Systemic banks tracker: Deutsche Bank
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Edvard Munch's “Separation” (1896) |
Deutsche Bank settles dispute with regulators (Canada)
By
Barbara Shecter, Financial Post February 9, 2013
Deutsche
Bank Securities Ltd. has agreed to pay a $1-million fine to settle with
regulators over its involvement in the 2007 freeze in Canada's market for
asset-backed commercial paper.
In a settlement Deutsche
Bank reached with Canada's investment industry regulator on Friday, the bank
admitted that in late July and early August 2007 it failed to
"engage" its compliance department with emerging issues in the ABCP
market.
Bank Regulation May Hit Deutsche Bank Harder
Than Expected
By
Madeleine Nissen, WSJ Blog
Germany’s plans for
tighter financial market regulations is likely to hit Deutsche Bank harder than
once expected. That’s because the legislation, which will require big banks to
separate retail and investment activities, will be especially stringent when it
comes to hedge fund business, where Deutsche Bank is a significant player.
Berlin’s proposal,
coordinated with France, is part of a broader push within the European Union to
ring-fence banks’ high-risk activities, and force institutions to hold more
capital to shield taxpayers from future bank bailouts. But Germany’s proposal
appears to be the most far-reaching so far, with France’s plans, for example,
requiring only a separation of the unsecured business of hedge funds.
A separation would carry significant costs for the bank, hardly welcome
news for Deutsche Bank, which is already struggling with high costs and
targeting drastic savings in consideration of high capital requirements. Under
the leadership of Anshu Jain and
Juergen Fitschen, it wants to become much more efficient and profitable, which
includes cutting bonuses and jobs.
At the same time, the billions in costs for law suits now weigh heavily
on Deutsche Bank’s balance sheet, making it difficult for leadership to
highlight any savings achievements. Deutsche Bank itself has said it expects
high costs for separating its high-risk businesses, and that this means costs
for customers would also likely increase.
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