Cardinal Trading: Germany’s largest lender, Deutsche Bank, saw its costs related to legal investigations push it into a 3rd quarter loss.
According to Cardinal Trading, Deutsche Bank, Germany’s largest lender and one of the world’s biggest banks, has posted a €92 million loss for the 3rd quarter of the year as it continues to set aside funds to settle legal costs related to a range of investigations into its wrongdoings. The loss compares to a profit of €51 million in the same period last year.
The bank’s transgressions include its alleged role in the manipulation of the global benchmark interest rate, LIBOR (London Interbank Offered Rate) and a probe into whether its traders conspired to manipulate the $5 trillion-a-day foreign exchange market.
“As if these ongoing investigations weren’t enough, US regulators are looking into evidence of the bank’s mis-selling of mortgage-backed securities (MBS) and that it did business with countries like Iran despite their being sanctioned by the US and the broader international community,” said Johannes Feinberg, chief economist at Cardinal Trading.
The bank set aside €894 million this quarter alone to cover its legal costs and is set to repeat the exercise in the final quarter of the year. It is making efforts to reduce the impact of future provisions by shuffling the incumbent chief financial officer, Stefan Krause into a new role as head of strategy with responsibility for oversight of the bank’s cost-cutting program.
Cardinal Trading says it sees light at the end of the tunnel for Deutsche Bank’s legal woes but warns that with the inexorable decline in Europe’s economic fortunes, a turnaround is “some way off” and advised clients to wait for further dips on the Frankfurt exchange before taking positions.
About Cardinal Trading:
Cardinal Trading is highly respected for its commitment to providing exceptional investment counseling services to international clients.
We have been enabling individuals to take control of their investments and finances since 2006 and our team of Personal Investment Advisers, together with the dedicated client administration personnel that support them, adhere to the stringent standards as set down by financial regulators and industry bodies.
Our desire to remain independent means that we labor under no obligation to any one financial institution or investment product provider. This cherished independent status means that we are at liberty to select only the products and make the recommendations that are most likely to culminate in the realization of your investment goals.
Contact Cardinal Trading:
Tokyo Ginza Shiseido Building,
Level 6, 8-8-3 Ginza,