Deutsche Bank in The News
In an analyst rating update on Thursday shares of Lloyds Banking Group PLC ORD (LON:LLOY) had their rating reiterated by analysts at Deutsche Bank.
The broker said it has now set a ‘Hold’ rating on shares of Lloyds Banking Group PLC ORD with a price target of 59. The price target according to the broker shows a possible increase of 11.26% from the current stock price of 53.03.
Deutsche Bank has received a cautious vote of creditor confidence. The German lender is issuing expensive debt. That shows it can get access to markets, despite a feared $14 billion American regulatory fine. It is less powerful a signal than buying debt back, as Deutsche Bank did in February — but at least it shows that investors do not fear losses that could eat into senior debt.
Deutsche Bank AG is implementing a companywide hiring freeze as Chief Executive Officer John Cryan seeks to lower costs and shore up investor confidence, according to people with knowledge with of the matter.
Germany’s biggest bank returned to the US high-grade bond market on Tuesday to sell an additional $1.5 billion worth of debt, offering more than double the yield it paid a year ago. Deutsche raised $3 billion in a bond sale last week. This has given investors in the troubled bank confidence it can tackle the litigation with the US Department of Justice. Deutsche is facing a $14 billion fine over its American mortgage-backed securities business which allegedly led to the US housing crisis in 2008.
CommentWould I be surprised to see some news that the bank is failing and cannot correct itself? After all the ups and downs of the past few weeks - from disappointment at not being able to negotiate with the US authorities, to questions over its entire structure and how it passed previous stress tests - I wouldn't be surprised at anything.
The worry is that it is coming at a critical time. After a sensible victory for Clinton in November, we can all breathe a sigh of relief that the world can continue on its way without a wild card in play.