The Problems Of Deutsche Bank - 1208 Words

The Problems Deutsche Bank is facing: Global capital markets are being pressured by the travails of Deutsche Bank, one of Europe’s largest investment banks, and there is yet no clarity on when the coast will clear. The bank’s stock has plunged to all-time lows as concerns about liquidity arose for a firm considered systemically important. The fear is that the German bank could fail and spark a domino effect that would harm the global banking system. This worry is heightened as German Chancellor Angela Merkel’s administration has rejected any bail-out plan. Problems which have been facing by the bank as follows: Huge fine of $14 billion faced by the Bank, prompting fear of a new financial crisis by US regulatory body: Deutsche Bank, Germany’s largest bank, is facing its biggest crisis since the global financial meltdown in 2008. US regulators were seeking to fine the company $14 billion — not just a large sum of money but actually enough to fundamentally threaten the viability of the bank. And that was only the latest in a series of setbacks that have cost the company’s stock more than half its value over the past year. A year ago, the company announced plans to lay off 35,000 people shortly after announcing a $7 billion quarterly loss. In November, the bank agreed to pay a $258 million fine for violating US sanctions laws. In June it failed a US regulatory stress test† designed to predict whether it would survive a major economic downturn. And now Deutsche BankShow MoreRelatedDeutsche Bank Ma Case Answer 1,5,71052 Words   |  5 PagesQuestion 1: What is the problem in the case? The problem in the case deals with merger and acquisition. The buyer is Intercontinental Capital, Ltd.(ICL),and the target firm is Consolidated Supply S.S. 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