 "Why people have been worrying about Deutsche Bank")
How do you solve a problem like Deutsche Bank?
Its share price fell to an all-time low last week amid concerns that the bank may lack the capital to service litigation costs and meet stricter regulatory standards. The catalyst for the recent selloff appears to be Chancellor Angela Merkel's comments, reported by Focus magazine, in which she ruled out state assistance for the bank.
Earlier this month Deutsche was hit by a $14-billion US Department of Justice claim to settle the allegedly fraudulent selling and origination of mortgage-backed securities before the financial crisis.
Chief Executive Officer John Cryan has said the lender has no intention of paying a figure of that magnitude, and is redoubling efforts to both cut costs and sell assets. On Wednesday, the bank's shares opened higher for the first time in almost a week after it agreed to sell its UK insurance unit Abbey Life Assurance- a move which will boost the bank's Tier-1 capital ratio by about 10 basis points. Here, we paint a picture of the bank's financial health in a three charts:
Its share price fell to an all-time low last week amid concerns that the bank may lack the capital to service litigation costs and meet stricter regulatory standards. The catalyst for the recent selloff appears to be Chancellor Angela Merkel's comments, reported by Focus magazine, in which she ruled out state assistance for the bank.
Earlier this month Deutsche was hit by a $14-billion US Department of Justice claim to settle the allegedly fraudulent selling and origination of mortgage-backed securities before the financial crisis.
Chief Executive Officer John Cryan has said the lender has no intention of paying a figure of that magnitude, and is redoubling efforts to both cut costs and sell assets. On Wednesday, the bank's shares opened higher for the first time in almost a week after it agreed to sell its UK insurance unit Abbey Life Assurance- a move which will boost the bank's Tier-1 capital ratio by about 10 basis points. Here, we paint a picture of the bank's financial health in a three charts: