Sunday, October 16, 2016

Deutsche Bank: farewell to the world League? – Handelsblatt

Headquarters of Deutsche Bank in Frankfurt

Many of the legal Legacy issues, such as those relating to the sale of rotten mortgage-backed securities in the United States, the Bank and its current chief John Cryan powerful.

(photo: Reuters)

BerlinThe German Bank is considering, according to insiders, the investment banking in the USA to withdraw. The largest German Bank, by computing whether the business’s wages, and there, as in other foreign markets – below – the-line, said two with the Reflections of familiar people on Saturday, the Reuters news Agency.

Conceivable is, for example, that the money from the house to accompany German companies on the capital markets in the United States, but not American companies, said one of them. It is, in principle, has also been spoken in the Supervisory Board, decided nothing, but another said. “This is now much more likely than a sale of such asset management”, cited the “Süddeutsche Zeitung” at the weekend, an undisclosed source.

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If the Considerations in the USA were concrete, this would be a radical departure from the ambitions, which had connected the German Bank, once with the entry into the global capital markets business with the Acquisition of Bankers Trust. You always wanted to play in the concert of the big US investment banks such as JP Morgan and Goldman Sachs. However, since the reforms following the global financial crisis, banks for risky businesses must put significantly more capital, what makes the business less lucrative. In addition, the German Bank had to be negotiated with your ambition legal risks, which threaten to make up a large part of the income subsequently destroyed.

Currently, she is negotiating about the dispute over the sale of rotten mortgage-backed securities (RMBS) with the U.S. Department of justice over a billion-dollar fine. The US authorities were left with a claim of $ 14 billion (12.5 billion Euro) in the negotiations. A partial withdrawal of the Bank from the United States could appease the Americans.

The “Welt am Sonntag” reported in advance, a reduction of business in the United States – especially in the speculative investment banking – could also be the precondition for an agreement with the US Department. “Changes in the business model and a penalty on the other hand, are often a condition of a settlement with the U.S. government,” quoted the newspaper, an Insider. Possible Changes – including a reduction in personnel – are expected to soon be announced.

The German Bank engaged in the U.S. currently, about one-tenth of its slightly more than 100,000 employees.

in financial circles that Germany’s largest money house aims to reach agreement with the US authorities before the presidential election on may 8. November. So far, she has made according to insider estimates, around 3.5 billion Euro for this penalty payment, and a total of 5.5 billion euros. The significantly higher demand from the US had alarmed investors. They feared that the German Bank would need fresh capital if the penalties have to be high.

According to a report by the “Wall Street Journal” you might not count in the case of a capital increase, but on the support of the Federal government. A government representative explained last week to members that the state will not participate, reported the business newspaper, citing participants of the meeting. “The rules for Bank resolution have changed since 2009″, and it must hold also in Germany, have said to the government representatives. It was “unthinkable” that the state is participating as of 2009, the Commerzbank, the Deutsche Bank. The Bank and the Federal Ministry of Finance did not want to comment on that.

Officially, the government has repeatedly stated that state aid for the German Bank. Insider report, behind the Scenes they do, but thoughts about the future of Germany’s largest money house. There was a way to get the state from imminent Bankruptcy: The government can opt in to a healthy Bank, if private investors participate and the state in the proportion to the usual market conditions buy. Check the would rules the EU Commission under state aid. A Bank would, in fact, before the Bankruptcy, would be the “single resolution mechanism”. Then the house would have to first ask the shareholders and creditors to the cash register.


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