Deutsche Bank (DB) Trading Down 2.5%

The Fed is Deutsche Bank’s main regulator in the US

The Fed is Deutsche Bank’s main regulator in the US

"We appreciate S&P's statement that 'management is taking tough actions to cut the cost base and refocus the business in order to address the bank's now weak profitability", the German lender said.

Many of you are sick and exhausted of bad news.

The addition of Deutsche Bank's federally insured USA business to the list accounted for the shift in assets, the Financial Times reported citing one person familiar with the situation.

The stock of Deutsche Bank Aktiengesellschaft (NYSE:DB) hit a new 52-week low and has $10.03 target or 7.00 % below today's $10.78 share price.

Credit ratings are especially crucial for banks, whose perceived health is important in winning business and Deutsche Bank is a big issuer of ratings-sensitive debt securities.

"Let's be straightforward: the news flow is not good", Deutsche Bank CEO Christian Sewing wrote in a letter to staff on Friday. ValuEngine lowered shares of Deutsche Bank from a "buy" rating to a "hold" rating in a research report on Wednesday, February 7th. Sewing announced last week that the bank would cut its workforce from 97,000 to under 90,000 and refocus its global investment banking business on its European core, while cutting back on stocks trading operations in NY and London.

Deutsche Bank AG (NYSE:DB) touched its 1-Year High price of $20.23 on 12/18/17 and its 1-Year Low price of $11.18 on 05/29/18.

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Deutsche Bank has run into challenges throughout recent years.

Deutsche Bank was also well positioned to react to excessive moves in debt markets, Sewing said, adding that a series of enforcement actions by the Fed were principally related to weaknesses in internal controls and infrastructure.

Sewing did not mention the criminal charges being faced by Deutsche in relation to the roughly A$2.5bn ANZ share sale, but the bank said in a separate statement: "Deutsche Bank confirms that it expects to be charged by the CDPP [Commonwealth Director of Public Prosecutions] and ACCC [Australian Competition and Consumer Commission] in relation to an institutional share placement by ANZ, in which Deutsche Bank acted as joint underwriter with Citigroup and JP Morgan, in August 2015". As you know, we have made progress in remediating them in the past year.

A reduced credit rating typically raises a bank's cost of borrowing and thus its overall funding costs and can affect long-term deals such as interest-rate swaps. "We're not yet where we want to be, but we are steadily getting there". That was one or two notches below most European competitors, with Switzerland's UBS rated A+ with a stable outlook.

At this point, the Fed's helping hand has seemed more like a touch of death for Deutsche Bank investors.

Deutsche Bank's trailing 12-month revenue is also down 1.8 percent over the past year - roughly in-line with Credit Suisse's 1.2-percent decline, below Barclays' 1.2-percent gain and well above Lloyd's 8.3-percent decline.

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