on: September 27, 2013, 02:29:38 PM »
Goldman Slams Deutsche Bank Next, Expects "Severe Revenue/Profit Pressure"
27 September 2013
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2013-09-27/goldman-slams-deutsche-bank-next-expects-severe-revenueprofit-pressure
 
Excerpt:

Goldman is on a roll: after crucifying JCP only to underwrite their disastrous following on offering (which is already down 4% from the offering price and has to be a world record in the shortest time to rape muppets), it is now Deutsche Bank's turn.

To wit: "We revise our forecasts, to reflect the communicated revenue outlook, litigation provisions and dividends. We now expect a marginal loss in 3Q."

More: "DBK’s warning on 3Q FICC revenue and an expectation of clarity regarding the Fed proposal “very shortly” warrants an update; we continue to rate DBK shares Sell, and see better upside potential elsewhere in the sector" and the punchline:

"Following the Fed proposal’s implementation, we expect severe revenue/profit pressure, driven by a constricted ability to “export” lower funding costs across the Atlantic and operational disruption."

So how many hours until DB announces a Goldman-led equity offering?
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank Names Boeing’s Hammonds For $6 billion Cost Cut Operation
« Reply #31 on: November 08, 2013, 01:09:25 AM »
Deutsche Bank Names Boeing’s Hammonds Information Chief
7 November 2013
, By Nicholas Comfort (Bloomberg)
http://www.bloomberg.com/news/print/2013-11-07/deutsche-bank-names-boeing-s-hammonds-information-chief.html

Deutsche Bank AG (DBK), Europe’s largest investment bank by revenue, said it hired Kim Hammonds, chief information officer of Boeing Co. (BA)

Hammonds will start Nov. 25 and have the same title at Deutsche Bank in addition to being co-head of its global technology and operations unit, the Frankfurt-based bank said in an e-mailed statement today.

Hammonds replaces Anthony McCarthy, who leaves Nov. 15 to pursue other career opportunities, it said.

Deutsche Bank’s overhaul of its information technology systems, as well as job cuts, are at the center of its plan to reduce costs by €4.5 billion ($6 billion) annually by 2015.

The appointment of Hammonds may also help the firm reach a goal of lifting the share of female senior executives to 25 percent by the end of 2018.

Hammonds will report to Chief Operating Officer Henry Ritchotte and will work with Jim Turley, who remains co-head of global technology and operations, according to the statement.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank Drops After Report of Possible Profit Warning
« Reply #32 on: January 17, 2014, 06:18:56 PM »
Deutsche Bank Drops After Report of Possible Profit Warning
17 January 2014
, by Michael J. Moore (Bloomberg)
http://www.bloomberg.com/news/print/2014-01-17/deutsche-bank-drops-after-report-that-firm-weighs-profit-warning.html

Deutsche Bank, Europe’s largest investment bank by revenue, fell the most in more than five months after a report that executives are considering issuing a profit warning.

The bank’s U.S.-listed shares dropped 3 percent to $52.27 at 4:35 p.m. in New York.

The Wall Street Journal, citing people familiar with the matter whom it didn’t identify, said the bank is weighing whether to take the step amid losses incurred through asset sales in the fourth quarter.

The company’s bond-trading division also struggled during the period, according to the report.

Renee Calabro, a Deutsche Bank spokeswoman in New York, declined to comment. The firm is scheduled to report results before markets open on Jan. 29.

Deutsche Bank is seeking to resolve probes into whether it rigged interest rates and misled clients, and said it has received requests for information from regulators investigating attempts to manipulate the $5.3 trillion-a-day foreign exchange market.

The bank’s U.S.-listed shares fell as much as 5.1%, the biggest intraday decline since July 30, before paring losses.

Also see:

Deutsche Bank Withdraws From Gold Fixing in Commodities Cuts
17 January 2014
, by Maria Kolesnikova and Nicholas Larkin (Bloomberg)
http://www.bloomberg.com/news/print/2014-01-17/deutsche-bank-withdraws-from-gold-fixing-in-commodities-cutback.html
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline jofortruth

  • Member
  • *****
  • Posts: 17,586
    • The Great Deception
* Gold up 4th straight week, Deutsche quits gold price-setting! Interesting!
« Reply #33 on: January 18, 2014, 10:26:16 AM »
http://www.reuters.com/article/2014/01/17/markets-precious-idUSL3N0KR2R720140117

Quote
The market was surprised by news of Deustche Bank withdrawing from gold and silver benchmark setting, or fixing, as German regulators investigate suspected manipulation of
precious metals prices by banks.

Deutsche, one of five banks involved in the twice-daily gold fix for global price setting, said Friday it was dropping out of the process after withdrawing from the bulk of its commodities business.


http://www.infowars.com/gold-up-4th-straight-week-deutsche-quits-gold-price-setting/

Quote
... as German regulators investigate suspected manipulation of precious metals prices by banks.

Deutsche, one of five banks involved in the twice-daily gold fix for global price setting, said Friday it was dropping out of the process after withdrawing from the bulk of its commodities business.


And just how long have the TOO BIG TO FAIL BANKS been gold price fixing? FOREVER! About time they were investigated!
Don't believe me. Look it up yourself!

The Great Deception - Forum/Library - My Research
http://z4.invisionfree.com/The_Great_Deception/index.php?showforum=110

Offline jofortruth

  • Member
  • *****
  • Posts: 17,586
    • The Great Deception
German Gold Manipulation Blowback Escalates - Deutsche Bank Exits Gold Price Fixing:
http://www.zerohedge.com/news/2014-01-17/german-gold-manipulation-blowback-escalates-deutsche-bank-exits-gold-price-fixing
http://www.zerohedge.com/news/2014-01-16/precious-metals-manipulation-worse-libor-german-regulator-says

Quote
Germany's blowback against gold manipulation is accelerating. Following yesterday's report that Bafin took a hard line against precious metals manipulation, after its president Eike Koenig said possible manipulation of precious metals "is worse than the Libor-rigging scandal", today the response has trickled down to Germany and Europe's largest bank, Deutsche Bank, which announced that it would withdraw from the appropriately named gold and silver price "fixing", as European regulators investigate suspected manipulation of precious metals prices by banks. As a reminder, Deutsche is one of five banks involved in the twice-daily gold fix for global price setting and said it was quitting the process after withdrawing from the bulk of its commodities business.
Don't believe me. Look it up yourself!

The Great Deception - Forum/Library - My Research
http://z4.invisionfree.com/The_Great_Deception/index.php?showforum=110

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank Posts €1.2 Billion Fourth-Quarter Pretax Loss
« Reply #35 on: January 20, 2014, 01:56:38 AM »
Deutsche Bank Posts €1.2 Billion Fourth-Quarter Pretax Loss
19 January 2014
, by Nicholas Comfort (Bloomberg)
http://www.bloomberg.com/news/print/2014-01-19/deutsche-bank-posts-eu1-2-billion-fourth-quarter-pretax-loss.html

Excerpt:

Deutsche Bank, Europe’s biggest investment bank by revenue, reported a surprise fourth-quarter loss, hurt by legal costs and accounting charges.

The bank had a pretax loss of €1.15 billion ($1.56 billion) on €528 million in litigation-related expenses, as well as costs tied to its reorganization and charges to adjust credit, debt and funding valuations, the Frankfurt-based firm said yesterday in a statement.

The average estimate of six analysts surveyed by Bloomberg was for a €628.5 million pretax profit. The bank announced results 10 days ahead of schedule.

Deutsche Bank is putting aside funds to settle probes and lawsuits that include allegations it deceived clients about products linked to U.S. mortgages and that its traders attempted to rig benchmark interest rates.

The firm is spending money to improve controls, reduce headcount and move staff to cheaper locations as part of a plan to increase profitability.

“It is quite a messy result filled with legal and restructuring costs, which Deutsche would call as one-offs,” said Chad Padowitz, who oversees about $105 million in international equities as chief investment officer of Melbourne-based Wingate Asset Management.

“The biggest challenge for Deutsche and its European counterparts is to find avenues for growth.”

Deutsche Bank Co-Chief Executive Officers Anshu Jain and Juergen Fitschen said in the statement they are “confident” the bank can reach targets they set for 2015.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank to slash U.S.-based assets by $100 billion: FT
« Reply #36 on: February 27, 2014, 03:24:20 AM »
Deutsche Bank to slash U.S.-based assets by $100 billion: FT
23 February 2014
, (Reuters)
http://www.reuters.com/article/2014/02/23/us-fed-banks-deutsche-idUSBREA1M15Q20140223

Deutsche Bank has laid out plans to reduce its U.S. balance sheet as the U.S. Federal Reserve adopts new rules to shield the country's taxpayers from costly bailouts, the Financial Times reported on Sunday.

