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Summary of the bank that collapsed: Deutsche Bank at an historic low

A series of financial scandals and the payment of heavy fines are only part of the difficult image problem that has accompanied Deutsche Bank for years. But even when its share is trading at a low of more than 30 years, its leaders are still convinced that there is no need for a fundamental change in its conduct

Last month, Deutsche Bank was given a new nickname. The big bank in Germany, one of the oldest in Europe and the largest in the world, the great lender and the huge foreign currency trader is now referred to by the American media – somewhat kindly – Rosetta Stone, as if the bank had the key to solving the big mystery: the financial situation of US President Donald Trump.

 

But for more than a decade can not be pinned to the brand “Deutsche Bank

(7.52 + 1.21%)

“The bank, which manages assets of $ 1.6 trillion – half of Germany’s GDP – crashed 73 percent from its peak in 2007 and is now trading at a 30-year low at $ 7.67 per share.

 

 

And like all the other unflattering years, his entanglement with the American political system also reflects the complex story of the bank, its controversial organizational and economic culture, and the way it deals with failures.

 

Expansion, and yield

Deutsche Bank was founded in 1870 in Berlin, and for years nurtured an uncompromising business approach of expansion and expansion, and of striving for a return. This included, among other things, broad funding for the Nazi Party in the 1930s and 1940s (known as the “dark period”), conducting business under international sanctions with Iran, Syria, Libya and Sudan in the 1990s, and assistance to Russian oligarchs To launder capital in the 21st century. At the same time, after the global crisis, the bank found it difficult to generate income due to the ongoing low interest rate environment and the new banking regulations, and consistently destroyed two thirds of its income on operating expenses. Deutsche went into a whirl.