Deutsche Bank (DB)

Re: Deutsche Bank (DB)

Postby winston » Tue Oct 04, 2016 7:23 am

A Russian Tragedy: How Deutsche Bank’s “Wiz” Kid Fell to Earth

Mastermind or scapegoat, Tim Wiswell was at the heart of the bank’s $10 billion mirror-trade scandal.

By Liam Vaughan, Jake Rudnitsky, and Ambereen Choudhury

The U.S. Justice Department and the U.K.’s Financial Conduct Authority are investigating whether trades that flowed through Wiswell’s desk violated anti-money-laundering rules.

Wiswell, Head of Equities for Deutsche Bank in Moscow, hasn’t been charged, and both agencies declined to comment.

Deutsche Bank has said it could face penalties relating to the Russian debacle by the end of the year.


A list of scandals that also included probes into rigging interest rates and foreign exchange...


Wiswell’s desk, which never had more than a dozen or so employees, carried out thousands of mirror trades over a four-year period. The mechanism itself was pretty straightforward.

A company would buy securities from Deutsche Bank in Moscow for rubles at the same time as another entity owned by the same people in an offshore place like Cyprus, would sell the same shares for dollars via Deutsche Bank’s London office.

The shares would then be transferred between the entities, completing the circle.

The trades spirited money out of Russia at $10 million to $15 million a clip, according to the report. The end-users of the service weren’t revealed. Mirror trades, which aren’t illegal, can be used to aid money laundering and tax avoidance, or to violate sanctions.


Source: Bloomberg

https://www.bloomberg.com/features/2016 ... 100316_BIZ
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Re: Deutsche Bank (DB)

Postby winston » Tue Oct 04, 2016 8:56 am

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Here's how things could really go wrong for Deutsche Bank

by Jeff Cox

The bank has some valuable tangible assets on its balance sheet — Postbank, Deutsche Bank Asset Management and a stake in China's Huaxia Bank


"We believe that what is occurring is a profitability crisis in global banking, particularly in Europe, as opposed to the balance crisis which occurred during the financial crisis"


Source: CNBC.com

http://www.cnbc.com/2016/10/03/heres-ho ... 284a1255a1
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Re: Deutsche Bank (DB)

Postby winston » Tue Oct 04, 2016 10:37 am

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Is Deutsche Bank insolvent?

By Tim Price

Source: Sovereign Man

http://www.thetradingreport.com/2016/10 ... insolvent/
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Re: Deutsche Bank (DB)

Postby winston » Tue Oct 04, 2016 7:34 pm

Companies Why the Market Lost Trust in Deutsche Bank

By Valentin Schmid

“Deutsche Bank’s accounting interpretations are ridiculous. They have certain assets, loans, and obligations that are backed by collateral. These obligations have counterparties, but they don’t rate the risk of these counterparties, and they don’t adjust the valuation of these transactions,” said Reggie Middleton of Veritaseum.

In practice, this means that some of the companies Deutsche lent money to won’t be able to repay their loans or obligations to the bank, and their inability to pay is not reflected in the current numbers.

If this figure were only 10 percent of their balance sheet, they would lose $180 billion, and all the book equity would be wiped out more than two times over.

The DoJ fine is nothing compared to it.



Source: Epoch Times

http://www.theepochtimes.com/n3/2166407 ... sche-bank/
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Re: Deutsche Bank (DB)

Postby winston » Wed Oct 05, 2016 8:55 am

Warning: These ticking time-bombs may be in your portfolio right now

Source: Daily Crux

http://thecrux.com/warning-these-tickin ... right-now/
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Re: Deutsche Bank (DB)

Postby winston » Thu Oct 06, 2016 7:08 pm

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A look at the share price of Deutsche Bank AG, which is up as much as 25 percent from Friday's low, might give the impression that woes at the German lender are over.

However, the bank still faces legal problems outside the Department of Justice fine - including an indictment for colluding with Banca Monte dei Paschi di Siena SpA to conceal the Italian lender’s losses.

An audit commissioned by Germany's regulator, a copy of which was seen by Bloomberg, shows the bank arranged similar deals with a total value of 10.5 billion euros ($11.8 billion) for 30 clients.

