Deutsche Bank has promised to redouble its efforts in restructuring the company. Talks with the US Justice department over 14 billion dollar fine still in progress. Surprising quarterly profit news fail to dispel cloud of uncertainty.
John Cryan, chief of Deutsche Bank. has pledged in a statement on Thursday that the company will redouble its restructuring efforts and warned that it is facing difficult times. The bank posted earlier today a surprising quarterly profit, having benefited from a rebound in bond trading. However these good news did not succeed in dispersing the cloud of uncertainty that has been hovering over Deutsche bank since the revelation that Germany’s one-time flagship lender may have to pay a multi-billion dollar fine to the US Justice Department. Negotiations regarding the fine inconclusive for the moment.
The news of the fine the company faces had significantly shot clients’ confidence in Deutsche Bank as is evidenced by the declines in many of its branch business such as retail and wealth management business and its so-called global markets trading business. It remains unknown whether Deutsche Bank will have to pay the initial 14 billion the Justice Department demanded and how much time it will take once the fine has been payed for the company to restore clients; confidence in it.