In the long-term interests of our bank, however, we have no choice.”, An equities trader in New York predicted that the layoffs on the equities floor would be swift: “It’s obviously going to suck for a couple of years.”, One IT worker leaving their City of London office said the bad news was dished out briskly on Monday morning: “I was terminated this morning. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. If things don't go according to plan, Deutsche Bank could go from bad to worse. A high-level overview of Deutsche Bank Aktiengesellschaft (DB) stock. All rights reserved. Deutsche Bank has said that it won't raise additional capital to fund its restructuring plan. The German lender insists that its latest turnaround effort, which, Instead of cutting back weaker divisions, Deutsche Bank said it will close some of them entirely. Despite the streamlining measures, it cannot shake off the negative headlines. Deutsche was one of Trump’s biggest lenders, sticking by the real estate mogul when other US banks refused to lend after he went through a series of bankruptcies. As regulators continue to sift through the wreckage of the banking crash, Deutsche takes a large slice of the blame. In 2008 Trump claimed the financial crisis was an unforeseen event and refused to repay $330m to Deutsche, countersuing for $3bn compensation for Deutsche’s role in the crisis. Most stock quote data provided by BATS. There was a very quick meeting and that was it.”, An equities trader emerged from Deutsche Bank’s London offices and headed to the pub, saying: “I got laid off; where else would I go?”, Another equities trader in Hong Kong said their offices had been gripped by news of the layoffs: “There is hardly any work getting done today and folks are just mailing or calling friends or headhunters. "The key challenge is execution. Some people are saying their byes even before being called in.”, A banker leaving the Hong Kong office confirmed that Deutsche had begun implementing the cuts on Monday: “If you have a job for me, please let me know.”, A Singapore banker who remains in his job questioned whether Sewing’s plan would revive Deutsche’s fortunes: “The biggest question for us is where do we go from here if we don’t offer the whole suite of products? In the years leading up to the banking crash, Deutsche Bank is a leader in mortgage-backed securities, bundling up homeowners’ debt into huge packages and selling them on to investors. ", CFO James von Moltke said Monday that the company wants to at least break even in 2020, but he cautioned that there's a "significant amount of uncertainty in that forecast.". To analysts, the logic behind the restructuring program makes sense. What Happened: As the Jeffrey Epstein saga continues to move forward, even more controversy is surrounding the case similar to when Jeffrey Epstein apparently killed himself. Deutsche’s boss Josef Ackermann, a Swiss banker, stepped down after a decade in the top job in May 2012. Matt S May 29 th 2016. It could be a scam, Sales drop at Trump businesses hit hard by pandemic, toxic image, Biden signs executive order to promote $15 federal minimum wage, Ex-Trump official who supports Biden stimulus plan speaks out, Biden revokes Keystone XL pipeline permit, Many believed conspiracy theories about Trump and the election. It eventually reaches a $7.2bn settlement with the US Department of Justice. The latest news is that the son of a US judge, Esther Salas, who was overseeing a lawsuit against Deutsche Bank that has had financial dealings with Jeffrey Epstein, […] Since 1998, the bank has lent him a total of more than $2 billion, and Mr. Trump owed Deutsche Bank more than $300 million at the time he was sworn in as president. In 2008 the bank reports its first annual loss for five decades , losing €3.9bn. For example, in April 2015 it had to agree to pay a combined $2.5 billion in fines to American and British authorities for its involvement in the Libor scandal, where several banks were accused of colluding to fix interest rates widely used … August 2016 — Deutsche Bank and Credit Suisse are removed from Europe’s blue-chip STOXX Europe 50 index due to the sharp decline in the market value of both stocks. Deutsche is fined $2.5bn (£1.7bn) by US and UK regulators for rigging the key Libor interest rate. Shares of Deutsche Bank () climbed more than 12% on Monday after the German banking giant said it expects to report a first-quarter profit on higher-than-expected revenue. What Happened: Deutsche Bank surveyed 627 market professionals last week, with 89% of respondents saying they find some financial markets to … The Frankfurt-based