Is the Financial Crisis Still Haunting Deutsche Bank?
Deutsche Bank (NYSE:DB) may have weathered the financial crisis without asking the federal government for a bailout, but that does not mean that the bank has had an easy time of it. The aftershocks of the crisis have forced Germany’s largest lender to restructure its business to meet new banking regulations and face legal proceedings regarding its involvement in the manipulation of the London Interbank Offered Rate interest benchmark, and both restructuring fees and legal costs wreaked havoc on the bank’s fourth-quarter results.
The Frankfurt-based Deutsche Bank reported a large and unexpected quarterly loss on Thursday. For the three months through December, the bank posted a net loss of 2.2 billion euros, or $3 billion. The results highlighted the tough task ahead of Jürgen Fitschen and Anshu Jain, the co-chief executives who began transforming the bank’s business less than seven months ago. When they took control of operations, both men pledged to manage the legacy of the financial crisis severely, reported The New York Times.
Contributing to the net loss were “significant litigation” charges, the bank said, without offering specifics. However, despite the loss, fourth quarter revenue increased 14 percent, to 7.9 billion euros, from the year-ago quarter…