Deutsche Bank brings in Zames to help right the ship

Deutsche Bank — in a broadening effort to keep the lights on in its US operations — has agreed to work with NY-based private equity firm Cerberus Capital Management to explore options as a paid advisor.

Cerberus President Matt Zames — once considered by Deutsche to be on short list to replace ex-CEO Jon Cryon and is formerly a C-Suite executive from JPMorgan — is leading the project.

Cerberus holds roughly a 3% stake in Deutsche and a 5% stake in rival German bank Commerzbank. Talk was earlier this year that the two firms should form an alliance since their core businesses have differing strengths. DB on the corporate side and Commerzbank on the retail side in Germany.

New CEO Christian Sewing is struggling to find a palatable solution to the free fall stock price while not retreating from the US.

While neither party is talking merger at this time, Cerberus could push the boards together since PE firms usually have a shorter investment timeline to turn a profit. Shares of Deutsche are off 40% over the last 12 months and is trading at $11.54 here in the US.

 

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JPM’s Dimon eyeing Deutsche with Chinese cash

Is Jamie Dimon looking to goose-step into Frankfurt and take over troubled Deutsche Bank using Chinese money?

That appears to be to the story coming out of Germany as Deutsche’s stock spikes more than 6% in European trading on the news.

JPMorgan and Industrial and Commercial Bank of China are looking to take a stake — size unknown –to bolster the troubled bank, the report from the business weekly WirtschaftsWoche said.

WIWO also reported that German Chancellor Angela Merkel had met Axel Weber, the former Bundesbank head who is now chairman of Swiss bank UBS, to discuss his thoughts on Deutsche Bank.

Newly installed CEO Christian Sewing has not given the market any confidence in his ability to turn around the much maligned institution, which has paid nearly $500 billion in penalties and fines to global regulators for its bad banking actions over the last decade.

Sewing is also seen as an impediment to change since he made his bones at the bank during this troubling time as I have written before.

Before the summer ends something will happen with Deutsche Bank. Whether that’s a merger with fellow-troubled German firm Commerzbank or a bailout through cash injections from EU this bank right now is on the ropes and getting pummelled.

Deutsche’s stress-ful day, Hillary campaign worker busted for child porn

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Deutsche Bank will be in the news again Thursday afternoon as the results of the second part of the Federal Reserve stress tests are released.

Last week the German uber bank did fairly well in demonstrating it had sufficient capital to absorb losses if a deep recession occurred.

This week’s results probe whether the banks’ operations and planning are up to the task of dealing with a deep recession.

Should Deutsche fail the so-called qualitative part of the stress tests, then the Fed can limit how much cash the US operations can ship back to the fatherland. This could put Deutsche in a liquidity bind back home as the German economy is slowing down.

Deutsche’s new CEO Christian Sewing — who I have pointed out previously whitewashed an internal probe at the bank looking into a spate of executive suicides, which coincided with the Libor investigation —  is at best ill-equipped to handle the problems plaguing the bank’s US operations.

We’ll see at 4:30 today.


Alleged pedophile and child porn distributor Joel Davis (left) seen in Hillary Clinton’s New York City 2106 Presidential campaign headquarters.

A humanitarian allegedly helping child victims of sexual violence has been arrested for distributing child pornography, by federal prosecutors in New York.

“Joel Davis started an organization devoted to stopping sexual violence, while allegedly engaged in the duplicitous behavior of sharing explicit images of infants engaged in sexual activity. Davis also allegedly solicited an undercover officer – whom he thought to be a willing participant – to send sexually explicit videos of his nine-year-old daughter, and even to set up a sexual encounter between himself and a two-year-old. The conduct alleged against Joel Davis is as unfathomable as it is sickening, and as this case demonstrates, law enforcement will keep its watchful eye on the darkest corners of the internet to bring predators to justice.”

“During the course of these conversations, DAVIS told the undercover officers that he was sexually interested in children of all ages.  DAVIS sent the undercover officers sexually explicit photographs of infants and toddlers, including photographs in which the infants and toddlers were engaged in sexual activity with adults,”

 

According to the US Attorney’s Office for the Southern District of New York, U.S. Attorney Geoffrey S. Berman

These depraved acts had federal law enforcement and prosecutors “sickened” by the hypocrisy of the organization.

‘Having started an organization that pushed for the end of sexual violence, Davis displayed the highest degree of hypocrisy by his alleged attempts to sexually exploit multiple minors,’ FBI Assistant Director-in-Charge William F. Sweeney Jr. said.

‘As if this wasn’t repulsive enough, Davis allegedly possessed and distributed utterly explicit images of innocent infants and toddlers being sexually abused by adults.’

Images have also surfaced of the 22-year-old Davis working on the 2016 Hillary Clinton presidential campaign.

One more pervert down, millions still to go.

Deutsche Bank retreats to Europe, can’t overcome reputational hit from 2007

Deutsche Bank is in full retreat from Wall Street.

The troubled German bank says it will cutback its US operations, including trading and corporate finance operations globally as it focuses on its home market. The announcement came after the bank reported yet another quarterly losses tied to reduction in trading profits.

New CEO Christian Sewing — which I pointed out here and here led an investigation into the multiple executive suicides from a decade ago — said headcount will see a “significant reduction” in the 97,130-person workforce. Continue reading

DB’s new CEO is throwback to corrupt Jain era

A little over a year ago I wrote about Christian Sewing and how he would be the future Deutsche Bank CEO.

As many of you know I have been looking at DB for many years and have detailed its corrupt executives cover ups and perhaps illegal actions just prior to the breaking of Libor scandal. Continue reading