This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/2019/may/23/deutsche-bank-shares-slump-further-as-fallout-from-bad-press-continues
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Deutsche Bank shares slump further as fallout from bad press continues | Deutsche Bank shares slump further as fallout from bad press continues |
| (about 1 hour later) | |
| Deutsche Bank shares slid to fresh lows as its boss announced “tough cutbacks” for the investment bank following a fraught year of money laundering allegations, failed merger talks, and lawsuits by Donald Trump. | Deutsche Bank shares slid to fresh lows as its boss announced “tough cutbacks” for the investment bank following a fraught year of money laundering allegations, failed merger talks, and lawsuits by Donald Trump. |
| At a marathon annual shareholders’ meeting in Frankfurt, still going on after eight hours, chief executive Christian Sewing said the bank would push ahead with a further €1bn (£880m) in cost cuts this year, following similar moves in 2018 that led to 6,000 job losses. | |
| Sewing, who has been in the job for just over a year, said Deutsche has already slashed €130bn euros from the investment bank balance sheet. “So I can assure you: we’re prepared to make tough cutbacks,” he said. | Sewing, who has been in the job for just over a year, said Deutsche has already slashed €130bn euros from the investment bank balance sheet. “So I can assure you: we’re prepared to make tough cutbacks,” he said. |
| But Sewing’s optimism failed to buoy Deutsche Bank’s share price, which fell to fresh lows of €6.35 per share. The stock – which hit €107 before the 2008 banking crisis – has lost more than 40% of its value in the past 10 months and is now well below its post-crash lows. | But Sewing’s optimism failed to buoy Deutsche Bank’s share price, which fell to fresh lows of €6.35 per share. The stock – which hit €107 before the 2008 banking crisis – has lost more than 40% of its value in the past 10 months and is now well below its post-crash lows. |
| The banking boss insisted: “No one’s more disappointed with our stock market performance than I am,” and assured he would “work with all my strength to boost our share price”. | |
| It didn’t stop investors from complaining at the AGM, with more than one shareholder lamenting the shares are now worth less than a pack of cigarettes. | It didn’t stop investors from complaining at the AGM, with more than one shareholder lamenting the shares are now worth less than a pack of cigarettes. |
| Deutsche Bank has suffered multiple blows to its reputation over the past year, having failed US bank stress tests, suffered downgrades to its investment grade ratings, and seen merger talks with its smaller German rival Commerzbank collapse. | Deutsche Bank has suffered multiple blows to its reputation over the past year, having failed US bank stress tests, suffered downgrades to its investment grade ratings, and seen merger talks with its smaller German rival Commerzbank collapse. |
| German police also raided Deutsche Bank’s offices in November as part of a money laundering investigation linked to Panama Papers revelations. | German police also raided Deutsche Bank’s offices in November as part of a money laundering investigation linked to Panama Papers revelations. |
| Sewing said the raid made global headlines that were “severely damaging” for the bank. He went on to criticise Frankfurt authorities for the way they handled the investigation. “Even now, months later, we still have no concrete evidence that would support the allegations against us or any of our employees,” he said. | Sewing said the raid made global headlines that were “severely damaging” for the bank. He went on to criticise Frankfurt authorities for the way they handled the investigation. “Even now, months later, we still have no concrete evidence that would support the allegations against us or any of our employees,” he said. |
| “However, the public reaction to the investigations by the public prosecutor’s office has once again demonstrated one point clearly: we must further strengthen our controls.” | “However, the public reaction to the investigations by the public prosecutor’s office has once again demonstrated one point clearly: we must further strengthen our controls.” |
| Deutsche Bank was forced to admit earlier this week that software used to screen customer transactions for money laundering was faulty. It means some potentially suspicious transactions were not flagged to authorities. | Deutsche Bank was forced to admit earlier this week that software used to screen customer transactions for money laundering was faulty. It means some potentially suspicious transactions were not flagged to authorities. |
| That revelation followed a report by the New York Times that said Deutsche Bank executives blocked employees from raising suspicious activity reports on entities controlled by Trump and Jared Kushner between 2016 and 2017. | That revelation followed a report by the New York Times that said Deutsche Bank executives blocked employees from raising suspicious activity reports on entities controlled by Trump and Jared Kushner between 2016 and 2017. |
| Deutsche Bank is also being sued by the US president in an attempt to block the release of documents detailing his personal finances. | Deutsche Bank is also being sued by the US president in an attempt to block the release of documents detailing his personal finances. |
| The maelstrom of bad news means some Deutsche Bank executives are facing a no-confidence vote at its AGM. Influential shareholder advisers ISS and Glass Lewis have urged shareholders to reject reports detailing the work of both the management and supervisory reports in 2018. | The maelstrom of bad news means some Deutsche Bank executives are facing a no-confidence vote at its AGM. Influential shareholder advisers ISS and Glass Lewis have urged shareholders to reject reports detailing the work of both the management and supervisory reports in 2018. |
| However, ISS has recommended rejecting shareholder-submitted resolutions calling for the removal of the bank’s chair Paul Achleitner and no-confidence votes against three management board members. Glass Lewis has called for abstentions in the vote against the chair. | However, ISS has recommended rejecting shareholder-submitted resolutions calling for the removal of the bank’s chair Paul Achleitner and no-confidence votes against three management board members. Glass Lewis has called for abstentions in the vote against the chair. |
| Deutsche Bank | Deutsche Bank |
| European banks | European banks |
| Banking | Banking |
| Europe | Europe |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |