Tags: deutsche bank | justice department | deal | shares

Deutsche Bank Fails to Score Justice Department Deal, Shares Fall

Deutsche Bank Fails to Score Justice Department Deal, Shares Fall

Monday, 10 October 2016 10:41 AM

 

Deutsche Bank shares fell more than 3 percent on Monday after Chief Executive John Cryan failed to secure a speedy deal with the U.S. Department of Justice (DoJ) over the weekend over the misselling of mortgage-backed securities.


Cryan was attending the International Monetary Fund and World Bank's autumn meetings in Washington, raising hopes that he might personally negotiate down the $14 billion fine the DoJ has demanded.
 

"One had hoped that a quick agreement was possible," a German trader said.
 

Deutsche Bank shares had pared losses but were still at the bottom of a flat German blue-chip index, down 3 percent at 11.74 euros.
 

"They had a bit of a bounce up last week, but I would still steer clear of Deutsche Bank," said Terry Torrison, managing director at Monaco-based McLaren Securities.
 

"They were never going to sort out the U.S. issues that quickly, and whatever happens, I still think they will need to have a rights issue."
 

Deutsche Bank is expected to issue new shares, sell assets, or both, once it knows the scale of the fine, to ensure that its capital ratio remains within regulatory limits.

It is struggling to restore market confidence, which took a blow when the $14 billion figure was leaked but which was already low as investors questioned whether Cryan had a credible plan to revamp the bank.

 

© 2019 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Companies
Deutsche Bank shares fell more than 3 percent on Monday after Chief Executive John Cryan failed to secure a speedy deal with the U.S. Department of Justice (DoJ) over the weekend over the misselling of mortgage-backed securities.
deutsche bank, justice department, deal, shares
224
2016-41-10
Monday, 10 October 2016 10:41 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved