Wednesday, January 18, 2017

Deutsche Bank: U.S. Department of justice, confirmed billion due to mortgage-Deals – MIRROR ONLINE

The Deutsche Bank can be one of your largest Contaminated site clean up. The long-awaited settlement with the US authorities over a shady business on the American real estate market. The U.S. justice Department confirmed on Tuesday night, the agreement on dubious Deals with mortgages, which is Germany’s largest money house will cost a total of $ 7.2 billion.

According to official data it is the highest penalty that has been imposed in the case ever against a single Bank – and many big investment banks already had to pay. And so they came lightly of it. Originally, the U.S. wanted to ask Bank supervisors, the Institute, with about 14 billion dollars to the cashier. The critique of the frankfurters was particularly damning: “The German Bank has not only deceived investors”, – said the Minister of justice, Loretta Lynch. “You directly contributed to an international financial crisis.”

The US mortgage comparison will make for the Deutsche Bank in the fourth quarter of noticeable. For pre-tax earnings in the last three months of 2016, was to be expected because of the fine, with a negative impact of almost $ 1.2 billion, wrote to the chief Executive officer, John Cryan, in a letter to employees.

For the chief Executive officer, John Cryan, the negotiation result is a liberating step. As the original request of the Americans last autumn was leaked, caused the temporarily for a crash of the German Bank on the stock exchange. Because many investors feared that such a sum could overwhelm the Institute, with its relatively thin capital base, and even a rescue by the state. Customers withdrew funds in the volume of Billions.

a lot of Details to doubt the fairness of transactions

Shortly before Christmas was known that the German Bank in a mortgage dispute at the end much cheaper. The principle had managed to reach agreement with the US authorities. In the closed comparison, the largest German Bank and the US Department of justice

However, in written form, the agreement has been poured, it is only now, a few days before the change of President in the USA, garnished with numerous Details to question the business practices of the Frankfurt on the once-lucrative US real estate market, according to Deutsche Bank bought before the financial crisis in the great style, bad mortgages, packaged these in highly complex securities and sold them to investors around the world.

As the Bonds with the slump in the housing market in 2007, at a stroke, were worthless, lost many investors money and felt deceived. The Explosive While Deutsche Bank sold the papers to the outside as a safe Investment bet internally on the great Crash, as of 2011, out of a damning inquiry report of the US Senate was gone. Hollywood inspired the later to the gambling movie “The Big Short”.

Cryan: “Not acceptable”

Chairman of the Board, Cryan, in the summer of 2015 with the promise started, clean out the Bank consistently, is not put on the hair shirt: “Our behavior in this matter in the years 2005 to 2007, meets our Standards and is unacceptable,” said the Briton. “We apologize unreservedly for this. We have withdrawn from many of the affected shops and our Standards greatly improved.”

With the help of Credit Suisse had agreed to the U.S. justice Department also shortly before Christmas, to 5.3 billion dollars, including 2.5 billion in cash. The state of things with the Swiss, Loretta Lynch did not comment initially. The parallel negotiations with the British Bank Barclays had burst, however, by the end of 2016. Of the armed

The German Bank may lift the penalty according to the assessment of most analysts are without a capital increase. But smolder still other great litigation, about the money laundering scandal in Russia. Here, too, the US authorities were investigating at the forefront.

The processing of this affair, binds internally also a lot of resources, such as Insider reports. This would address Cryan like to increasingly strategic issues. Because some of the powerful big investors chomping at the bit – you want, once again, a Revision of the business model. Here in the spring, at the latest, the annual General meeting in may are expected corrections. This is according to financial circles, in particular, the future of Postbank, which proves to be unsaleable, and to further cuts in investment banking.


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