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.


Curious Trump banking connection

There seems to a curious connection that I would like to point out.

The reason behind it is open to speculation, which I don’t generally write about.

The connection is between Deutsche Bank and Donald Trump. Deutsche for the last decade or so has been one of Trump’s main lenders.

Deutsche holds more than $350M on mortgages to Trump’s trophy properties: Miami’s Doral National golf course, Chicago’s Trump International Hotel and Tower, and the newly opened Trump International Hotel in Washington, DC, a few blocks from the White House.

Deutsche and Trump have been doing these deals since US banks shied away from Trump since his earlier bankruptcies in the early part of this century.

In a growing sign that all is not well with European banks and German banks in particular, Commerzbank on Thursday said it would cut nearly 10,000 jobs or more than a 20 percent of its workforce and stop paying dividends as it goes through restructuring.

Germany’s second biggest lender said in a statement it expected restructuring costs of $1.2 billion as it combines business segments and cuts costs to offset the drag from low loan demand and negative European Central Bank interest rates and as it shifts to digital banking.

The news come on the heels of German Chancellor Angela Merkel saying that the government will not offer a bail out to Deutsche.

The Commerzbank revamp will come at a heavy cost for employees as Commerzbank slashes 9,600 of its 45,000 full-time positions, a more drastic reduction than at Deutsche, which is cutting about 10 percent of staff but has suggested deeper cost cutting may be needed.