Just hours after Deutsche Bank reached a landmark settlement with US regulators today, the group made efforts to alleviate concerns of its employees, touting its economic strength despite a litany of legal concerns, according to a Bloomberg report.
Earlier today, Deutsche Bank with US authorities to resolve a probe into the alleged the wrongful sale of mortgage-backed securities, or toxic subprime debt. Moreover, the group also denied reports that it had breached any sanctions with Russia.
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Deutsche Bank had already been facing a number of other concerns, mostly of its own making, which were characterized by sagging revenues and lower profitability. Over the past year, , a path Deutsche Bank’s CEO John Cryan has repeatedly backed.
Credit Rating Not Affected
Per its latest settlement however, Deutsche Bank distributed a memo, asserting that the resultwill not affect its credit rating or its ability to operate in the United States. Interestingly, the bank is also rumored to be creditor to US President-elect Donald Trump, though reiterated it did not expect to receive preferential treatment.
Concerns were originally raised after a potential weakening of the bank’s ability to pay coupons on some of its bonds – this in turn triggered a share price drop earlier in 2016, though today’s news has hardly moved the needle during US trading Friday. At the time of writing, shares of Deutsche Bank (NYSE:DB) are operating in positive territory, settling at $18.59, or up 0.30%.
According to a recent memo released by the bank: “By agreeing this settlement, we are removing a long-standing uncertainty from Deutsche Bank. We anticipated that the credit market will welcome the sentiment. We anticipate paying coupons on all of our instruments on time and in full.”
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