deutsche bank new york stock exchange

Deutsche Bank Trust Company Americas (DBTCA), the broker-dealer and lead bank subsidiaries of DB USA, and through DBAG NY, our New York. Deutsche Bank hires Richard Walker, former top official from Securities and Exchange Commission, as general counsel of its corporate and. Deutsche Bank Ag Instrument Exchange NYSE: Instrument Symbol DB-N. 12.24 USD. deutsche bank new york stock exchange

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Deutsche Bank to move New York headquarters from Wall Street

Deutsche Bank AG will shift its New York headquarters from Wall Street to a location midtown, at a time when Germany’s largest bank is scaling back its US operations.

The bank will relocate to One Columbus Circle from 60 Wall Street, according to an internal memo to employees.

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[ Deutsche Bank to focus on Europe in sweeping overhaul of its investment bank ]

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The move is expected to start in the third quarter of 2021 and will be completed in 2022, according to a source familiar with the matter.

The new location will consolidate the bank’s New York presence and would reduce its commercial presence in the city by 30 per cent, according to the memo.

Chief Executive Officer Christian Sewing said last month that the bank would cut back bond and equities trading and would invest in German retail banking and asset management in Europe.

The bank is expected to cut around 1,000 jobs or 10 per cent of its workforce in the United States, Reuters reported last month.

Источник: https://www.thenationalnews.com/business/banking/deutsche-bank-to-move-ny-headquarters-from-wall-street-1.727397

Deutsche Bank to return 5,000 staff to NYC, Americas CEO says

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Home / Industry / Banking /  Deutsche Bank to return 5,000 staff to NYC, Americas CEO says

1 min read.Updated: 28 Sep 2021, 10:45 PM ISTBloomberg

Many of the returning staff will still have the option of more flexible working arrangements, Christiana Riley, chief executive officer of Deutsche Bank Americas says

Deutsche Bank AG plans to return 5,000 workers to New York City over the next six months.

Many of the returning staff will still have the option of more flexible working arrangements, Christiana Riley, chief executive officer of Deutsche Bank Americas, said in an interview from the Frankfurt-based company’s new U.S. headquarters Tuesday.  

“The demise of New York is vastly overstated," Riley said. “We’re thrilled to see the ecosystem in New York coming back to life."

Deutsche Bank said in a report to clients earlier this month that workers in many industries are feeling isolated from their colleagues, and could be developing health problems related to inadequate remote-work setups. The firm now expects offices in major financial hubs such as London and New York City to refill quickly, pointing to increased ridership on public transit systems in both cities as one early sign that workers are getting back to their desks.  

In the wide-randing interview, Riley said Deutsche Bank sees opportunities for growth following a restructuring of its core businesses. The bank now plans to expand organically in the U.S., not through acquisitions, a strategy Riley partly attributed to high valuations. After a period of job cuts, downsizing its investment-banking business and revamping management, the firm expects to be able to expand its market share in the U.S., she said.

“We made difficult decisions around shedding businesses that weren’t successful, weren’t profitable for us in this market," Riley said. “We’ve got a spectrum of businesses across the fixed-income and credit-origination space" that will bring value to our clients.

Riley also said Deutsche Bank’s market share of the ESG debt issuance market has doubled since 2019. 

 

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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Источник: https://www.livemint.com/industry/banking/deutsche-bank-to-return-5-000-staff-to-nyc-americas-ceo-says-11632848674927.html

Justice News

Deutsche Bank Aktiengesellschaft (Deutsche Bank or the Company) has agreed to pay more than $130 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) and a separate investigation into a commodities fraud scheme.

The resolution includes criminal penalties of $85,186,206, criminal disgorgement of $681,480, victim compensation payments of $1,223,738, and $43,329,622 to be paid to the U.S. Securities & Exchange Commission in a coordinated resolution.

Deutsche Bank is a multi-national financial services company headquartered in Frankfurt, Germany. The charges arise out of a scheme to conceal corrupt payments and bribes made to third-party intermediaries by falsely recording them on Deutsche Bank’s books and records, as well as related internal accounting control violations, and a separate scheme to engage in fraudulent and manipulative commodities trading practices involving publicly-traded precious metals futures contracts. 

