German banking company Deutsche Bank has recently taken necessary steps in their efforts to rebuild their ailing reputation but despite those efforts, the bank is still trekking a long way according to a number of analysts who is also stating that the bank’s failure to get back on its feet will potentially leave an effect on the banking systems of Europe.
One of the actions recently taken by the bank was when Deutsche Bank announced that they would settle their penalty from the U.S. Department of Justice. The penalty comes from allegations that the bank has reportedly sold bond-packaged select mortgages back in 2005 until 2007. About $14 billion from the justice department was fined to the German bank then in settlement of the claims which lead to a shaken investor confidence in the bank.
Reports also stated that there’s a positive chance that the penalty will be paid before the end of the year or before Christmas. The markets and investors from all over the globe have taken a closer eye on the German bank for the past couple of months to whether Deutsche Bank is making a progress on the $14 billion fine.
Shares of Deutsche Bank then dropped to 7.5% on the fine from the US Justice Department as the banking form was also holding a sum of $6.5 billion reserved for litigation cases raising concerns about whether Deutsche Bank will go bankrupt in settlement of the allegations against them.
Despite the positive announcement, some analysts and investors have raised their brows as the negotiations and the settlement of the fines have taken a considerately longer amount of time which suggests that the bank thoroughly struggled with the arrangement and the resolution of the fine. The government of Germany then also has announced that no aid from the government will be given to the bank in their issues with agencies from outside the country.
Market Manipulation Claims On Deutsche Bank Employee
In the middle of its ongoing issue with the U.S Justice department, the bank is now facing another allegation as a former employee of the bank is being accused by the Russian central bank of trades worth $4.87 billion or 300 billion rubles being done with the
This comes as another dent in the face of Deutsche Bank as they are struggling to already fix its current reputation in Europe and in countries such as Russia.
Deutsche Bank has reportedly closed down several of their banking and investment operations in another trading scandal the last year.
Almost $10 billion worth of trades which reportedly happened last 2011 up to 2015 is now being investigated by authorities from both the United States and the United Kingdom. This issue also poses a threat to the bank’s recovery but despite that, the shares of the company have recovered to as much as 19.01 compared to the past two month’s decline to as low as 11.13.
The bank also posted better than expected third-quarter earnings report which is a major driver in their recovery from a 7.5% decline to an initial 4% surge on the release of their positive Q3 report.