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

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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

Cryan didn’t know what he was getting into at Deutsche

As many of you who have followed this blog for a time know, Deutsche Bank is a troubled bank that I have written about for the last four years.

Its culture has been one of fraud and corruption that I believe led to murder in three instances.

Into this fray entered CEO John Cryan in 2015. I don’t believe Cryan knew the full extent of what he was getting into. The bank’s culture was one of running operations that bordered on the criminal and crossed that line on many occasions.

Just prior to the Libor scandal breaking wide open, a Deutsche top-tier executive who was in charge of risk was found hanged in his London home.

In New York City a managing director, who worked with the Securities and Exchange Commission to keep the bank out of hot water, was found hanged in his house in Brooklyn.

I believe these executives were whistleblowers on Deutsche’s activities in cheating Libor to make higher profits. To that end they were sidelined.

Deutsche has paid more than $3.5 billion in fines and penalties to settle US, British and EU probes into Libor manipulation since Cryan has taken the helm.

It’s no surprise that Deutsche is the only global banking firm not to see a stock price rebound after the financial crises of 2008. The Street knows its recent pedigree and is staying far away from investing in the troubled bank.

Cryan should have known that when he was going in. I’m sure he is well aware of it now.

Deutsche Bank executive woes continue

Deutsche Bank announced over the weekend that its top C-Suite executives would not be getting a bonus again this year.

CEO John Cryan strangely made the announcement Friday night at Austin’s South By Southwest conference, stating that for the third consecutive year top execs would forego year end payouts as the bank struggles to pull itself out of the mire of questionable trading practices.

As many of you may know I wrote extensively three years ago about the rash of suicides within the bank just as the Libor scandal was breaking.

The German uber bank did note that bonuses for other employees would total just over $2B for 2017.

The news comes as the 10-year anniversary of Bear Stearns’ demise hits Thursday, which led to the Great Recession. On March 14th 2008, the Federal Reserve agreed to provide a $25B loan to keep the bank solvent for 28 days as they unwound Jimmy Cayne’s troubled bank.

As the Fed dug deeper into Bear’s books that offer was pulled a day later and on the 16th of March, JPM CEO found the pot gold scooping up Bear for seven cents on the dollar with a $2 a share offer.

Dimon also made sure that nothing on the troubled bank’s books could come back and bite him with Fed chief Ben Bernanke assuring Dimon the Fed would take the hit as it put up $29B and JPM invested $1B for the sale.

In the following week a Bear shareholder lawsuit was filed and JPMorgan raised its offer price from $2 a share to $10 a share to quell the suit. As a point of contrast Bear Stearns stock was trading at $93 a share in late February 2008.

Deutsche, Barclays suffering under dark clouds

I have been following Deutsche Bank and Barclays as bellwethers for the troubled uber banks as global interest rates begin to climb.

I have written much about Deutsche Bank’s troubles with Libor manipulation and the strange circumstances of key executives allegedly taking their own lives.

Well, now I see that Barclays has its own strange circumstances for the bank’s Libor executives final demise. More on this in the future.

Over the last year, DB shares are down -21%, while Barclays is down only 3 percent over the same time frame. But Barclays shares followed DB’s downward trend line until very recently.

Barclays CEO Jes Staley had his pay in 2017 cut by 8.5 percent to $5.39 million, the bank reported Thursday morning. We have not seen DB’s Jon Cryon’s compensation package for 2017.

Staley’s 2016 bonus is still under pending the outcome of the Financial Conduct Authority (FCA) probe into his handling of the whistleblower incident.I am looking into whether one of the strange deaths is connected to this action.

Allegedly Staley ran his own investigation in order to identify the whistleblower.

I’ll be keeping an eye on these two banks to see. But I believe one or both could be this year’s Lehman Bros.