Deutsche Bank chased away from US, threatened with more fines

Davos, Switzerland, 20/1/2016 - Christine Lagarde, Managing Director, International Monetary Fund (IMF) and John Cryan, Chief Executive Officer, Deutsche Bank, captured during the session 'The Transformation of Finance' at the Annual Meeting 2016 of the World Economic Forum in Davos, Switzerland, January 20, 2016. IMF has labeled Deutsche Bank as a major risk to the global financial system. (WORLD ECONOMIC FORUM/swiss-image.ch/Photo Remy Steinegger. No changes made. Only some rights reserved).

The US Department of Justice settled its claims against Deutsche Bank, the biggest German lender, for packaging and selling toxic mortgage securities to uninformed customers prior to the 2008-2010 financial crisis. Initially, the Justice Department had asked for $14 billion, but it seems it settled for a fine of $7.2bn. However, this is not the […]

No end to Deutsche Bank’s problems: new litigations in the US and frailty in EU stress test

Deutsche Bank Towers – Walkway from Tower A to Tower B. Headquarters in Frankfurt am Main. (Deutsche Bank Audiovisual Services, August 6, 2015).

Last Wednesday, Deutsche Bank’s shares fell by 4.5% in the first hour of trading in Frankfurt, after the bank released its second quarter results, showing a measly profit of €20 million, in comparison to €818 million last year. The percentage fall of this stock is the biggest ever in such a brief time in the […]

Deutsche Bank: the next financial crisis is here and the lenders need €150 billion from taxpayers

Deutsche Bank Towers – View of the entrance. Headquarters in Frankfurt am Main. (Deutsche Bank Audiovisual Services).

Last Monday David Folkerts-Landau, the chief economist of Deutsche Bank, the ailing largest lender of Germany, in an interview with the prestigious newspaper ‘Die Welt’ stated that European banks must be subsidized with €150 billion in rescue money to recapitalize. Obviously, it will be the taxpayers to once more provide the capital the euro area […]

Brexit casts a shadow over the LSE – Deutsche Börse merger: a tracer of how or if brexit is to be implemented

Deutsche Börse. The main building in Frankfurt am Main. No need to say that last week the London Stock Exchange Group plc (LSEG) shareholders approved the merger with the German bourse with the astonishing 99.98%. It is clear that, after 23 June, London begs for the merger. (Deutsche Börse Audiovisual Services).

One of the most direct and important consequences of the Brexit vote is the uncertainty it casts on the merger of Europe’s largest stock exchanges and clearing houses, the London Stock Exchange and the German bourse in Frankfurt, the Deutsche Börse. The two mammoth institutions, the double sun of Europe’s financial universe, last March agreed […]

Deutsche Bank slammed by the US-based trio of IMF, Fed and Moody’s

Deutsche Bank. Overview of the trading floor in Frankfurt am Main, Germany. (Deutsche Bank audiovisual Services).

Last Thursday morning the International Monetary Fund and the American central bank, the Fed, simultaneously but in the face of it independently, issued warnings about the health of the largest German lender, the long ailing Deutsche Bank. A few days before that the US rating agency Moody’s had degraded the creditworthiness of the bank close […]

What have the banks done to the markets making them unable to bear cheap oil?

Members of the European Parliament make a visit to the stock exchange in Shanghai, China. ( ©European Union EP/PE ).

Last Tuesday, a new steep fall of the price of crude oil by almost 5%, triggered another selloff in all the major capital markets of the world. The New York and the European stock exchanges lost anything between 2% and 3% of their capitalization. One may observe that this development is one of many of […]

The EU Commission implicates major banks in cartel cases, threatens with devastating fines

Joaquín Almunia, Vice-President of the EC in charge of Competition, gave a press conference on Statement of Objections of the EC to Crédit Agricole, HSBC and JPMorgan for suspected participation in euro interest rate derivatives cartel. (EC Audiovisual Services, 20/05/2014).

Three major international banking firms Crédit Agricole, HSBC and JPMorgan Chase came yesterday again under the watchful eye of the European Commission, for their role in financial sector cartels (interest rates and derivatives denominated in euro). It’s about financial products based on the Euribor (euro interbank offered rate), an interest rate benchmark. This interest rate […]

Is it impossible to place the banks under control?

Michel Barnier, Member of the EC in charge of Internal Market and Services (on the right), and Erkki Liikanen, Governor of the Bank of Finland, Member of the Governing Council of the European Central Bank and Chairman of the High-level Expert Group on structural aspects of the EU banking sector, gave a joint press conference to present the main findings of the Group. Here the Commissioner looks like trying to overshadow the central banker. (EC Audiovisual services, 02/10/2012).

Within the next few weeks the European Commission is expected to announce a proposal for a structural reform in the banking sector. The declared target is to make sure “that banks do not remain or become too-big, too-complex or too-interconnected to fail”. In announcing its intentions on this grandiose plan, the EU’s executive arm states […]

Commission offers discount on fines to banks for competition infringements

Press conference by Joaquín Almunia, Vice President of the EC in charge of Competition on cartel decisions. Almunia shows with both his hands how he fought the beasts of cartel. (EC Audiovisual Services, 4/12/2013).

Today, the European Commission fined 8 major banks a total of € 1.7 billion for participating in cartels rigging interest rate benchmarks in markets for financial derivatives covering the European Economic Area (EEA). According to the Commission, four of these firms participated in a cartel relating to interest rate derivatives denominated in euro, and six […]

The EU Parliament endorses tax on financial transactions

Algirdas Šemeta, Member of the European Commission in charge of Taxation, Customs, Statistics, Audit and Anti-Fraud, gave a press conference to present the details of the Financial Transaction Tax (FTT), which will be implemented under enhanced cooperation. As requested by the 11 Member States that will proceed with this tax, the proposed Directive mirrors the scope and objectives of the original FTT proposal put forward by the Commission in September 2011. (EC Audiovisual Services).

The European Parliament yesterday gave its final go ahead for the introduction of the Financial Transaction Tax (FTT) to be applied in the 11 Eurozone member states, which had initially accepted this Commission proposal. The European Parliament has a consultative role on tax matters. Consequently now it’s up to the 11 participating countries in this […]