Neglected Investors

Deutsche Bank Shareholders Need to Fight Back

I think the shareholders are over there. A statue in front of Deutsche Bank's former HQ in Frankfurt. Source: Reuters
I think the shareholders are over there. A statue in front of Deutsche Bank's former HQ in Frankfurt.
  • Why it matters

    Why it matters

    If Deutsche Bank wants to become a truly global company, it needs to start taking better care of its shareholders.

  • Facts

    Facts

    • Germany’s largest bank has launched a review of strategy and profit targets and is considering a cutback in retail banking.
    • Deutsche Bank is expected to post another quarterly loss.
    • The bank has been saddled with big fines and settlements over past misdeeds.
  • Audio

    Audio

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In the United States, debates are underway about whether to split up several large banks.

Critics ask whether it would be better for the shareholders of JP Morgan Chase or Citigroup if the banks were dismantled. The difference between each bank’s market value and asset value are solid arguments in favor of break-ups.

The market value of Citigroup, for example, has been at about 75 percent of its asset value for years. This means one of two things: Either the bank is not meaningfully applying its own capital or is keeping risks hidden and secret.

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