While Deutsche Bank is making strides in cutting its workforce, mounting legal costs remain a source of increasing investor concern.

Source: Bloomberg
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Re: Deutsche Bank (DB)

Postby winston » Thu Oct 06, 2016 8:28 pm

Deutsche Bank’s $14 Billion Scare

by Tom Schoenberg

Deutsche Bank Mismarked 37 Deals Like Paschi’s, Audit Says
Justice officials had envisioned $3 billion mortgage penalty
U.S. added prosecutors and gave RMBS cases a new overseer

With negotiations now taking place out of the spotlight, analysts and others have been evaluating what the possible penalty might be. The bank has set aside 5.5 billion euros ($6.1 billion) for litigation.

A settlement above that amount would leave the German lender no room to settle other legal issues without increasing capital, JPMorgan analysts have written.

Bloomberg Intelligence placed the likely RMBS pact in the $4 billion to $8 billion range based on earlier such bank settlements, but said a final deal amount may be higher given the Justice Department’s $14 billion opening demand.


Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... ted-in-u-s
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Re: Deutsche Bank (DB)

Postby winston » Thu Oct 06, 2016 8:33 pm

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Deutsche Bank Mismarked 37 Deals Like Paschi’s, Audit Says

by Donal Griffin

Bafin-commissoned review says Fed subpoena sparked scrutiny
German lender changed accounting for transactions in 2013

Deutsche Bank AG, indicted for colluding with Banca Monte dei Paschi di Siena SpA to conceal the Italian lender’s losses, mismarked the transaction and dozens of others on its own books, according to an audit commissioned by Germany’s regulator.

Executives at Deutsche Bank arranged 103 similar deals with a total value of 10.5 billion euros ($11.8 billion) for 30 clients,


Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... audit-says
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Re: Deutsche Bank (DB)

Postby winston » Thu Oct 06, 2016 8:43 pm

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Deutsche may not face German penalty over Russian trades: sources

By Arno Schuetze and Kathrin Jones

Germany's financial watchdog has found no evidence to date that Deutsche Bank (DBKGn.DE) violated money laundering rules in Russia, people close to matter said on Thursday, possibly relieving one headache for the country's biggest bank.

Even if Bafin, which oversees Deutsche Bank in its home market, does give the bank the all-clear over its Russian business, regulators in Russia, Europe and the United States are also investigating it over so-called "mirror trades".


These may have allowed clients to move money from one country to another in 2014 without alerting authorities, potentially enabling them to breach Western sanctions on Russia over the Ukraine conflict.


Source: Reuters

http://www.reuters.com/article/us-germa ... the%20Bell
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Re: Deutsche Bank (DB)

Postby winston » Fri Oct 07, 2016 8:05 pm

Exclusive: Qatar won't sell Deutsche Bank shares, might buy more - sources

By Tom Finn and Kathrin Jones

Qatari investors who own the largest stake in Deutsche Bank, do not plan to sell their shares and could consider buying more if the embattled German bank decides to raise capital, sources familiar with Qatari investment policy told Reuters.

Funds controlled by Qatar's former Prime Minister Sheikh Hamad bin Jassim al-Thani bought 6.1 percent of Deutsche in mid-2014 and increased their stake to just under 10 percent, including options, in July this year.

Deutsche shares plunged to record intra-day lows below 10 euros last week on Friday and although they have since rebounded to just above 12 euros, they are 13 percent below last month's peak and 46 percent below their close at the end of last year.

That implies the Qataris may have lost, on paper, over $1.2 billion on their investments in the bank.

"Purchasing more stock - that could be considered ... which is not to say there are any imminent plans to do that," said the source, declining to be named as the matter is confidential.

A second source said the Qataris had no intention of selling out. "This is a long-term investment. Qatar believes it will all work out well for the bank in the end."

If a capital hike does turn out to be required, "they would probably take part in it as they want to keep their roughly 10 percent stake. But they want to stay below the 10 percent threshold" for regulatory reasons, the source added.

Source: Reuters

http://www.reuters.com/article/us-germa ... ls%20Today
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