Chancellor Angela Merkel’s bloc and her prospective Social Democrat coalition ally back leverage limits for banks advocated by the Basel Committee amid opposition from German lenders including Deutsche Bank AG.
Deutsche Bank AG, Europe’s largest investment bank by revenue, said third-quarter profit slid 94 percent after it set aside 1.2 billion euros ($1.65 billion) to cover potential legal costs and income from debt trading fell.
Germany’s banking regulator said it wants the European Central Bank to provide more information on what types of debt will qualify as capital as Europe’s biggest lenders prepare to sell notes to strengthen finances.
Deutsche Bank AG wants to remain one of the largest fixed income and derivatives traders globally in anticipation of higher profitability as competitors shrink, co- Chief Executive Officer Anshu Jain said.
Deutsche Bank AG, continental Europe’s biggest bank, will reduce its balance sheet as regulators implement stricter rules on the relation of equity to total assets, Chief Financial Officer Stefan Krause said.
Deutsche Bank AG hired law firm Fried Frank Harris Shriver & Jacobson LLP in March 2010 to conduct an internal probe days after a trader alleged the bank had misrepresented the value of derivatives to mask paper losses during the financial crisis.
Deutsche Bank AG, Europe’s biggest bank by assets, is considering selling contingent convertible bonds to bolster capital at its U.S. unit should the Federal Reserve implement stricter rules for foreign banks.
Deutsche Bank AG, continental Europe’s biggest bank, said it will shrink its balance sheet by 250 billion euros ($332 billion), joining Barclays Plc and UBS AG in seeking to comply with stricter capital rules.