Breaking News, World News and Taiwan News.

Deutsche Bank boosts finances with new capital

FRANKFURT, Germany--Deutsche Bank AG says raising 8 billion euros (US$11 billion) in new capital from investors will strengthen its finances as it faces tighter regulation and uncertain costs from litigation.

Co-CEO Anshu Jain told analysts Monday that the fresh capital would also help it meet “unforeseen challenges” that may be ahead. Jain said it was “impossible to quantify” the additional demands regulators may place on banks as regulatory efforts continue.

Chief Financial Officer Stefan Krause said on the call that the bank also faced a “challenging and unpredictable litigation environment” even after setting aside billions for fines and lawsuits, much of it relating to events that occurred years ago.

The capital increase comes as banks across Europe have been shedding risky investments and raising new financial buffers as they seek to meet new regulatory standards aimed at strengthening the banking system. The European Central Bank is conducting a detailed review of large banks' finances and holdings as it prepares to take over as the European Union's centralized banking supervisor in November.

The bank said Sunday it would raise 6.3 billion euros via a rights offering in which investors are asked to put up more money, and that it had already secured 1.75 billion euros by placing shares with Paramount Holdings Services Ltd, an investment vehicle owned by Sheik Hamad Bin Jassim Bin Jabor Al-Thani of Qatar.

Write a Comment
CAPTCHA Code Image
Type in image code
Change the code
 Receive China Post promos
 Respond to this email
WSJA
Subscribe  |   Advertise  |   RSS Feed  |   About Us  |   Career  |   Contact Us
Sitemap  |   Top Stories  |   Taiwan  |   China  |   Business  |   Asia  |   World  |   Sports  |   Life  |   Arts & Leisure  |   Health  |   Editorial  |   Commentary
Travel  |   Movies  |   TV Listings  |   Classifieds  |   Bookstore  |   Getting Around  |   Weather  |   Guide Post  |   Student Post  |   English Courses  |   Terms of Use  |   Sitemap
  chinapost search