Deutsche Bank entered into a three-year deferred prosecution agreement (DPA) with the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS) and with the U.S. Attorney’s Office for the Eastern District of New York. The criminal information was filed today in the Eastern District of New York charging Deutsche Bank with one count of conspiracy to violate the books and records and internal accounting controls provisions of the FCPA and one count of conspiracy to commit wire fraud affecting a financial institution in relation to the commodities conduct.

“Deutsche Bank engaged in a seven-year course of conduct, during which it failed to implement a system of internal accounting controls regarding the use of company funds and falsified its books and records to conceal corrupt and improper payments,” said Acting Deputy Assistant Attorney General Robert Zink of the Justice Department’s Criminal Division. “Separately, Deutsche Bank traders on three continents sought to manipulate our public financial markets through fraud for five years. This resolution exemplifies the department’s commitment to help ensure that publicly traded companies devise and implement appropriate and proper systems of internal accounting controls and maintain accurate and truthful corporate documentation. It also stands as an example of the department’s efforts to police the public U.S. markets so that all may continue to trust, and rely upon, the integrity of our public financial systems.”

“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” stated Acting U.S. Attorney Seth D. DuCharme of the Eastern District of New York. “This office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”

“The U.S. Postal Inspection Service takes pride in investigating complex fraud and corruption cases that impact American investors,” said Inspector in Charge Delany De Léon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group. “This type of deceptive activity can cause immeasurable economic losses to competitive markets around the world. The combined efforts of our partners at the FBI and Department of Justice helped to bring today’s significant action which illustrates our efforts to protect the United States and the international marketplace.”

The FCPA Case

According to admissions and court documents, between 2009 and 2016, Deutsche Bank, acting through its employees and agents, including managing directors and high-level regional executives, knowingly and willfully conspired to maintain false books, records, and accounts to conceal, among other things, payments to a business development consultant (BDC) who was acting as a proxy for a foreign official and payments to a BDC that were actually bribes paid to a decisionmaker for a client in order to obtain lucrative business for the bank. In some instances, Deutsche Bank made payments to BDCs that were not supported by invoices or evidence of any services provided. In other cases, Deutsche Bank employees created or helped BDC’s create false justifications for payments.      

In relation to a Saudi BDC, Deutsche Bank admitted that its employees conspired to contract with a company owned by the wife of a client decisionmaker to facilitate bribe payments of over $1 million to the decisionmaker. Deutsche Bank approved the BDC relationship despite Deutsche Bank employees knowing about the relationship between the Saudi BDC and the decisionmaker, and approved the corrupt payments despite Deutsche Bank employees openly discussing the need to pay the Saudi BDC in order to incentivize her husband to continue to do business with Deutsche Bank. In requesting approval of one payment, Deutsche Bank employees cautioned that the “client and [the Saudi BDC] are intimately linked and . . . any cessation of payment to the [the Saudi BDC] will certainly prompt a significant outflow of [business]” from the client.

Deutsche Bank also contracted with an Abu Dhabi BDC to obtain a lucrative transaction, despite Deutsche Bank employees knowing that the Abu Dhabi BDC lacked qualifications as a BDC, other than his family relationship with the client decisionmaker, and that the Abu Dhabi BDC was in fact acting as proxy for the client decisionmaker. Deutsche Bank paid the Abu Dhabi BDC over $3 million without invoices.

By agreeing to misrepresent the purpose of payments to BDCs and falsely characterizing payments to others as payments to BDCs, Deutsche Bank employees conspired to falsify Deutsche Bank’s books, records, and accounts, in violation of the FCPA. Additionally, Deutsche Bank employees knowingly and willfully conspired to fail to implement internal accounting controls in violation of the FCPA by, among other things, failing to conduct meaningful due diligence regarding BDCs, making payments to certain BDCs who were not under contract with Deutsche Bank at the time, and making payments to certain BDCs without invoices or adequate documentation of the services purportedly performed.

Deutsche Bank will pay a total criminal penalty of $79,561,206 in relation to the FCPA scheme. In a related matter with the U.S. Securities & Exchange Commission, Deutsche Bank will also pay $43,329,622 in disgorgement and prejudgment interest.