The lender is expected to reduce its $400 billion balance sheet in the United States to around $300 billion in part by reassigning operations such as its Mexican arm and its Frankfurt and Tokyo-based repo businesses that are currently part of its U.S. business elsewhere, the FT reported. (link.reuters.com/raz96v)

The financial daily said that the bank will also reduce a sizeable chunk of its repo business in the U.S. after discovering that some of its clients were not making use of its other offerings.

The bank may reassign U.S.-based operations to Europe or Asia to reduce assets in its U.S. division, the newspaper said.

Deutsche's Chief Financial Officer Stefan Krause told the FT that the lender was confident it would be able to meet the new capital and leverage requirements imposed on its U.S. unit.

Krause said that the balance sheet adjustment should not be seen as a pullback from the bank's U.S. franchise, where the lender is focused on growing its asset and wealth management business as well as battling to regain ground lost to U.S. rivals in its flagship fixed income arm.

Deutsche Bank plans to convert some of the existing debt its U.S. arm owes to its German arm into hybrid debt that would convert into equity capital under certain conditions, according to the FT.

Deutsche Bank is also hoping that the German regulator will soon give it the green light to raise up to 6 billion euros in additional capital through hybrid debt to help it improve its leverage ratio in Europe, the newspaper added.

According to the new capital rules for foreign banks announced by the Fed last Wednesday, the largest foreign banks, with $50 billion or more in U.S. assets, will need to set up an intermediate holding company subject to the same capital, risk management and liquidity standards as U.S. banks.

The Fed also gave foreign banks a year longer to meet the requirement to set up the new structure, with the new deadline set as July 1, 2016. Both changes had been widely expected in the market.

Foreign banks with sizable operations on Wall Street such as Deutsche Bank and Barclays (BARC.L) had pushed back hard against the plan because it means they will need to transfer costly capital from Europe.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank Said to Plan Job Cuts In Addition To 2,000 Announced In 2012
« Reply #37 on: March 19, 2014, 12:19:16 PM »
Deutsche Bank Said to Plan Job Cuts at Investment Bank
19 March 2014
, by Elisa Martinuzzi, Ambereen Choudhury and Nicholas Comfort (Bloomberg)
http://www.bloomberg.com/news/print/2014-03-19/deutsche-bank-said-to-plan-job-cuts-at-investment-bank.html

Excerpt:

Deutsche Bank AG, Germany’s biggest bank, plans to cut more jobs at its investment bank to lower costs as business stagnates, two people with knowledge of the plan said.

The bank is weighing the reductions, which come in addition to the 2,000 announced in 2012, over the coming months across its corporate finance, capital markets and trading businesses
, said the people, who asked not to be identified because the details aren’t public.

Managing directors are included in the plan, they said.

The cuts are a result, in part, of the bank’s decision to increase base pay for senior bankers, boosting fixed costs, two people said.

No decision has been made on the total number of job losses, the people said.

Deutsche Bank joined JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) last week in saying investment banking revenue came under pressure in the first months of the year, which typically make the largest contribution to earnings.

Clients are trading less as the Federal Reserve slows its monthly asset purchases and leaves bond investors preparing for rising interest rates.

Some banks are facing pressure to raise pay as European Union curbs on variable compensation kick in this year.

“The swathes of recent legislation which have the net effect of increasing fixed costs render all institutions more vulnerable to short-term pressures as they are less flexible around their cost base,” said John Purcell, chief executive officer of Purcell & Co., a London-based executive-search firm.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank Among 15 Europe Lenders Cut to Negative by S&P
« Reply #38 on: April 29, 2014, 04:59:31 PM »
Deutsche Bank Among 15 Europe Lenders Cut to Negative by S&P
29 April 2014
, by Zachary Tracer (Bloomberg)
http://www.bloomberg.com/news/print/2014-04-29/deutsche-bank-among-15-european-lenders-cut-to-negative-by-s-p.html

Deutsche Bank, Germany’s largest lender, was among 15 European banks that had their outlooks cut to negative by Standard & Poor’s on the prospect that governments are less likely to provide aid.

