Wall Street lead over EU banks looks set in stone

June 17, 2015

European trading and advisory revenue is down 30 pct since 2010 while U.S. investment banking has grown. Now Deutsche Bank and HSBC are cutting further, even more ground will be ceded. The region’s tentative recovery and capital markets project offer only slim hope of a reversal.

UK taxpayers hurt more by EU split than HSBC exit

May 19, 2015

Deutsche Bank and its rivals could move operations out of London if Britons vote to leave the EU. That would dent the main source of UK tax from the financial sector - income tax on bankers. It’s a bigger loss than reduced bank levy receipts from HSBC moving its head office.

Deutsche’s attitude problem compounds Libor hit

April 23, 2015

The German bank is paying a record $2.5 bln to settle rate-rigging charges. To make things worse Deutsche Bank misled the UK regulator and others. That’s not smart in a highly regulated industry. With a currency market fine also pending, the reputational damage could grow.

Deutsche Bank’s long round trip

By Edward Hadas
March 25, 2015

The German bank spent two decades expanding massively into the capital markets business. Along the way, it lost touch with its original mission of serving German businesses and their owners, without finding a viable new one. The crisis has spurred a return to traditional values.

IPO exuberance ensnares Deutsche, Wells Fargo

August 14, 2014

The two banks nixed a biotech deal six days after it started trading. Their reasoning looks defensible – an insider reneged on buying a big chunk of shares. But the Wall Street firms’ willingness to sell the stock in the first place smacks of a return of top-of-the-market laxity.

“New Deutsche” just got pushed back again

July 23, 2014

The German investment bank is under fire from U.S. regulators for poor-quality financial reporting. In recent months Deutsche Bank has raised capital and revamped strategy – but that’s the easy part. Making investors believe culture has genuinely changed will take much longer.

Banks swap rewards for risk on public deals

April 9, 2014

Deutsche Bank and UBS are now loath to offer long-dated swaps to municipalities. New capital rules make the business less attractive. But after legal tussles and bad publicity in Milan and Detroit, bankers are turning away business on grounds of reputational risk.

Investment bankers complete Deutsche Bank takeover

March 8, 2012

The latest management reshuffle at the German-based group has elevated several investment bank executives. That’s partly new co-CEO Anshu Jain picking his own team. But it’s also confirmation that, despite the crisis, trading and risk management nous are still crucial.

Pharma saga shows bad lending’s long half-life

April 27, 2012

Singlehandedly funding the 2007 buyout of Actavis, an Icelandic drugmaker, was one of Deutsche Bank’s worst boom-era moves. Failed M&A rescues, restructuring and $1.7 bln of charges followed. At least Watson Pharma is now ending this unhappy saga with a near-$6 bln takeover.

Investment banking job cull is long overdue

July 23, 2012

Faced with slumping income and tough regulation, the industry is bracing for another round of cuts. That won’t be easy: to make savings, banks will have to ditch business lines or redesign structures. But with shareholders antsy and no rebound in sight, they have little choice.