Deutsche Bank Trust Co. Americas ratcheted up its battle with Donald Trump, claiming the hard-charging developer personally owes it $40 million after defaulting on a $640 million construction loan for Trump International Hotel & Tower in Chicago.
On Friday, Deutsche, the main lender on Trump’s development alongside the Chicago River, filed suit against Trump in New York State Supreme Court in Manhattan.
Tags: Deutsche Bank, Donald Trump, Economy
Nov. 20 (Bloomberg) — JPMorgan Chase & Co., the largest U.S. bank, plans to fire about 10 percent of its investment banking staff, or about 3,000 people, as the global economy slides into recession, a person familiar with the bank said.
The reductions are in line with New York-based JPMorgan’s rivals, including Goldman Sachs Group Inc., which said it will eliminate about 10 percent of staff. JPMorgan’s cuts will be global and include various groups within the investment bank, the person said, speaking anonymously because the news isn’t yet public. Some employees at the New York-based firm have been notified.
“There are aggressive cuts going on everywhere,” said Rupert Della-Porta, the London-based chief operating officer of research firm Atlantic Equities. “There are marked differences between business conditions now and the forward views that even the most conservative managers had. JPMorgan has to right-size their business model.”
JPMorgan also plans to freeze base salaries next year for most employees who earn more than $60,000 to $70,000, another person said. Tasha Pelio, a spokeswoman for JPMorgan declined to comment. JPMorgan’s decision to fire employees was reported earlier by the Sunday Telegraph and Reuters.
Tags: Banks, Deutsche Bank, Economy, Goldman Sachs, JPMorgan, Recession, U.S., Unemployment, Wall Street
Nov. 10 (Bloomberg) — General Motors Corp. plummeted as much as 31 percent and moved toward its lowest level in 62 years after a Deutsche Bank AG analyst downgraded the shares, saying they may be worthless in a year.
“Even if GM succeeds in averting a bankruptcy, we believe that the company’s future path is likely to be bankruptcy-like,” Deutsche Bank’s Rod Lache wrote today in a note. The New York analyst recommended selling the shares and cut his 12-month price target to zero. He previously advised holding the stock.
The decline shows mounting pessimism that a turnaround will succeed at the largest U.S. automaker amid the credit crisis and the worst sales market in at least 15 years. GM is petitioning the U.S. government for aid after saying last week it may not have enough cash to operate this year. A bankruptcy typically wipes out the value of a company’s shares.
Barclays Capital and Buckingham Research Group cut their price targets for GM to $1.
GM, based in Detroit, lost 99 cents, or 23 percent, to $3.37 at 2:45 p.m. in New York Stock Exchange composite trading. It fell as low as $3.02 in intraday trading, which would be the lowest close since Nov. 22, 1946, according to Global Financial Data in Los Angeles. Ford Motor Co. dropped 9 cents to $1.93.
Tags: Deutsche Bank, Economy, General Motors, GM, Henry Paulson, Stock Market, U.S., Wall Street
Worst slump since Great Depression: Bud Fields and his family in their home during the Great Depression in Alabama, 1935. Photo: Corbis
The warning underlines the fact that policymakers have failed to prevent the financial crisis from turning into a full-blown economic slump. It comes as world leaders agreed to hold a summit in New York billed as the “Bretton Woods meeting for the 21st century”.
In its major assessment of the global economy’s health, Deutsche Bank also warned that Britain is even more vulnerable than the US or the euro area, as it predicted that the powerhouses of India and China would fail to support the wider global economy through the downturn.
The banks’ economists Thomas Mayer and Peter Hooper said: “We now expect a major recession for the world economy over the year ahead, with growth in the industrial countries falling to its lowest level since the Great Depression and global growth falling to 1.2pc, its lowest level since the severe downturn of the early 1980s.”
According to the International Monetary Fund, global growth of anything less than 3pc constitutes a world recession. The warning was echoed by Richard Berner of Morgan Stanley, who said: “A global recession is now under way, and risks are still pointed to the downside for commodity prices and earnings.”
Tags: bailout, Canada, China, Depression, Deutsche Bank, Economy, Fed, Federal Reserve, France, George Bush, Germany, Government, IMF, India, Italy, Nicolas Sarkozy, Politics, Recession, Russia, U.K., U.N.
BERLIN: Only the state can restore trust to financial markets now, German Chancellor Angela Merkel was quoted as saying on Sunday amid reports that Berlin was about to unveil a huge rescue package for its banks.
“Only action by the state is capable of restoring the necessary trust,” Merkel was quoted as saying by the Bild am Sonntag weekly following talks on Saturday in France with President Nicolas Sarkozy.
“In this it is important that countries do not act unilaterally but that we coordinate at European and international level and then implement the measures within our national responsibilities,” Merkel said.
Tags: Angela Merkel, Banks, Deutsche Bank, Economy, financial crisis, France, Germany, Government, Nicolas Sarkozy, Politics
Government set to become biggest shareholder in top banks as Japanese weigh bid for Morgan Stanley
THE government will launch the biggest rescue of Britain’s high-street banks tomorrow when the UK’s four biggest institutions ask for a £35 billion financial lifeline.
The unprecedented move will make the government the biggest shareholder in at least two banks.
Royal Bank of Scotland (RBS), which has seen its market value fall to below £12 billion, is to ask ministers to underwrite a £15 billion cash call.
