Deutsche Bank, Germany\u2019s largest, reported a net loss of 92 million euros, or about $117 million, compared with a profit of \u20ac51 million in the third quarter of 2013. Profit in the quarter had been expected to suffer after Deutsche Bank said last week that it had set aside an additional \u20ac894 million to cover legal costs.<\/p>\n
The loss provides another reminder that Deutsche Bank and other large investment banks are still preoccupied with addressing the excesses associated with the financial crisis, as well as with increasing demands from regulators intent on curbing risk-taking by banks.<\/p>\n
\u201cIt\u2019s very clear that litigation legacy, coping with all of that, has proven to be more challenging for us and the industry than we would have thought,\u201d Mr. Jain said on a conference call with analysts on Wednesday.<\/p>\n
The bank is facing investigations over its role in the potential manipulation of global benchmark interest rates and inquiries into foreign exchange trading.<\/p>\n
It is also facing lawsuits over mortgage-based securities sold in the US before the financial crisis. \u00a0 Along with money set aside in previous quarters, Deutsche Bank has stockpiled a total of about \u20ac3 billion to cover potential litigation costs.<\/p>\n
Mr. Fitschen and several former bank leaders are also facing criminal charges of colluding to give false testimony in a long-running lawsuit over the collapse of a bank client\u2019s media empire.\u00a0 In addition to legal issues, the chief executives said, headwinds include a slowing European economy and geopolitical risks, a reference to tension with Russia and fighting in the Middle East.<\/p>\n
Deutsche Bank and its peers face increased scrutiny from regulators who are seeking to prevent future financial crises. The ECB\u00a0 has already demanded more information than in the past, prompting many banks to invest in better information technology.<\/p>\n
Deutsche Bank easily passed stress tests carried out by the ECB.\u00a0 They have also actively increased equity. \u00a0 But Deutsche Bank continues to face criticism that it is overly dependent on borrowed money.<\/p>\n
\u00a0 Deutsche Bank, Germany\u2019s largest, reported a net loss of 92 million euros, or about $117 million, compared with a profit of \u20ac51 million in the third quarter of 2013. Profit in the quarter had been expected to suffer after Deutsche … Continue reading ![\"Deutsche](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2014\/10\/Deutsche-Bank.jpg\")
<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"