Deutsche Bank: The two-phase plan involves first raising 1.75 billion euros from Paramount Holdings Services, an investment vehicle owned by Sheikh Hamad bin Jassim bin Jabr Al-Thani of the Qatari royal family, according to Deutsche Welle. Analysts believe the bank efforts to boost its capital is linked to an upcoming stress test by the European Banking Authority. Deutsche Bank capital ratio took a hit after poor quarterly results and intensified risk assessments, falling to below 10 percent and prompting warnings from rating agencies about the institution capital position. This, in turn, pushed the bank to act and Deutsche Bank recapitalization effort is set to inject some 8 billion euros $11 billion into the German lender coffers. The second step, set to begin on June 24, will see around 300 million shares sold to other investors to raise the remaining 6.3 billion euros.
(news.financializer.com). As
reported in the news.
Tagged under European Banking Authority, Paramount Holdings Services topics.