Halifax Bank of Scotland (HBOS), Britain’s biggest provider of mortgages, is seeking up to £10 billion.
Lloyds TSB, which is in the process of acquiring HBOS in a rescue merger, wants £7 billion, while Barclays needs £3 billion.
The scale of the fundraising could lead to trading at the London stock market being suspended. This would give time for the market to digest the impact of the moves.
Tags: AIG, Bank of England, Barclays, Citigroup, Credit Crisis, credit crunch, Deutsche Bank, Economy, G7, Goldman Sachs, Government, HBoS, HSBC, JPMorgan, Lehman Brothers, Lloyds TSB, Morgan Stanley, mortgage crisis, Mortgages, Politics, RBS, Stock Market, U.K.
Another top European bank is on the brink of collapse after a consortium of German financial institutions withdrew from a state-led rescue plan agreed two days ago.
Hypo Real Estate is the fifth German bank to be bailed out because of the credit crunch Photo: AP
Hypo Real Estate (HRE), the second largest mortgage lender in Germany, said the 35 billion euro (£27.3 billion) bail-out fell apart on Saturday.
The news is a fresh blow for the global financial system struggling to master an unprecedented crisis of confidence.
Hypo Real Estate was the fifth German bank to be bailed out in the wake of the credit market turmoil stemming from America.
Tags: Banks, Credit Crisis, credit crunch, Deutsche Bank, Economy, financial crisis, Hypo Real Estate, mortgage crisis, Mortgages
As banks look to shore up their balance sheets in the wake of the credit squeeze, Philip Aldrick asks whether it is all short-term trickery
Investors gather in New York’s financial district after the stock market crash of 1929, which heralded the onset of the Great Depression
‘We are in the midst of the worst financial crisis since the 1930s,” warns the eminent financier George Soros in his latest book, The New Paradigm for Financial Markets. It’s a rather extreme view, but the man who broke the Bank of England is not alone in his dark funk. At a recent event, one banker laced Soros’s sentiment with a little gallows humour, ruefully predicting “10 years of depression followed by a world war”.
Comparisons with the great crash of 1929 are inevitable and the parallels manifold. Then it was an over-inflated stock market that burst before wider economic malaise ushered in the Great Depression.
This time, in the words of Intermediate Capital managing director Tom Attwood, sub-prime was merely “a catalyst” for the inevitable pricking of the credit market bubble as “disciplines were bypassed in favour of loan book growth at almost any cost”. Again the talk is of recession, certainly in the US and possibly in the UK.
Perhaps the most intriguing parallel, though, is the crude attempt at self-preservation made by the investment trusts in 1929 and the banks now.
In the great crash, investment trusts with vast cross-holdings in each other tried to stem their collapse by buying up their own stock in what the economist JK Galbraith in his book, The Great Crash 1929, described as an act of “fiscal self-immolation”. At the time, “support of the stock of one’s own company seemed a bold, imaginative and effective course,” Galbraith wrote, but ultimately the trusts were just “swindling themselves”.
Modern economists have compared the trusts’ actions with what the banks are now doing. “They seem to be just papering over the cracks,” says Brendan Brown, chief economist at Mitsubishi UFJ Securities. Continue reading »
Tags: Bear Stearns, Citigroup, Depression, Deutsche Bank, Economy, financial crisis, George Soros, Inflation, mortgage crisis, Mortgages, Recession, Stock Market, U.K., U.S., UBS, War
Germany and other industrialized nations are desperately trying to brace themselves against the threat of a collapse of the global financial system. The crisis has now taken its toll on the German economy, where the weak dollar is putting jobs in jeopardy and the credit crunch is paralyzing many businesses.
A trader reacts in front of the DAX board at the Frankfurt stock exchange.The Bundesbank, Germany’s central bank, doesn’t like to see its employees working too late, and it expects even senior staff members to be headed home by 8 p.m. On weekends, employees seeking to escape the confines of their own homes are required to sign in at the front desk and are accompanied to their own desks by a security guard. Sensitive documents are kept in safes in many offices, and a portion of Germany’s gold reserves is stored behind meter-thick, reinforced concrete walls in the basement of a nearby building. In this environment, working overtime is considered a security risk.But the ordinary working day has been in disarray in recent weeks at the Bundesbank headquarters building, a gray, concrete box in Frankfurt’s Ginnheim neighborhood, where the crisis on international financial markets has many employees working late, even on weekends. Continue reading »
Tags: Airbus, Bernanke, BMW, CEO, Commerzbank, Depression, Deutsche Bank, Dollar, EADS, Economy, fear, Fed, financial system, Fortress, Germany, Heidelberg Cement, Inflation, Josef Ackermann, Meltdown, Norbert Reithofer, Nouriel Roubini, Pro 7, Recession, Sat.1, Spiegel
Pressure is mounting on central banks in the Gulf to fight surging inflation when they meet on Wednesday by severing the link between their currencies and the tumbling US dollar.Officials in Qatar and the United Arab Emirates have denied rumours of an imminent decoupling, but investors are betting on reform and are rushing to buy local currencies as investment banks issue fresh calls for revaluation. Continue reading »
Tags: decoupling, Deutsche Bank, Dollar, Emirates Bank, gulf states, Inflation, Middle East, United Arab Emirates
