Rumors that Deutsche Bank will not pay the Americans $ 14 billion, caused euphoria among investors on the stock exchange in Frankfurt. The securities of one of the world’s largest financial institutions remain, however, twice cheaper than a year earlier.
“Buy when blood is shed” – this time, stock statement was confirmed in the case of Deutsche Bank AG stock. Speculation about a possible bankruptcy of one of the largest banks in Europe continue on the market for a long time. On Friday, the owners of the shares of DB time, but a real “roller coaster.”
in the Morning the stock fell to a record low of 9.9 Euro per piece. Investors, however, they are not scared and dokupowali shares at the end of the session they expected the already very high income – the rate jumped up for about 11,60 euros, an increase of 17 percent compared to 14 percent compared with the rate of the link.
Source: Bloomberg.
Such a dramatic change in prices, the effect of the messages that DB will not suffer, however, with the giant cost of 14 billion dollars in the framework of the agreement with the U.S. Department of Justice. We are talking about the issue of compensation for providing customers with the toxic financial products related to mortgage market. The amount of the transaction, which is now speculating investors is “only” $ 5.4 billion.
the DB previously submitted that is not going to pay $ 14 billion: “In the case of RMBS (securities, secured by mortgages on residential facilities) in the United States, Deutsche Bank has no intention to enter into a settlement agreement regarding potential claims civil level even close to the output position of the Ministry of Justice, is 14 billion UAH. If it comes down to it, is controversial, we are confident that in the near future we will be able to close several important trials,” – said in the post, sent via DB.
the Amount of 5.4 billion dollars caused such euphoria among investors, because – simply put – out vision of the bankruptcy of DB. Earlier there are, in particular, reports that the Bank will be forced to seek the assistance of the German government. It has been suggested also that Angela Merkel is not going to help German financial institutions.
the Bank, by the way, rising around him in a panic has released a statement in which we can read: “Deutsche Bank is much more secure and stronger than it was before the financial crisis. Since 2007 the Bank has almost doubled its capital and our reserves płynnościowe grew more than three times. The Bank has also limited the rate of cost of risk (Value at Risk) is a key measuring market risk by more than 50 percent. Moreover, the stress test conducted by the European Office of Banking Supervision (EUNB) showed that Deutsche Bank will have the lowest losses, the loan from European banks operating at the international level, even in the most adverse scenario.”
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