The Commodities Fraud Case

According to admissions and court documents, between 2008 and 2013, Deutsche Bank precious metals traders engaged in a scheme to defraud other traders on the New York Mercantile Exchange Inc. and Commodity Exchange Inc., which are commodities exchanges operated by the CME Group Inc. On numerous occasions, traders on Deutsche Bank’s precious metals desk in New York, Singapore, and London placed orders to buy and sell precious metals futures contracts with the intent to cancel those orders before execution, including in an attempt to profit by deceiving other market participants through injecting false and misleading information concerning the existence of genuine supply and demand for precious metals futures contracts.

On Sept. 25, 2020, a Chicago federal jury found two former Deutsche Bank precious metals traders, James Vorley, 42, of the United Kingdom, and Cedric Chanu, 40, of France and the United Arab Emirates, guilty of wire fraud affecting a financial institution for their respective roles in the commodities scheme. A third former Deutsche Bank trader, David Liew, 35, of Singapore, pleaded guilty on June 1, 2017, to conspiracy to commit wire fraud affecting a financial institution and spoofing. A fourth former Deutsche Bank trader, Edward Bases, 58, of New Canaan, Connecticut, was charged in a third superseding indictment on Nov. 12, 2020, and awaits trial on fraud and conspiracy charges. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Deutsche Bank has agreed to pay a total criminal amount of $7,530,218 in relation to the commodities scheme. This amount includes criminal disgorgement of $681,480, victim compensation payments of $1,223,738, and a criminal penalty of $5,625,000, which will be fully credited against Deutsche Bank’s payment of a civil monetary penalty of $30 million to the U.S. Commodity Futures Trading Commission in January 2018 in connection with substantially the same commodities conduct.

The department reached this resolution with Deutsche Bank based on a number of factors, including the Company’s failure to voluntarily disclose the conduct to the department and the nature and seriousness of the offense, which included corrupt payments, willful violations of the FCPA accounting provisions, and commodities trading violations in three countries. Deutsche Bank received full credit for its cooperation with the department’s investigations and for its significant remediation. Penalties associated with both the FCPA and wire fraud conspiracies reflect a discount of 25 percent off the middle of the otherwise-applicable U.S. Sentencing Guidelines fine range, to account for Deutsche Bank’s 2015 resolution in connection with its manipulation of the London Interbank Offered Rate.  

The FCPA investigation is being conducted by the U.S. Postal Inspection Service, and is being prosecuted by the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section, and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys Katherine Nielsen, Elizabeth S. Boison and Nikhila Raj, and Assistant U.S. Attorneys Alixandra Smith and Whitman Knapp. The Justice Department’s Office of International Affairs provided assistance in this case.

The commodities case is being investigated by the FBI’s New York Field Office, and is being prosecuted by the Fraud Section. Deputy Chief Brian R. Young, Assistant Chief Avi Perry, and Trial Attorney Leslie S. Garthwaite of the Fraud Section are prosecuting the case.

The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.

MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

Individuals who believe that they may be a victim in the commodities case should visit the Fraud Section’s Victim Witness website for more information.

Источник: https://www.justice.gov/opa/pr/deutsche-bank-agrees-pay-over-130-million-resolve-foreign-corrupt-practices-act-and-fraud

European shares closed slightly lower on Monday as a massive restructuring plan announced by Deutsche Bank weighed on the wider financial sector and markets remained subdued on dampened hopes of a hefty rate cut by the US central bank.

Upbeat US jobs data last week put off bets that the US Federal Reserve would give in to calls for aggressive policy easing.

“Ordinarily, a strong set of employment data would lift global equity sentiment, but seeing as a large portion of the rally was driven by the belief that the Federal Reserve will cut rates this month, equity markets are broadly lower today,” CMC Markets analyst David Madden said.

The pan-European Stoxx 600 index ended the session down 0.05 per cent at 389.9.

DUBLIN

The Iseq index dropped 0.4 per cent to 6,315.83, with Bank of Ireland off 3.9 per cent at €4.60 and AIB down 0.4 per cent at €3.67. However, Permanent TSB stood out as a bright feature, rising 5.1 per cent to €1.32.

Property plays in Dublin were broadly lower, amid concerns over the outlook for house prices. Cairn Homes dipped 1.3 per cent to €1.19 and Glenveagh Properties declined by 0.9 per cent to 75c.