lender embarks on a period of global expansion, beginning with the acquisition of blue-blooded merchant bank Morgan Grenfell in the UK. But investors and analysts are skeptical that the bank can hit its new revenue targets amid a costly overhaul. A former Deutsche Bank executive who reportedly signed off on some of the institution’s unorthodox loans to Donald Trump killed himself in his Malibu home on November 19. Last year New York financial regulators hand down a fresh fine, $205m this time, for “lax oversight” in the bank’s foreign exchange business between 2007 and 2013, when it was the world’s largest dealer in foreign currency. It was during this transitional period that Charles Schwab opened a small brokerage in San Francisco a… Deutsche Bank’s $8.3 billion transformation comes with a promise: This time will be different. All rights reserved. An internal investigation finds that the bank hired private detectives to spy on people it considered a threat to the bank – including a shareholder, a journalist and a member of the public. The focus will instead be on corporate money management, a less glamorous but more reliable line source of revenue. The German lender insists that … Disclaimer. "[The] restructuring in our view is bold and for the first time not half-baked," JPMorgan Chase analysts Kian Abouhossein and Amit Ranjan said in a note Monday. Here’s how the 149-year-old bank ran into trouble. Deutsche Bank’s drastic retrenchment marks the latest chapter in a dramatic fall from grace for a bank that was riding high until the banking crisis struck in 2008. In 2017 UK and US regulators fine Deutsche more than $630m after finding that the lender failed to prevent $10bn of Russian money laundering via “mirror trades”, which had no economic purpose and served only to transfer money covertly. Trump and Deutsche’s commercial real estate division settled in 2010 but Deutsche’s private banking business continued to lend to Trump. This will move Deutsche Bank closer to its origins as the go-to financier for Germany's exporters. (Bloomberg) -- Germany’s top financial regulator is examining transactions by Deutsche Bank AG supervisory board member Alexander Schuetz linked to … All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. Even so, there's some concern that Deutsche Bank's plan to go all in on corporate money management won't yield the intended results. Maintaining our rating of underperform, speculative risk.” Graeme Wearden. The fine is a record for Libor transgressions. But not everyone is so sure. Management is promising "no compromises" and "relentless execution discipline.". MSNBC anchor Stephanie Ruhle spent 14 years working in investment banking for Deutsche Bank, where she climbed the corporate ladder and was rewarded for her success. A key character in The Big Short movie about the sub-prime scandal – played by Ryan Gosling – was based on a Deutsche Bank trader who was enabling investors to bet against the very market in which Deutsche was involved. The complaint alleges that Deutsche Bank AG “failed to properly monitor customers that the Bank itself deemed to be high risk, including, among others, the convicted sex offender Jeffrey Epstein.” The bank continues to sell toxic mortgage-based investments even as the market turns south and it begins betting against such products itself. 1975– U.S. Congress deregulated the stock brokerage industry by stripping the NYSE of the power to determine the commission rates charged by its members. Deutsche Bank upbeat on investment bank revenue Oct. 28, 2020 at 3:06 a.m. "The extent of the restructuring indicates an acceptance and willingness for change," Thomas Hallett, an analyst at Keefe, Bruyette & Woods, said in a note. Factset: FactSet Research Systems Inc.2018. The market value of, "We tried to compete in nearly every corner of the banking market at the same time," said Sewing. Capitalising on the rapid pace of globalisation, it pushes into European markets such as Spain, where it buys Banco de Madrid. All times are ET. Deutsche Bank AG said five former management board members are under investigation for tax evasion, days after the first two bankers were convicted in Germany’s long-running Cum-Ex scandal. In a late-night announcement last week, Deutsche Bank shocked investors with a warning that it will lose €6.2 billion in the third quarter — a record loss Christian Sewing, Deutsche Bank's chief executive, told staff that the cutbacks were regrettable but inevitable: “We are making deep cuts. "Most of the questions today are not around whether they can cut costs," said Andrew Stimpson, an analyst at Bank of America Merrill Lynch. It consolidates its US operations into one, in an effort to take on the big beasts of Wall Street such as Goldman Sachs, and in 1999 it builds on its US foothold by snapping up New York-based Bankers Trust for $10bn (£8bn). Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. The bank’s entanglement with the Trump family dates back to the 1990s when Bankers Trust continued to lend to him when others had pulled out. But not everyone is so sure. Deutsche Bank’s drastic retrenchment marks the latest chapter in a dramatic fall from grace for a bank that was riding high until the banking crisis struck in 2008. ", Two decades ago, Deutsche Bank dreamed of competing with, But the bank has struggled over the past decade. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. The bank's statute was adopted on 22 January 1870, and on 10 March 1870 the Prussian government granted it a banking licence. The talks fell apart in April, scuppering plans for a bank that would have been the eurozone’s second largest. I personally greatly regret the impact this will have on some of you. Deutsche Bank was one of a series … “We have made mistakes, as everyone did,” said chief executive Josef Ackermann. This led to the infamous “sub-prime debacle”. Deutsche Bank like many other foreign banks operating in the U.S. has suffered from the lack of a retail network of banking locations which can support their investment banking operations. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. Drastic job-cutting is the latest chapter in the 149-year-old bank’s dramatic history, Tue 9 Jul 2019 11.02 BST Shares fell more than 5% Monday in a stinging vote of no-confidence, and were trading another 4% lower on Tuesday. Will clients stick with us or is the game over?”, Banking expert Philip Augar says Deutsche had bowed to the inevitable: “Their ambition was to challenge the Wall Street giants. What happened Shares of Deutsche Bank AG (NYSE:DB) traded up more than 13% on Thursday after U.S. money management firm Capital Group disclosed a 3.1% stake in … The biggest source of anxiety is that Deutsche Bank has little room for error. T he myriad of legal troubles it’s faced have cost Deutsche Bank an incredible amount of money in the last few years. He was succeeded by Christian Sewing, who said yesterday the bank had “no choice” in axing 18,000 staff. Below is an excerpt from an article posted by Super Station 95 News NY. London (CNN Business)Deutsche Bank's $8.3 billion transformation comes with a promise: This time will be different. That's not the kind of momentum it needs. Now, they're losing faith. Up to the 2008 banking crash, Deutsche Bank was a leader in bundling up homeowners’ debt into huge packages and selling them to investors. All rights reserved. WHAT HAPPENS IF DEUTSCHE BANK FAILS? There also is the issue of being involved with Donald Trump and … Deutsche Bank has a three-decade-long relationship with Trump, as the bank helped finance several of the Trump Organization's real-estate projects.. Trump is thought to have borrowed at least $2bn from Deutsche with about $300m outstanding. ", The company will now try to return to its roots with. The bank is fined a further $258m in the US for doing business with US-sanctioned countries like Iran and Syria. After struggling to recover from the financial crisis, Deutsche attempts to organise a merger with another troubled German lender, Commerzbank. The seizure and consolidation of power by the Nazis during the years of the Third Reich also greatly affected the Reichsbank.A 1937 law re-established the Reich Government's control of the Reichsbank, and in 1939, the Reichsbank was renamed the Deutsche Reichsbank (“Bank of the German Reich”, lit. The advice given in this “Super Station 95” news article is excellent re preparing to cover your basic needs in the event of a global financial crash. Deutsche Bank was founded in Berlin in 1870 as a specialist bank for financing foreign trade and promoting German exports. Your support powers our independent journalism, German lender counts cost of plan to cut 18,000 jobs as it records €3.1bn shortfall, Managers called high-end tailors to London office as thousands of traders lost jobs, Report says justice officials examining if bank broke foreign corruption or money-laundering laws, Tailors visited executives at London office on day 18,000 staff cuts were announced, Available for everyone, funded by readers. What impact could deplatforming Donald Trump have? Discount brokers, which focused primarily on buying and selling securities, seized the opportunity to court more seasoned investors who might