Posts tagged "litigation reserves"
Poll: Should Deutsche Bank consent to the release of BaFin's LIBOR probe results?

Poll: Should Deutsche Bank consent to the release of BaFin’s LIBOR probe results?

This month BaFin will complete its probe of LIBOR rate-rigging allegations at Deutsche Bank.  Opposition party politicians in Germany have asked BaFin to release the results of its investigation into Deutsche Bank’s alleged role in the LIBOR rate-rigging scandal.  BaFin claims that under German bank secrecy law it is unable to release the investigation without the bank’s consent.   {read more}
Stop us before we model again:  Is aggressive RWA modeling undermining Basel’s legitimacy?

Stop us before we model again: Is aggressive RWA modeling undermining Basel’s legitimacy?

Some might argue Basel standards were intended to make life easier for “universal” banks like Deutsche Bank—creating common standards across borders for global businesses.  And according to Chris Whalen of Institutional Risk Analytics, the Basel III standards have had another, more direct, benefit for “the hopelessly insolvent” DB: “If you measure the tangible equity of the entire DB group vs. total assets, what is known as a leverage ratio, the bank has lower capital than any large US bank. Only the canard of capital to “risk weighted assets” brought to us via Basel III allows DB to keep operating.” According to Dominic Elliot of Breakingviews, published in in The New York Times Dealbook, DB’s  “fancy footwork” (i.e. changes to their internal RWA models) accounted for a quarter of the reduction in risk-weighted assets announced during the bank’s January 31st analyst call.  But is it possible the bank’s creative RWA modeling... {read more}
Why Deutsche Bank shareholders and counterparties should be paying attention to Retirement Board v. Bank of New York Mellon

Why Deutsche Bank shareholders and counterparties should be paying attention to Retirement Board v. Bank of New York Mellon

In a previous post we pointed out that with respect to the subprime mortgage crisis (and ensuing litigation), Deutsche Bank wore many hats: they owned a unit (MortgageIT) that originated subprime mortgages;  were responsible for assembling, packaging and underwriting scores of mortgage pools and selling the resulting residential mortgage backed securities (RMBS) and collateralized debt obligations (CDOs) to institutional investors; and they served as trustee for dozens of mortgage pools underwritten by other US and European banks. {read more}
How Will Deutsche Bank Be Affected by the LIBOR Scandal? (Part II)

How Will Deutsche Bank Be Affected by the LIBOR Scandal? (Part II)

UPDATE, 7/23: Deutsche Welle reports (“Deutsche Bank to make provisions for steep Libor fine“): “Deutsche Bank’s management and supervisory board were discussing provisions of between $300 million (247 million euros) and $1 billion, according to Handelsblatt, which quoted sources in the sector.” —– “Anxiety currently reigns at Deutsche Bank.” Our earlier post outlined several LIBOR-related questions for Deutsche Bank and its co-CEO Anshu Jain. Here we raise three more areas of concern: {read more}