“House price inflation has slowed due to Central Bank of Ireland mortgage rules, but the pressure of housing demand on supply has not, evident in a 7 per cent rise in rents through 2018,” said Conall Mac Coille, an economist with Davy.

Providence Resources added 3.7 per cent to 11c on news that $10 million due from Chinese backer APEC Energy Enterprises to its Barryroe project off the Cork coast had come through.

LONDON

UK blue-chip index edged 0.1 per cent lower in its third session of losses – its longest losing streak in two months, while the midcaps fell 0.4 per cent as a weaker sterling also weighed on its domestically-exposed constituents.

Imperial Brands helped contain the losses on the blue-chip index, adding 2.2 per cent after the tobacco company announced plans for a £200 million buyback and said it would revise its dividend policy. Rival British American Tobacco rose 1.5 per cent.

Losses in the blue-chip index were spread across sectors, with pharmaceutical companies and banks most hit.

Miners, however, snapped a three-day losing streak on the back of higher copper prices. The sub-index had slipped last week after China’s top steel mills formed a group to probe a record surge in ore prices.

British Airways owner IAG lost 1.4 per cent on news that it was facing a record £183.4 million fine from the UK’s Information Commissioner’s Office for the theft of data from 500,000 customers from its website last year.

EUROPE

Deutsche Bank erased earlier gains to fall 5.4 per cent to €6.79 after the German lender unveiled plans to restructure its business. Some analysts said challenges for the bank remain and noted the new profitability targets may be too ambitious.

Spanish utilities group Enagas dropped almost 5 per cent after influential brokerages RBC, JP Morgan and Kepler Cheuvreux each downgraded their price targets for the company’s stock.

NEW YORK

US stocks were lower in early afternoon trading, pressured by a more than 2 per cent drop in shares of Apple and as investors toned down expectations of an aggressive interest rate cut by the Federal Reserve later this month.

Apple was hit as Rosenblatt Securities downgraded the iPhone maker’s shares to sell from neutral, and said it expected the company to face “fundamental deterioration” in the next six to 12 months.

The major sectors trading higher were energy, up on higher oil prices, consumer discretionary and real estate.

Boeing shares fell after Saudi Arabian budget airline flyadeal said it would not proceed with a provisional $5.9 billion order for the planemaker’s grounded 737 MAX aircraft, instead opting for a fleet of Airbus A320 jets. – Additional reporting Reuters

Источник: https://www.irishtimes.com/business/economy/european-shares-dip-as-deutsche-bank-overhaul-weighs-on-banks-1.3950589

Deutsche Bank AG

Deutsche Bank AG engages in the provision of corporate banking and investment services. It operates through the following segments: Corporate Bank, Investment Bank, Private Bank, Asset Management, Capital Release Unit, and Corporate and Other. The Corporate Bank segment includes the global transaction bank as well as the German commercial clients division. The Investment Bank segment consists of origination and advisory businesses as well as fixed income currency sales and trading. The Private Bank segment comprises the Private Bank Germany, private and commercial business international, and wealth management business units. The Asset Management segment provides investment solutions to individual investors and institutions through the DWS brand. The Capital Release Unit segment covers the equities sales and trading business. The Corporate and Other segment includes revenues, costs, and resources that are held centrally. The company was founded by Adelbert Delbrück on March 10, 1870 and is headquartered in Frankfurt, Germany.

Источник: https://www.marketwatch.com/investing/stock/db

European shares closed slightly lower on Monday as a massive restructuring plan announced by Deutsche Bank weighed on the wider financial sector and markets remained subdued on dampened hopes of a hefty rate cut by the US central bank.

Upbeat US jobs data last week put off td ameritrade los angeles locations that the US Federal Reserve would give in to calls for aggressive policy easing.

“Ordinarily, a strong set of employment data would lift global equity sentiment, but seeing as a large portion of the rally was driven by the belief that the Federal Reserve will cut rates this month, equity markets are broadly lower today,” CMC Markets analyst David Madden said.

The pan-European Stoxx 600 index ended the session down 0.05 per cent at deutsche bank new york stock exchange.

