Deutsche Bank is a big domino

[pmbug]

S&P Global Ratings says DB is BBB+/A-2. All is well. Do not panic.

https://www.cnbc.com/2019/12/17/sp-...ly-progress-in-deutsche-bank-restructure.html

I presume that if they downgraded their ratings, it would exacerbate DB's problems and probably start a spiral of market forces that crush DB. "Independent rating agency" doesn't mean much when they know that their opinions will move markets rather than just inform about them.

 

[pmbug]

Deutsche Bank (DBKGn.DE) staff on Wednesday are to receive letters with their bonuses for 2019, a pool that is down 20% from a year earlier, two people with knowledge of the matter said.

Employees had been expecting smaller bonuses after the bank plunged to a bigger-than-expected loss of 5.7 billion euros (5 billion pounds) last year, its fifth in a row, as the cost of its latest turnaround attempt hit earnings.

In January, the bank announced that management board members had decided to halve their own bonuses.

The 20% reduction from 1.9 billion euros for 2018 is partly due to a smaller number of employees after downsizing.
...

https://www.reuters.com/article/uk-deutsche-bank-bonus-idUKKBN20R1FR

Not dead yet.

 

[pmbug]

Deutsche Bank’s (DBKGn.DE) chairman Paul Achleitner said he intends to step down as chairman of the German lender when his term ends in 2022.

His announcement, made to shareholders at the bank’s annual general meeting on Wednesday, was the first time that he has publicly said that he would not seek a third five-year term.

Achleitner has come under criticism from some Deutsche Bank shareholders for the bank’s losses, strategy and management upheaval.
...
Separately, Deutsche’s chief executive Christian Sewing dismissed shareholder concerns the bank would need state aid to cope with the fallout from the coronavirus outbreak and said the bank needed to become more profitable before taking a leading role in European banking consolidation.
...
The bank, which is undergoing a major overhaul after five years of losses, is cutting 18,000 jobs. Last year, it abandoned talks to merge with rival Commerzbank (CBKG.DE).

“We must be more profitable than today if we want to play a leading role in European consolidation,” Sewing said. “We are preparing for consolidation.”

https://www.reuters.com/article/us-...-chairman-to-stand-down-in-2022-idUSKBN22W1E1

"European consolidation" was mentioned a few times. What does that mean exactly? Are European banks expected to merge into a few TBTF behemoths?

 

[pmbug]

Is Deutsche Bank's exile to commercial bank purgatory finally over?

After a dismal stretch for the bank which started in 2014, cost two CEOs their jobs, brought the bank to the verge of nationalization in 2016, sparked an exodus of employees and saw the stock price crumble to levels that became watercooler jokes, the largest German Bank closed out a bumper year for trading with a result that put most of its Wall Street peers to shame while handing CEO Christian Sewing the first annual profit in six years ...

Deutsche Bank Posts First Annual Profit Since 2014 | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[searcher]

Gambled away in the financial crisis - The Deutsche Bank story | DW Documentary​

May 2, 2024 #documentary #dwdocumentary #finance

Deutsche Bank managers driven by greed set it on the wrong track in the 2000s. The collapse played a key role in the financial crisis of 2007/2008. The consequences: billions of Euros in penalties and the decline of a German institution.

The Deutsche Bank, once the flagship of the German economy, had fallen from grace. In the 2000s, the bank was pumped full of risk in the quest for ever greater profits. In their bid to make the institution a global player, Deutsche Bank managers gave their investment bankers a free hand - a move that would end up being a major contributing factor in the financial crisis of 2007/2008. Supervisory authorities are still imposing fines to this day, penalties that now run into the tens of billions.

The victims in all of this are Deutsche Bank customers and shareholders. The share price is hovering around 10 Euros. Twenty years ago, it was around 60 Euros. The documentary shows: The only ones to walk away from this with a good deal were the investment bankers. Many received millions in bonuses year after year, as their greed increased and they paid no heed to the rules and regulations.


42:25

 

[Voodoo]

They ain't done yet... soon though. And please, I don't need to watch that to know what the spin is from the producers.