Deutsche Bank (DB) is getting desperate, and Wall Street is ditching it—fast.
The most recent quarterly results were dismal, one of its investors has been turned into a paid advisor, and now there is talk about closing down the bank’s equities trading branch over losses of around $750 million last year, according to the Wall Street Journal.
On Wall Street, there’s only a single analyst covering DB that has a “buy” rating. The other 31 one are summoning the bear. In a year, the bank’s shares have lost 42 percent.
It’s trying to restructure, but so far that’s not working, and it’s quite possible that the next step is a government-forced merger with Germany’s other big bank—Commerzbank, both of which are also losing market share and facing a major threat from fintech; particularly Wirecard—the most successful pioneer in the no-cash environment.
DB’s equities arm has been in trouble for a while. In 2018, DB CEO Christian Sewing initiated a streamlining to remove 7,000 jobs from the corporate and investment bank. Three years ago, the equities trading arm had some 30 executives; now, it has about eight in Europe.
The equities trading unit brought in only $428 million in revenue in the last quarter—a result lower than anything its seen in five years or more, according to Bloomberg.
It has helped share prices that DB’s seen a series of scandals, including its offices being raided related to the Panama Papers investigations.
more http://www.investmentwatchblog.com/wall-street-smelling-blood-abandons-a-deutsche-bank-in-freefall/
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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