The reputational risks surrounding Deutsche Bank have grown and it still has some way to go to win back public trust and prove it can overhaul its corporate culture, the bank's two chief executives said on Wednesday.
Reuters reports that the bank is facing an array of investigations into the conduct of its employees and a jump in litigation costs was partly responsible for a surprise $1.37bn fourth-quarter loss that has heaped more pressure on Anshu Jain and Juergen Fitschen.
'We know that here we have something to prove to you', Fitschen told reporters at the bank's annual news conference in Frankfurt. 'We have realised that the reputational risk has become more and more significant'.
Deutsche Bank paid about $2.85bn in fines in December, but fresh investigations - including one into possible manipulation of the $5.3tril-a-day foreign exchange market - have led analysts and investors to forecast an additional $1.9bn to $2.7bn in settlement costs for 2014 and 2015.
The bank has moved to shake up corporate practices, particularly at its investment banking operations in London and New York, turning down deals viewed as too risky, deferring bonuses for dealers and giving them less leeway on trades.
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