Deutsche Bank Extends Losses Near Record Lows: “Significantly Undercapitalized… Even Without Bad Outcomes”
- Deutsche Bank Extends Losses Near Record Lows: “Significantly Undercapitalized… Even Without Bad Outcomes”
by Tyler Durden, http://www.zerohedge.com
Things are going from worse to worst once again for Deutsche Bank as equity and credit markets deteriorate further as analysts warn Germany’s biggest (and the world’s most systemically dangerous) bank would be “significantly undercapitalized” even if an eventual settlement with the DoJ can be covered by the bank’s reserves. Despite multiple capital raises over the past few years, as Bloomberg notes, any likely settlement would imply a capital increase – just to pay the fine.
Deutsche equity down another 3% this morning, near record lows…
As Bloomberg reports, The U.S. Department of Justice opened negotiations with a demand for $14 billion to settle a dispute over mortgage-backed securities, more than twice the 5.5 billion euros ($6.1 billion) the bank had set aside for all legal disputes at the end of the first half.
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