22 Jan 2016
Germany’s largest bank, Deutsche Bank, revealed yesterday that it expected to have made an overall loss of $7.3 billion in 2015, which the bank blamed on write-downs, restructuring charges and litigation costs.
The bank is currently involved in 6,000 lawsuits for alleged money laundering and rate manipulation.
In May 2015, the bank was fined $2.5 billion for its involvement in interest rate manipulation, the largest penalty ever issued against a bank.
In October 2015, the U.S. Justice Department and New York State’s Department of Financial Services (DFS) broadened their probe into Deutsche Bank’s operations with Russian clients following a suspected breach of Western sanctions.
Deutsche Bank went on to identify as much as $10 billion in total trades that might not have been properly vetted for AML purposes in connection wtih the movement of money out of Russia.
Alongside the continued legal issues the bank is facing, tougher regulations on capital requirements resulted in write-downs of $6.3 billion and charges on assets, including its 20% stake in Chinese bank Hua Xia Bank.
The losses have resulted in the announcement of approximately 26,000 job cuts, around a quarter of the overall workforce, and the selling of assets. The bank has also pulled out of 10 countries.
Deutsche Bank’s new co-chief executive, John Cryan, has described the scale of the loss as “sobering”.
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