not require the advice or research offered by established brokers. Here’s a re-cap of what’s happened at Deutsche Bank over the past 15 months: In April of 2014, Deutsche Bank was forced to raise an additional 1.5 Billion of … The story so far Reuters. "We simply spread ourselves too thin. Deutsche Bank posts worst quarterly loss in four years, Deutsche Bank chief rebukes executives over suit-fitting on cuts day, Deutsche Bank 'faces US investigation' over work for Malaysia's 1MDB fund, Deutsche Bank bosses fitted for £1,200 suits as thousands lose their jobs, Deutsche Bank starts cutting London jobs with 18,000 at risk worldwide, Deutsche Bank boss Christian Sewing not squeamish about job cuts, By blaming 'industry challenges', Deutsche Bank is clutching at straws, Deutsche Bank staff sent home as 18,000 job cuts begin - as it happened, Profile of Deutsche Bank boss Christian Sewing, Nils Pratley: Deutsche Bank is clutching at straws, reports that senior Deutsche executives blocked employees from alerting the federal government about suspicious activity alerts, In 2008 Trump claimed the financial crisis was an unforeseen event. ET by Pietro Lombardi Deutsche Bank swings to profit, revenue grows Deutsche said it would “review all alternatives” – and at the weekend Sewing announces 18,000 jobs cuts, 20% of its workforce, with the axe falling worldwide. Sale of toxic securities leading up to the financial crisis. The bank was also ordered to fire seven employees and accused of being obstructive towards regulators in their investigations into the global manipulation of the benchmark rate. Germany's biggest bank is cutting thousands of jobs. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Expert: Social media to extremism is like oxygen to fire, Watch this rocket launch from the wing of a jumbo jet, Wall Street is killing the European investment bank. The time horizon — the bank wants to offload its unwanted assets and increase core revenues by 10% to €25 billion ($28 billion) by 2022 — is making investors nervous. The German government had been in favour of the deal, but the two banks said the risks and costs were too great. Those assets will be sold over the coming years, freeing up money to invest elsewhere. Acquisitions are part of its ambition to become a major player in investment banking. © 2021 Guardian News & Media Limited or its affiliated companies. A sluggish European economy, post-financial crisis fines, costly new regulations and a reluctance to change all hurt its competitiveness. Half of the floor is gone and others are just waiting to be called in. The company fell from fifth to sixth in the global rankings for that business between 2017 and 2018, according to banking research firm Coalition. Deutsche Bank restructuring includes 18,000 job cuts, GameStop's ascent: Reddit traders vs hedge funds, Why NASA calls landing the Mars rover '7 minutes of terror', Trivago CEO's son crashes live CNN interview, Here are some of Budweiser's best Super Bowl ads ever, Why major corporate donors halted funding to GOP, He called CNN after the election to share his biggest fear, Ever receive a package you didn't order? London (CNN Business) Deutsche Bank's $8.3 billion transformation comes with a promise: This time will be different. The US Congress issues subpoenas to Deutsche for documents related to the bank’s dealings with Donald Trump. What happened. When things went south, Deutsche continued to sell toxic products, but … Deutsche Bank floats on the New York Stock Exchange, cementing its position as one of the major players, not just on Wall Street but in global banking. The New York Times reports that senior Deutsche executives blocked employees from alerting the federal government about suspicious activity alerts linked to Trump and Jared Kusher in 2016 and 2017. And they praised it for going further than in the past. The Times report comes after Germany's two largest lenders, Deutsche Bank and Commerzbank, confirmed on Sunday that they were in talks about a merger. And for about decade, it looked as though they’d pulled it off … They’ve been limping along for the last few years and I suppose this day had to come.”, Anke Reingen of Royal Bank of Canada said the restructuring was more radical than expected: “However, as the plan pushes the profitability improvement further out in time on our estimates, we see more value elsewhere in the sector. It subsequently played a large part in developing Germany's industry, as its business model focused on providing finance to industrial customers. :“Bank of the German Realm”) and placed under the direct control of Adolf … Deutsche Bank