Jan 14

Deutsche Bank has also difficulties to finance the Postbank acquisition, that is why Deutsche Post will buy a stake – around 10% – in Deutsche Bank.

Interesting article in German:

Indirekte Teilverstaatlichung: Post soll Ackermann retten
(Financial Times Deutschland)
(
Indirect Partial Nationalization: Post to Save Ackermann)

More:

Deutsche Bank, Deutsche Post Adjust Postbank Deal Terms (Dow Jones)
Deutsche Post to Take 8% Deutsche Bank Stake in Postbank Deal (Bloomberg)
D.Post’s D.Bank stake not lasting solution-official (Reuters)


Deutsche Bank Reports EU4.8 Billion Loss on Trading

First Annual Loss in More Than 50 Years


Pedestrians pass a Deutsche Bank AG branch with shopping bags in Berlin on Oct. 20, 2008. Photographer: Hannelore Foerster/Bloomberg News

Jan. 14 (Bloomberg) — Deutsche Bank AG, Germany’s biggest bank, reported a record loss of about 4.8 billion euros ($6.3 billion) in the fourth quarter after the worst financial crisis since the Great Depression pummeled debt and equity trading.

The bank fell as much as 13 percent in Frankfurt trading. The loss, which compares with a profit of about 1 billion euros a year earlier, also reflects provisions for debt backed by bond insurers and “substantial injections” of cash into money market funds, the Frankfurt-based bank said today.

Deutsche Bank has “scaled back or exited trading strategies most affected by market turbulence,” Chief Executive Officer Josef Ackermann said in a statement. The German bank lost about $1 billion from bad bets involving bonds hedged by credit-default swaps in the quarter, plus $500 million trading equities, two people with knowledge of the matter said this week. The company reported its first annual loss in more than 50 years.

“The enormous fourth-quarter and full-year loss is a shock to investors,” Michael Seufert, an analyst at NordLB in Hanover with a “sell” rating on Deutsche Bank, wrote in a note to clients today. “The process of reducing risks and scaling down the balance sheet is proving to be very painful.”

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Nov 10

BONN (Reuters) – Deutsche Post will spend more than planned and cut an additional 9,500 jobs to turn around its U.S. express business, which has been hit by the global economic crisis and hurt third-quarter earnings.

Additional restructuring costs would likely lead to a full-year group net loss, the company said on Monday.

Sluggish consumer spending and shrinking investments by businesses are hurting shippers around the world, with the United States being hit hardest. Retail sales there dropped for a third consecutive month in September, posting their biggest decline in more than three years.

To battle sliding demand in the United States, Deutsche Post now planned to shut down its domestic U.S. express business and focus on international shipping there. It would spend $3.9 billion on restructuring, $1.9 billion more than previously planned.

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