Investment bankers complete Deutsche Bank takeover 8 Mar 2012 The latest management reshuffle at the German-based group has elevated several investment bank executives. That’s partly new co-CEO Anshu Jain picking his own team. But it’s also confirmation that, despite the crisis, trading and risk management nous are still crucial.
Ackermann sings a pained Deutsche swansong 2 Feb 2012 The German lender’s boss has built an investment banking powerhouse during his decade at the helm. But his last set of quarterly results are poor, the bank has a capital hole to fill and the long-term share price performance leaves little to write home about.
EU must learn to cope with new German leadership 30 Jan 2012 Berlin will get the euro fiscal treaty it wants, and even Nicolas Sarkozy is using Germany as an example for French reforms. The euro zone has to get used to the new regime. The shock over the tough German line on Greece shows adjustments are needed - from both sides.
Commerzbank bonus case is echo of a greedier era 25 Jan 2012 More than 100 ex-Dresdner bankers are heading to court over a 50 mln euro bonus promise. The case tests whether Commerz was entitled to slash payouts after buying the ailing German lender. But even if staff win, new rules on guarantees and clawbacks make future claims harder.
Commerzbank Houdini act tests regulators’ resolve 19 Jan 2012 The German lender thinks it can conjure up 6.3 bln euros of capital to meet the European Banking Authority’s target. Fiddling with regulatory ratios isn’t the same as injecting fresh equity, but the EBA lacks the power to intervene. That won’t help confidence in Europe’s banks.
Stalling German motor is Europe’s other difficulty 16 Jan 2012 Germany the strong? Well, yes, fiscally. It was not downgraded by S&P because its fiscal deficit is just 1 percent of GDP. But German growth has stalled again. It depends too much on exports. The irony is that the EU’s biggest economy can’t propel itself – or the euro zone.
Time to think small in stock exchange M&A 10 Jan 2012 If Brussels vetoes Deutsche Boerse’s merger with NYSE, the deal will join Australian and Canadian takeovers on the scrapheap. Exchanges battling legal change and weak markets could use merger-led cost cuts. But from now on big deals will be the exception, not the rule.
German economy ploughing ahead if euro holds 20 Dec 2011 If the euro zone stays in place, its troubles may redound to Berlin’s advantage. The euro will stay weak, while Germany will enjoy a finance cost advantage over its neighbours. Next year may see German exports surging and growth well above current sub-1 percent forecasts.
JPMorgan faces tangle in cable M&A 9 Dec 2011 The U.S. bank agreed to be a backstop buyer if Liberty Global’s takeover of Germany’s KabelBW is blocked. But JPM wouldn’t find it hard to sell KabelBW on, and it shouldn’t lose money. A clean execution of the JPM plan B could be a boost for devices neutralising regulatory risk.
Commerzbank may not avoid state aid Groundhog Day 5 Dec 2011 The German lender may need 5 bln euros of capital – two-thirds of its market value – to ease euro woes. Having almost repaid its last slug of state cash, it will resist more. But the most plausible solutions mean Berlin pumping in more equity, or giving a leg-up by other means.
SAP pays $3.4bln to ride rise of "cloud" computing 5 Dec 2011 The German software giant is swallowing a fast-growing yet barely profitable upstart, Successfactors. The price is a lofty 8 times sales but SAP needed a deal. It risked missing out on a huge shift by corporate clients to cloud-based technology applications.
Poland fears euro death and mulls euro membership 1 Dec 2011 Poland is calling on Germany and the ECB to prevent a euro collapse that would be devastating for it and central Europe as a whole. But while fearing the euro’s demise Poland remains drawn to joining the single currency. The case for staying out is stronger.
Germany needn’t fear common euro zone bonds 28 Nov 2011 Investors have begun to worry that the country will have to backstop other countries’ debts. Common bonds would end Germany’s days of ultra-cheap borrowing, but if it was part of a genuine fiscal union funding costs need not go sky-high. A botched job could be costly, though.
AT&T’s $4 bln admission: DT deal may be a turkey 24 Nov 2011 Happy Thanksgiving from the U.S. telco. It has acknowledged its $39 bln T-Mobile takeover may flop, taking a charge worth 10 pct of the deal to cover a record break fee. Failure would also deprive AT&T of synergies, Deutsche Tel of an exit and investment banks of a rare payday.
Deutsche asset manager sale could fill capital gap 24 Nov 2011 The German lender needs 2-3 bln euros to meet demands from regulators. Deutsche thinks it can make up the shortfall by retaining earnings and shrinking its balance sheet. But it could also raise the cash by selling underperforming parts of its asset management arm.
Investors start to notice Germany is in euro zone 23 Nov 2011 Neither an undersubscribed Bund auction nor yields crossing the 2 percent threshold is a sign of total panic. Still, Germany is looking less like a safe haven. That makes sense - it would struggle if the euro came unstuck. All the more reason for EU leaders to stop squabbling.
France, Germany could agree on ECB’s euro role 22 Nov 2011 Berlin stands right behind the ECB’s reluctance to engage in quantitative easing. Better to let governments take care of reform and rescue. Paris has joined the chorus asking the bank to reconsider, but France isn’t on a collision course with Germany. It all comes down to timing.
Deutsche wisely bids Joe Ackermann auf Wiedersehen 14 Nov 2011 After building a world-class investment bank, the German lender’s boss is leaving on downbeat notes: a cut profit target and prosecutors examining his testimony in the Kirch case. Keeping him as chairman would have been a distraction. Allianz’s Paul Achleitner is a safer choice.
Euro zone not yet ready for Greek game of chicken 3 Nov 2011 Merkel and Sarkozy have threatened to cut Greece loose if it doesn’t back the latest bailout plan. But Europe isn’t prepared to handle the backlash. With barely a month to get its act together and a history of dysfunctional decision-making, there’s a big risk of a mega crash.
Deutsche holds firm in turbulent markets 25 Oct 2011 The German lender made a pre-tax return on equity of just 7.2 pct in its third quarter. This reflects poor trading in the investment bank. But that part of the business is gaining share. And it may now avoid having to raise fresh equity.