The outlooks were lowered from stable “to reflect our view that extraordinary government support is likely to diminish as regulators implement resolution frameworks,” the ratings firm said today in a statement.

Financial overseers have been increasing regulations to limit a repeat of the bailouts that propped up lenders hobbled by the 2008 financial crisis.

Switzerland and the U.K. are among nations that have stated their intention to use resolution powers to wind down struggling lenders in ways that limit the burdens on governments, S&P said.

The European Parliament approved a bill this month that requires 8% of a failing bank’s liabilities be wiped out before recourse can be made to industry-financed resolution funds and other backstops.

The plan is part of an effort to make unsecured bondholders share losses when banks require bailouts. The rules must also be passed by the EU’s 28 national governments.

EU governments provided €592 billion ($817 billion) to support banks from October 2008 through the end of 2012, according to the European Commission.

“European authorities are taking steps to increase the resolvability of banks and require creditors rather than taxpayers to bear the burden of the costs of failure,” S&P said.

Ratings could be cut if “we perceive that support for senior unsecured creditors is less predictable under the new legislative framework.”

Barclays, UBS

Credit Suisse Group, UBS and London-based Barclays are among companies that saw the outlook cut to negative for either the parent entity or a banking unit.

Deutsche Bank’s rating at S&P was cut in July to A, the sixth-highest of 10 investment grade levels.

Barclays and Zurich-based Credit Suisse were lowered that month to A- as S&P said new rules and “uncertain market conditions” threaten their business.

Renee Calabro at Frankfurt-based Deutsche Bank, Credit Suisse’s Eva Radtke, Barclays’s Kerrie Cohen and Karina Byrne at Zurich-based UBS had no immediate comment.

Standard & Poor’s has scheduled a conference call for 2 p.m. London time tomorrow to discuss the credit grades.
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,615
  • Know Thyself
Deutsche Bank profit down 34% as revenue falls
« Reply #39 on: April 30, 2014, 12:10:22 AM »
Deutsche Bank profit down 34% as revenue falls
29 April 2014
, by Eyk Henning - Frankfurt (MarketWatch)
http://www.marketwatch.com/story/deutsche-bank-profit-down-34-as-revenue-falls-2014-04-29

Deutsche Bank AG said Tuesday that first-quarter profit dropped 34%, pressured by falling revenue at its flagship fixed-income unit and on regulatory costs.

Germany's largest lender reported net profit of €1.1 billion ($1.5 billion), down from €1.65 billion a year earlier and above analysts' estimates of €927 million.

Revenue fell to €8.39 billion from €9.4 billion a year earlier.

Deutsche Bank Co-Chief Executives Jürgen Fitschen and Anshu Jain said the bank had progressed toward its 2015 objectives, that include an after-tax return on equity of more than 12%, a cost-income ratio of less than 65%, and a capital ratio above 10%.

Revenue from Deutsche Bank's large fixed income sales and trading business fell 10% to €2.4 billion, in line with most U.S. and European rivals.

Its core tier-one capital ratio, an important measure of the bank's financial strength, fell to 9.5% at the end of March, down from 9.7% three months earlier as its volume of riskier assets increased.

Investors are concerned about Deutsche Bank's ability to boost capital without raising fresh equity.

People familiar with the matter said Friday that it could launch a capital increase to strengthen its balance sheet before the European Central Bank starts supervising the euro zone's largest banks in November.

A new regulatory charge imposed by the European Banking Authority will push the bank's capital ratio down to around 9% in the second or third quarter, possibly making Deutsche Bank one of the weakest-capitalized major international banks, analysts have said.

Meanwhile, the bank is grappling with a series of pending investigations and lawsuits that may incur costs later this year, putting further pressure on capital.

"We are committed to our 10% core tier-one ratio target," the bank said Tuesday.

In a separate move, the bank said late Monday that it would issue a capital-boosting hybrid bond of at least €1.5 billion in coming weeks.

The move will improve its leverage ratio, which measures total assets relative to loss absorbing capital.

Deutsche Bank's leverage ratio stood at 3.2% at the end of March, up one notch over three months ago and above the 3% minimum threshold.

"We have taken another step forward in building a better capitalized bank by launching the inaugural issue of our €5 billion additional tier-one capital program," Mr. Fitschen and Mr. Jain said.
->>>|:-) THE CITY INDIANS (-:|<<<-