Deutsche Bank Keeps Losing Money as Legal Costs Pile Up

Deutsche Bank Keeps Losing Money as Legal Costs Pile Up

Assessment

Interactive Video

Business, Social Studies

University

Hard

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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.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

How did Deutsche Bank's management approach the issue of raising capital?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What impact did the legal provisions and restructuring charges have on Deutsche Bank's capital build-up?

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