Deutsche Bank Said to Be Exploring Capital Options

Deutsche Bank Said to Be Exploring Capital Options

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Interactive Video

Business

University

Hard

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The transcript discusses Deutsche Bank's exploration of capital-raising options in light of potential DOJ fines ranging from $4 to $8 billion. The bank has authorization to seek €5 billion in equity capital without shareholder approval, which aligns with the DOJ's expected demands. Research indicates a €9 billion shortfall, prompting potential strategies like equity raises, compensation cuts, and asset sales. The bank's high cost structure and low internal capital generation are significant challenges.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the implications of not generating much capital internally for Deutsche Bank?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What strategies could Deutsche Bank employ if the market is patient?

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