Deutsche Bank is nearing a settlement with the u.s. government, at 5.4 billion dollars, informs a source of the prestigious news agency AFP.
if so, This will be a significantly lower sum than the original claim of 14 billion dollars, but is more in line with other fines related to the banks ‘ boliglånspraksis before the financial crisis.
the Messages if the original requirement has given great concern about the situation in the Deutsche Bank, which has infected the global financial sector.
Deutsche Bank share price rises significantly in the message, and is writing this up over 14 per cent in New York.
Several international media writes that Deutsche does not want to comment on the new information.
Unrest
It is now two weeks since it became known that the united STATES demanded 14 billion dollars by the Deutsche Bank. Three years before the financial crisis to storbanken have stated that boliglånsrelaterte products they sold meant little risk, which proved to not vote in the most dramatic fashion.
The current financial products consisted of bad mortgages, which were packaged together in so-called credit derivatives.
This is a practice Deutsche was not alone. The fine that was outlined in the German case, however, was higher than settlements entered into by, for example, Goldman Sachs (5,06 billion dollars) and Citigroup (7 billion dollars) in the same proceedings.
the Size of the requirement created concern about Deutsche Bank’s financial position and fear that storbanken would have to retrieve the billions in krisekapital. The bank’s provisions for such purposes must have been around four billion dollars.
Attempted to reassure the
Due to its central, integrated position in the financial markets has Deutsche-problems sent waves into the global financial sector. In yesterday’s trading, weighed it finansaksjene on Wall Street after the messages about incipient kundeflukt.
Deutsche-problems may also have been a contributing cause to the current kursfall in the DNB (which in addition was downgraded by Nordea).
chief executive officer John Cryan in the Deutsche Bank was recently out, and in an unconventional manoeuvre, he emphasized through the brevs form the bank’s solvency.
– You will have seen speculation in the media that a couple of our hedgefondklienter has reduced its activity with us. This leads to unfounded concerns. We need to look at this in the bigger picture: That the Deutsche Bank has over 20 million customers, wrote Cryan, and listed further up the arguments for that bnaken is solid.
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