Deutsche Bank Executives Face a Tough Turnaround Plan as Investors Lose Confidence
Shares and bonds of Germany's largest lender Deutsche Bank AG took a plunge over investors concern regarding the bank's capital and funding levels.
It's a difficult task that lies ahead of the Deutsche Bank bosses to pull up the bank's shares from its thirty year lows. They need to assure investors about its capital levels and other options to actually trigger a recovery in lost confidence. After the financial crisis, Germany's flagship lender did not get a chance to bouncing back and trailed behind its rivals. It also had to pay billions of dollars to settle legal disputes and fines. Stricter regulations, painful restructuring, all added to the bank's woes eating on its profitability. The cost connected to these issues resulted last month, in the bank posting its largest annual loss ever recorded.
Since the year began, shares of Deutsche Bank have dipped approximately forty percent adding to a slump in the European banking sector.
Concerned shareholders worry about the management's ability to fruitfully execute an announced two year turnaround plan. Last year in October, the bank announced a turnaround plan keeping a weakening global economic outlook in the background along with negative interest rates.
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