The share of Deutsche Bank scribbled yesterday, today, the share of 2 to 3 percent higher. Investors seem to be after all the excitement of the beginning of this week, somewhat reassured, after the soothing words of the German government and the ceo of the bank.
Monday plunged the price down, after a message over the weekend in the German online magazine Focus. Chancellor Merkel would be against chief executive John Cryan Deutsche Bank have said that they do not plan Deutsche Bank to help to shoot in the legal battle with the American justice system. And the bank does in the coming election year will also not have to rely on state aid.
Contingency plan
Even though it looks like the storm again to lie down, it is still the rumble and restless around the bank. The British officer John Cryan repeated today in the German newspaper Bild that the bank does not require state aid, and also not to has asked.
According to another German newspaper, die Zeit, the German government behind the scenes, however, work on a kind of contingency plan if the bank by its having pockets. Of noodgaranties in the sale of business units, to a partial nationalization of the largest bank of Germany.
On the other hand, after the banking crisis, a European mechanism and a fund established to prevent the taxpayers, pay for a bank in trouble. Banks, investors and shareholders need to save, not the citizens.
the Support of Merkel to Deutsche Bank is in election time, as well as unmarketable, unless not support the collapse of the financial system would lead.
Curtains
The combination of all of the problems that Deutsche Bank is struggling and the word aid in hunting investors in the curtains. In the past year is that already several times happened. The share price has since January now zig-zagging is reduced by half. The fear of the shareholders that they will pay for the problems and fines to pay with new shares.
Investors are worried about the capital buffers of the bank. The low interest rate nibbling at the margins, the credit demand remains behind, while the fines pile up. Manipulation with the Libor interest rate and the gold price, hypotheekzwendel in the United States, money laundering in Russia and violating trade sanctions with Iran and Syria, and Deutsche Bank have all made this mistake.
Since 2008, the bank had been 8 billion euros in fines lost and there is still a U.s. settlement proposal of € 13 billion on the mat. The fines amount to almost the same as the current market value of the bank, namely 14.6 billion euros.
Rabobank
Calculated today announces the bank that the insurance business Abbey Life sold for 1.1 billion euro. With that money, the capital position strengthened, assures chairman Cryan.
Deutsche Bank is still the largest bank in Germany and Europe, but was once one of the largest banks in the world. It is the iconic bank of the German 'economic miracle', the bank that was like a house, a institute. In the late 90s the bank developed into a major merchant bank.
Intact, came Deutsche through the financial crisis without help or support. But after the crisis, when the smoke pulled away, turned out there wrong and to the hand. In that respect, Deutsche Bank is way of the Rabobank. Also, this bank survived the financial crisis but then started to suffer from fines for interest rate and derivatives scandals and changes at the top.
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