Bloomberg News reports that the bank recorded $1.35bn of legal expenses in the second quarter, primarily related to 'legacy' U.S. mortgage matters, Deutsche Bank said in a statement on Thursday. 'We anticipate litigation to remain a burden in the coming quarters', the company said.
Banks are paying record fines for manipulating markets, helping some clients break the law and not adequately disclosing the risk of financial products. While Deutsche Bank has settled some of the biggest known cases against the company, future costs may make it harder for co-Chief Executive Officer John Cryan to build the lender’s capital levels.
'This litigation isn’t going to end any time soon, it’s going to stretch on for years', said Lutz Roehmeyer, who counts Deutsche Bank shares among the $1.1bn he manages at LBB Invest in Berlin. 'The bank wants to get this off the table and they can be more radical in their approach'.
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