Germany - Deutsche bank posted a surprise net loss of €2.2bn for
the fourth quarter. Germany's biggest bank was hit by hefty litigation and restructuring
charges as the bank slims down, in light of the changing investment banking
environment. Deutsche is being investigated for alleged manipulation of benchmark interest
rates. Today it announced €1bn in litigation charges in the fourth quarter,
which it said reflected "adverse court rulings and developments in regulatory
investigations". Co-chief executives Juergen Fitschen and Anshu Jain said: We embarked upon the path of deliberate but sometimes uncomfortable change in
order to deliver long term, sustainable success for the bank. Simultaneously, we
set the bank on course for fundamental cultural change. This journey will take
years, not months. Last week Germany's second-biggest lender, Commerzbank said it was planning
to cut as many as 6,000 jobs, or more than 10% of its workforce. Secret Monte dei Paschi document found in 14th-century
palace. At the risk of sounding flippant, Italy's Monte dei Paschi scandal has to be
one of the more colorful banking scandals. For a start, it deals with the world's oldest bank, established in 1472 to
lend to "the poor or miserable or needy". Now it seems the secret
document at the heart of the scandal lay for months in a concealed safe in a
14th-century Tuscan palace. Silvia Aloisi and Stefano Bernabei of Reuters report: Chief executive Fabrizio Viola said he learned about the safe's contents only
last October, a full 10 months after he had been called in to sort out Italy's
third biggest bank. The 2009 document revealing derivatives deals that have run up huge losses
for Banca Monte dei Paschi (BMPS.MI) came to light in the office of Viola's predecessor
at the bank's headquarters in Siena. 'The document was in a safe, moreover in an office that was no longer mine,'
said Viola. 'I don't think that the person who put it there had been trying to
hide it. But there is no doubt that the document had not been used in the bank's
accounting.' The document found at the 540-year-old bank's head offices – which are
appropriately in a restored ancient fortress – was a contract mandating Japanese
bank Nomura to carry out deals on behalf of Monte dei Paschi.
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Sunday, June 23, 2013
Deutsche bank posts surprise loss.
Germany - Deutsche bank posted a surprise net loss of €2.2bn for
the fourth quarter. Germany's biggest bank was hit by hefty litigation and restructuring
charges as the bank slims down, in light of the changing investment banking
environment. Deutsche is being investigated for alleged manipulation of benchmark interest
rates. Today it announced €1bn in litigation charges in the fourth quarter,
which it said reflected "adverse court rulings and developments in regulatory
investigations". Co-chief executives Juergen Fitschen and Anshu Jain said: We embarked upon the path of deliberate but sometimes uncomfortable change in
order to deliver long term, sustainable success for the bank. Simultaneously, we
set the bank on course for fundamental cultural change. This journey will take
years, not months. Last week Germany's second-biggest lender, Commerzbank said it was planning
to cut as many as 6,000 jobs, or more than 10% of its workforce. Secret Monte dei Paschi document found in 14th-century
palace. At the risk of sounding flippant, Italy's Monte dei Paschi scandal has to be
one of the more colorful banking scandals. For a start, it deals with the world's oldest bank, established in 1472 to
lend to "the poor or miserable or needy". Now it seems the secret
document at the heart of the scandal lay for months in a concealed safe in a
14th-century Tuscan palace. Silvia Aloisi and Stefano Bernabei of Reuters report: Chief executive Fabrizio Viola said he learned about the safe's contents only
last October, a full 10 months after he had been called in to sort out Italy's
third biggest bank. The 2009 document revealing derivatives deals that have run up huge losses
for Banca Monte dei Paschi (BMPS.MI) came to light in the office of Viola's predecessor
at the bank's headquarters in Siena. 'The document was in a safe, moreover in an office that was no longer mine,'
said Viola. 'I don't think that the person who put it there had been trying to
hide it. But there is no doubt that the document had not been used in the bank's
accounting.' The document found at the 540-year-old bank's head offices – which are
appropriately in a restored ancient fortress – was a contract mandating Japanese
bank Nomura to carry out deals on behalf of Monte dei Paschi.
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Thousands of workers and unemployed people marched in Rome on Saturday to protest against record unemployment and call on Enrico Letta's two-month-old government to deliver more than empty rhetoric on the issue.
The rally, organised by the country's three largest unions was the first major protest since Letta's broad, left-right coalition took office following an inconclusive election in February.
Italian unemployment rose to 12% in April, the highest level on record, and joblessness among people under 24 is at an all-time high above 40%.
Union chiefs, speaking before a flag-waving crowd estimated at more than 100,000 by the organisers, criticised Letta for what they called a lack of action on an urgent problem.
"We can't accept these continuous promises that aren't translated into decisions that give a change of direction," said Susanna Camusso, leader of the country's largest union CGIL.
Luigi Angeletti, head of the UIL, said the country could not afford the piecemeal approach to policy adopted so far, especially when the ruling coalition is so fragile.
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