Deutsche hit by massive legal costs

Deutsche Bank Headquarters

Deutsche Bank has said second-quarter profit fell 49% after it set aside about $796m to cover legal costs.

Bloomberg News reports that net income in the three months through June dropped to $443m from $870m in the same period a year earlier, the bank said in a statement on its website Tuesday.

Deutsche Bank co-Chief Executive Officer Anshu Jain is spending cash defending litigation and regulatory probes that stretch from the U.S. housing market to allegations the company sought to rig interbank lending rates, or Libor. The firm failed to benefit from the higher investment banking revenue that’s buoyed earnings at competitors in the U.S.

'Litigation is an issue for Deutsche Bank and other investment banks', Andrew Stimpson, an analyst with Keefe, Bruyette & Woods in London said in a phone interview Monday. 'They still face costs in investment banking'.

Hit the link below to access the complete Bloomberg article:

Deutsche Bank Profit Unexpectedly Falls on Legal Costs

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