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