John Cryan, CEO of Deutsche Bank, has failed to secure a deal over the weekend with the US Department of Justice, which recently fined the bank $14bn for the misselling of mortgage-backed securities. Shares fell more than 3% on Monday. Terry Torrison, managing director for McLaren Securities advises investors to "steer clear," and believes the bank will need to have a rights issue. The Justice Department's decision is not expected to affect its plans to buy up stakes in other banks that are under investigation by regulators.
John Cryan, CEO of Deutsche Bank, has failed to secure a deal over the weekend with the US Department of Justice, which recently fined the bank $14bn for the misselling of mortgage-backed securities. Shares fell more than 3% on Monday. Terry Torrison, managing director for McLaren Securities advises investors to "steer clear," and believes the bank will need to have a rights issue. When the final amount is known, the bank is expected to issue new shares and/or sell assets to ensure its capital ratio remains within the regulatory limits.