business model: The bank was reported to have put aside 5.5 billion euros for litigation at the end of June. "Die Welt" said that radical changes to the business model were typical requirements in settlement arrangements with the US government, reporting Deutsche Bank "must clarify one or two things" before an agreement could be made, according to Deutsche Welle. Under US regulatory requirements, a certain amount of capital would have to be dedicated to funding the bank US business. Germany biggest bank said last month that the US Justice Department had requested $14 billion to settle a probe tied to residential mortgage-backed securities. Reducing the size of the business would be one way to reduce the capital needs, if the settlement with the Department of Justice should exceed the amount the bank has put aside for legal disputes. But the sum it agreed to pay pales beside what still to come. DW recommends Deutsche Bank pays fine for unprotected market info Deutsche Bank looks unable to avoid making headlines as it faces a fresh fine for failing to properly protect non-public research information.
(news.financializer.com). As
reported in the news.
Tagged under business model, settlement arrangements topics.