Posts tagged "financial crisis"
Why do EU TTIP negotiators want to weaken bank regulations designed to protect taxpayers after the financial crisis?

Why do EU TTIP negotiators want to weaken bank regulations designed to protect taxpayers after the financial crisis?

TTIP talks took place in Brusseks last month, where Eurobanks aim to undermine proposed regulations for foreign banks by the Federal Reserve.  We want to know, what is Deutsche Bank– and Germany– doing behind closed doors? What will the EU trade to help get financial services included in TTIP?   The new Federal Reserve rule finalized in January 2014 will require Deutsche Bank, like all other too-big-to-fail banks operating in the US, to maintain minimum capital and liquidity as a backstop against taxpayer losses in the event of another financial crisis. But the Association of German Banks has lobbied against this rule and is pushing for a clause in the TTIP that would allow banks like Deutsche Bank to weaken its effect.  Why would European negotiators push for a process that would weaken bank solvency rules designed to protect all of us?  Conservative economist Simon Johnson wrote a piece on the lack of... {read more}
When will Deutsche Bank stop frittering away its capital?

When will Deutsche Bank stop frittering away its capital?

Last week, an article by Antoine Gara in The Street.com argued that Deutsche Bank should cut its planned dividend payments for 2013.  Recall that the bank has set a payout of €.75 per share, which the article notes exceeds the bank’s profits last year. Meanwhile, the bank’s recent earnings revision, which came about as a result of its decision to set aside an additional € 600 million for anticipated settlements of mortgage litigation and the Iran sanctions and LIBOR investigations, caused the Tier 1 capital ratio to fall from 8.0% to 7.8%.  According to Gara: Although Deutsche Bank could have minimized the capital hit of its earnings revision by cutting the dividend, the bank remains committed to a payout that would be unlikely to pass the Federal Reserve’s muster in the United States. Deutsche Bank’s rising legal costs and signs that regulatory probes may soon hit the bank’s pocket book... {read more}
Sheila Bair: In resisting stronger capital rules, German bank regulators used “tactics reminiscent of those used by segregationists” opposed to civil rights in the U.S.

Sheila Bair: In resisting stronger capital rules, German bank regulators used “tactics reminiscent of those used by segregationists” opposed to civil rights in the U.S.

  “Our most important relationship is with our regulator—guess where I was this afternoon?” — Anshu Jain, quoted in The Economist, 1/24/13 In a previous post, we commented on Federal Reserve Governor Dan Tarullo’s understated view that the “likelihood that some home-country governments of significant international firms will backstop their banks’ foreign operations in a crisis appears to have diminished.” {read more}
The DBRA Resource Page

The DBRA Resource Page

As promised, DBRA is starting a Deutsche Bank resource page, a single source location where our readers can find important and relevant primary documents about Deutsche Bank’s potential risks. We’ll be updating this regularly (and will include your suggestions). Please take a minute to look at the links we’ve posted. {read more}