Why people have been worrying about Deutsche Bank

Why people have been worrying about Deutsche Bank
Bloomberg
Last Updated : Oct 03 2016 | 1:24 AM IST
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:

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Oct 03 2016 | 12:07 AM IST

Next Story