When it comes to floundering under the weight of legacy litigation costs (both real and psychological), nobody does it like Deutsche Bank.
It's just on and f*cking on.
Benchmark manipulation, sanctions flouting, you name it and Deutsche Bank has been accused of it.
Hell, there are even allegations (and this doesn't get much press) that had the bank been forced to mark a series of leveraged super senior trades with Canadian conduits ca. 2007 to market, Deutsche might have required a state bailout in 2009...
In short, they are never going to get out from under this if you ask me (and just trust me when I tell you that I've got a pretty good read on it).
There's certainly quite a bit of "franchise damage," as Goldman put it on Thursday morning after the bank turned in pitiful operating results for Q4.
Deutsche's shares plunged in overnight trading.
Here's a snapshot of the quarter:
And for those interested, here's what analysts think (via Bloomberg):
CITIGROUP (sell/high risk)
4Q earnings bring capital improvement at a "heavy cost"
Expect mid-single digit downgrades to consensus estimates for EPS
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