Deutsche Bank Keeps Losing Money as Legal Costs Pile Up

The US Department of Justice is seeking a $14 billion fine from Deutsche Bank for its sale of mortgage-backed securities. This has caused a drop in the bank's equity and debt. Deutsche Bank aims to negotiate a lower settlement, possibly around $8 billion, as it faces multiple legal challenges. The bank's capital reserves are under pressure, and it may need to raise new capital despite previous efforts to avoid this. The situation affects dividends and the bank's overall financial strategy.

What was the initial fine amount sought by the US Department of Justice from Deutsche Bank?

• $8 billion

• $14 billion

• $6 billion

• $10 billion

What amount does Deutsche Bank aim to settle for, according to their management?

• $10 billion

• $14 billion

• $6 billion

• $2-3 billion

What is the total legal reserve Deutsche Bank has set aside?

• $8 billion

• $4 billion

• $10 billion

• $6 billion

What financial strategy did Deutsche Bank employ to avoid raising new capital?

• Cutting dividends

• Selling assets

• Increasing loan interest rates

• Issuing new shares

What is a major concern for Deutsche Bank's capital reserves?

• Ongoing legal and restructuring costs

• High employee salaries

• High interest rates

• Low customer deposits