Investment Banking

New Year, New Deutsche Bank

  • Why it matters

    Why it matters

    Deutsche Bank has fewer legal and regulatory issues to resolve and can focus more on its future strategy.

  • Facts


    • Deutsche Bank said last week it has agreed a tentative $7.2 billion settlement with the Department of Justice over mortgage miss-selling.
    • It still faces legal action over its Russian business.
    • A memo sent by Deutsche Bank to its sales teams says the bank has found no evidence that it violated U.S. sanctions when some of its employees in Moscow helped Russians move money out of the country.
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A fresh start for Deutsche's John Cryan. Source: Bernd Roselieb for Handelsblatt

The Deutsche Bank board plans to meet in January to revise the current strategy, sources told Handelsblatt.

The bank wants to move forward, even though it still has not come to an agreement with the U.S. over its trades in Russia.

The focus on strategy comes days after the bank reached a verbal agreement with the U.S. Justice Department, to pay a penalty of $7.2 billion (€6.9 billion) for its role in miss-selling mortgages.

The prevailing sentiment among investors and the bank alike was one of relief. The Justice Department had initially demanded $14 billion, a sum that bank would not have been able to pay without a fresh injection of capital, and a figure that sent the Deutsche Bank share price to a record low in September.

The Russian legal suit is the other big case that Deutsche Bank chief executive John Cryan wants to resolve as soon as possible, but sources said the bank does not expect to reach an agreement on it before Donald Trump takes over as president next year.

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