Shares of troubled Deutsche Bank were down 6% in early European trading as the bank’s CEO John Cryan announced a $8.5 billion capital raise through new shares.
This is the fourth time the German bank has gone to the markets since 2010, raising $30 billion, while diluting the stock price each time. Shares are down 72% over that time period.
German media reports say Cryan, who came on board in 2015 may be looking for his own exit package. However the former UBS executive has said he stands behind the bank and will see the reorganization through.
“I am not weary of Deutsche Bank. I said yesterday I am 150 percent in and I am around to see this reversal,” confirmed the CEO.
Cryan also said Deutsche will fold in its PostBank operations, since it cannot get a reasonable price for the German consumer operator.
None of this comes as any surprise to readers of this blog. I have been writing about the cesspool that is Deutsche Bank for more than 7 years and have documented how the bank to care of whistleblowers within the bank’s ranks as well as those in deals with the bank.
To say this is a worthy institution, which should be saved, is a gross distortion of the truth. Just look at the fines and penalties the bank has paid out to regulators worldwide in the last 5 years.
It totals very close to the $30 billion taken out of shareholders pockets through dilutive share issuance. If you owned shares over the last decade you have seen 75% of that wealth dissipated, while the bank continued its questionable operations under three different leadership team.