Thursday, January 21, 2016

The descent of the Deutsche Bank – FAZ – Frankfurter Allgemeine Zeitung

headquarters of Deutsche Bank in Frankfurt

The thesis applies to continue: The German bank is not for the German banking system. This was true in the fat years before the financial crisis, as Germany’s largest bank, thanks to the investment bankers in London and New York made billions in profits. And that applies also continue, for now, the investment bankers are the cause of billions of losses and still far from being concluded litigation. All this makes the German bank like no other German bank.

Markus Fruehauf  Author: Markus Frühauf, editor-in business.

The Commerzbank may again pay a dividend for the first time. DZ Bank is strong enough to forge together with WGZ Bank is the third largest German commercial bank. And smaller banks such as the Frankfurter Volksbank up with a simple business model good profits. That should not obscure the challenges faced by the industry with digitalization and the after-effects of low interest rates. But hold remains: As bad as the German bank is no other institution is currently

The competitors from Wall Street, with which the board members in the Frankfurt twin towers have previously so happy measured are long enteilt. JP Morgan has earned more than 24 billion dollars in the past year, the Bank of America $ 14.4 billion. The two major US banks had for the sins of the financial crisis on the most pay: JP Morgan paid penalties more than 37 billion dollars that Bank of America even more than twice. Since it can not even keep up with the German bank. For her, the effort for legal risks and penalties amounted to now 12.4 billion euros since 2012 Design. The two capital increases with a total of 11.5 billion euros, which had been carried out even under the resigned in June 2015 Co-CEO Anshu Jain are already depleted. Just investor confidence. Since the beginning of the share price more than a quarter of its value lost. On Thursday, he slipped below the mark of 17 euros, which is since spring 2009, a record low.

That Jains successor Cryan with a record loss of 6.7 billion euros completes his first year after tax, is not only to the litigation. For the full year, the write-downs in the third quarter on investment banking and Postbank loaded with 5.8 billion euros. So the Brite cleans up in the balance sheet. For legal risks the Bank has been putting off 5.2 billion euros. The provisions now amount to a total of 6.0 billion euros. Cryan designated in a letter to the employee for the loss as sobering. Even in 2008, when the financial crisis fully broke through, the loss was 3.9 billion euros lower from.

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The charges were the consequence of the reorganization of the Bank, so Cryan. This regulatory proceedings and litigation are to be concluded as soon as possible, according to his words. Currently, the Bank is faced with the money laundering scandal in the Moscow office and with complaints of loss-making mortgage bonds in the United States. Recently made a complaint relating to an alleged cheating software in forex business a stir. The aggrieved customers to include central banks. Clear can not give Cryan currently. Employees, he announced in the next two years at hard labor and other charges related to the realignment and urgently needed investments. A vulnerability are in his view the outdated IT systems.

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The German bank plans to cut 9,000 positions and its subsidiary Postbank sale. Overall, the number of employees will decrease by 30,000 to 77,000. The date planned for the Postbank IPO may be delayed because of tax law issues. On January 28, Cryan will explain the results in 2015 in an annual press conference. It has been known that the shareholders for the past and for the current year, no dividend can be obtained. With tension is expected extent to which performance fees are reduced. Cryan had announced this step several times. The long years with bonuses spoiled investment bankers have experienced a revenue decline in the fourth quarter. The fourth quarter resulted in a loss after taxes of EUR 2.1 billion.

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