Deutsche Bank to post $7 BILLION Q3 loss

[devil21]

Great analysis by ZH here.

And so it begins...

http://www.zerohedge.com/news/2015-10-07/first-crack-deutsche-bank-preannounces-massive-loss-may-cut-dividend

[Zippyjuan]

New regulations are reducing their profits.

http://www.wsj.com/articles/deutsche-bank-sees-big-loss-on-write-down-in-corporate-banking-1444249402


Germany’s largest bank said the bulk of the write-downs were sparked by tougher regulatory requirements, which are driving down the value of its investment-banking business and other assets.

For Deutsche Bank, constraints on earnings coupled with regulators’ demands that the bank set aside more capital mean that its investment bank—notably including the Bankers Trust business it bought in 1999—isn’t expected to generate the profits it had in the past.

Some also comes from a Chinese bank they own part of and want to now sell off.


Of the overall charges announced Wednesday, the bank said €600 million relates to an updated valuation for its nearly 20% stake in Chinese commercial lender Hua Xia Bank Co., which it has been expected to sell. Deutsche Bank said Wednesday that the stake no longer fits into its strategy.

Excluding the one-time charges, Deutsche Bank said its loss in the third quarter is expected to be about €400 million.

Deutsche Bank has signaled plans to pull operations out of some countries and last month announced that it would close its investment-banking business in Russia, where it has suffered from decreasing profits and issues monitoring compliance.

With $1.7 trillion in assets, a loss of $7 billion is not going to make them go out of business.

[timosman]

http://www.infinitycarfinance.co.uk/credit/mortgage_comic_4.jpg

[devil21]

New regulations are reducing their profits.

http://www.wsj.com/articles/deutsche-bank-sees-big-loss-on-write-down-in-corporate-banking-1444249402



Some also comes from a Chinese bank they own part of and want to now sell off.



With $1.7 trillion in assets, a loss of $7 billion is not going to make them go out of business.


Ahh...there you are. Started to worry that you had bugged out.

As the ZH write-up explains, Lehman started buckling with far less losses. In a ZIRP environment, there's no reason that any bank should be posting losses, much less eye-popping numbers like that. Also interesting to note that Lehman declared bk 5 days after announcing their huge loss. Oct 12?

[DFF]

With $1.7 trillion in assets, a loss of $7 billion is not going to make them go out of business.

Client assets....which Lehman had a lot of too, couldn't save them.

[devil21]

And DB stock is up 3% in DAX trading right now. Lose $7B? Rally on! Are potential bail-ins now considered market positive? (edit: back to negative a couple hours later)

Talking head on CNBC just said "If you take away the $7B loss, Deutsche Bank is doing great!"

Can't make this shit up....

I'm noting that $1.5b appears designated for future litigation costs. Expecting a lot of time in court?



New regulations are reducing their profits.

Is that what you learned at Jackson Hole? The new term for losing money is "reducing profits"?



With $1.7 trillion in assets, a loss of $7 billion is not going to make them go out of business.

Are those assets as solid as subprime MBS were? AAA rated, dontcha know.

[Ronin Truth]

Meh. It was probably only really just fresh air, anywho. :p <shrug>