Posts tagged "leverage ratio"
New FBO rules impact on DB: No Big Deal?

New FBO rules impact on DB: No Big Deal?

  During its January 31st earnings call, the bank seemed to want it both ways—objecting strongly to the imposition of the new FBO rules requiring more capital in the U.S., and yet downplaying the bank’s need to move or raise capital. From transcript of the call: Jernej Omahen, Goldman Sachs analyst: The first question I’d like to ask relates to the Fed proposal. And I have to say so, and maybe it’s me, but I’m just confused because I don’t understand whether Deutsche Bank believes this is a big deal or whether you think it’s not a big deal. Because on the one hand you’re telling us we won’t have to raise any capital as a consequence of this, it’s not going to have a meaningful impact on our operations, and on the other hand you’re telling us this is such a big deal that it’s going to spike retaliation from European... {read more}
Graham Fisher analyst skewers German politicians and banks; says “Deutsche Bank is now almost 50% more leveraged than Lehman was when it failed.”

Graham Fisher analyst skewers German politicians and banks; says “Deutsche Bank is now almost 50% more leveraged than Lehman was when it failed.”

  Recently, Joshua Rosner, Managing Director of Graham Fisher & Co., authored a report on the implications of the Eurocrisis for Germany.  The report, Eurozone Crisis: No More Safe Havens, is full of insights and sharp criticisms of German regulators and political leaders and is getting attention in the blogosphere and on Bloomberg news for its suggestion that rising German anger over the crisis is misdirected. {read more}
12 Questions for Deutsche Bank in 2012

12 Questions for Deutsche Bank in 2012

On February 2, 2012, Deutsche Bank CEO Josef Ackermann will discuss the bank’s preliminary results for FY 2011. Ackermann will leave the bank in 2012—a year in which the World Bank projects a recession in the EU, an anemic recovery in the US, and reduced growth in emerging markets.  Against the backdrop of a projected global economic slowdown, and in preparation for Dr. Ackermann’s comments, we have posed 12 questions that may continue to haunt Deutsche Bank in 2012. {read more}

Simon Johnson to Senate panel: “Taunus Corporation is a spectacular, in-our-faces demonstration of these risks becoming bigger”

On Wednesday, the Senate Banking  Subcommittee on Financial Institutions and Consumer Affairs, Chaired by Senator Sherrod Brown (D-OH), held hearings on “Enhanced Supervision: A New Regime for Regulating Large, Complex Financial Institutions.” The topics under discussion dealt primarily with the enhanced powers granted to regulators under the Dodd-Frank legislation and whether they are adequate to deal with the challenges facing the world’s financial markets or whether additional, more fundamental financial reforms may be required. There were many interesting – and surprisingly bipartisan and friendly – exchanges among and between the lawmakers and panelists, but one in particular, at the 77 minute mark, caught our attention.  The questioner was freshman Republican Senator Jerry Moran from Kansas.  The respondent was Simon Johnson, the Ronald A. Kurtz Professor of Entrepreneurship at MIT Sloan School of Management and former Chief Economist at the IMF.  We have transcribed it below: Senator Jerry Moran (R-KS): Have... {read more}