DUBLIN

The Iseq index dropped 0.4 per cent to 6,315.83, with Bank of Ireland off 3.9 per cent at €4.60 and AIB down 0.4 per cent at €3.67. However, Permanent TSB stood out as a bright feature, rising 5.1 per cent to €1.32.

Property plays in Dublin were broadly lower, amid concerns over the outlook for house prices. Cairn Homes dipped 1.3 per cent to €1.19 and Glenveagh Properties declined by 0.9 per cent to 75c.

“House price inflation has slowed due to Central Bank of Ireland mortgage rules, but the pressure of housing demand on supply has not, evident in a 7 per cent rise in rents through 2018,” said Conall Mac Coille, an economist with Davy.

Providence Resources added 3.7 per cent to 11c on news that $10 million due from Chinese backer APEC Energy Enterprises to its Barryroe project off the Cork coast had come through.

LONDON

UK blue-chip index edged 0.1 per cent lower in its third session of losses – deutsche bank new york stock exchange longest losing streak in two months, while the midcaps fell 0.4 per cent as a weaker sterling also weighed on its domestically-exposed constituents.

Imperial Brands helped contain the losses on the blue-chip index, adding 2.2 per cent after the tobacco company announced plans for a £200 million buyback and said it would revise its dividend policy. Rival British American Tobacco rose 1.5 per cent.

Losses in the blue-chip index were spread across sectors, with pharmaceutical companies and banks most hit.

Miners, however, snapped a three-day losing streak on the back of higher copper prices. The sub-index had slipped last week after China’s top steel mills formed a group to probe a record surge in ore prices.

British Airways owner IAG lost 1.4 per cent on news that it was facing a record £183.4 million fine from the UK’s Information Commissioner’s Office for the theft of data from 500,000 customers from its website last year.

EUROPE

Deutsche Bank erased earlier gains to fall 5.4 per cent to €6.79 after the German lender unveiled plans to restructure its business. Some analysts said challenges for the bank remain and noted the new profitability targets may be too ambitious.

Spanish utilities group Enagas dropped almost 5 per cent after influential brokerages RBC, JP Morgan and Kepler Cheuvreux each downgraded their price targets for the company’s stock.

NEW Deutsche bank new york stock exchange

US stocks were lower in early afternoon trading, pressured by a more than 2 per cent drop in shares of Apple and as investors toned down expectations of an aggressive interest rate cut by the Federal Reserve later this month.

Apple was hit as Rosenblatt Securities downgraded the iPhone maker’s shares to sell from neutral, and said it expected the company to face “fundamental deterioration” in the next six to 12 months.

The major sectors trading higher were energy, up on higher oil prices, consumer discretionary and real estate.

Boeing shares fell after Saudi Arabian budget airline flyadeal said it would not proceed with a provisional $5.9 billion order for the planemaker’s grounded 737 MAX aircraft, instead opting for a fleet of Airbus A320 jets. – Additional reporting Reuters

Источник: https://www.irishtimes.com/business/economy/european-shares-dip-as-deutsche-bank-overhaul-weighs-on-banks-1.3950589

Justice News

Deutsche Bank Aktiengesellschaft (Deutsche Bank or the Company) has agreed to pay more than $130 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) and a separate investigation into a commodities fraud scheme.

The resolution includes criminal penalties of $85,186,206, criminal disgorgement of $681,480, victim compensation payments of $1,223,738, and $43,329,622 to be paid to the U.S. Securities & Exchange Commission in a coordinated resolution.

Deutsche Bank is a multi-national financial services company headquartered in Frankfurt, Germany. The charges arise out of a scheme to conceal corrupt payments and bribes made to third-party intermediaries by falsely recording them on Deutsche Bank’s books and records, as well as related internal accounting control violations, and a separate scheme to engage in fraudulent and manipulative commodities trading practices involving publicly-traded precious metals futures contracts. 

Deutsche Bank entered into a three-year deferred prosecution agreement (DPA) with the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS) and with the U.S. Attorney’s Office for the Eastern District of New York. The criminal information was filed today in the Eastern District of New York charging Deutsche Bank with one count of conspiracy to violate the books and records and internal accounting controls provisions of the FCPA and one count of conspiracy to commit wire fraud affecting a financial institution in relation to the commodities conduct.

“Deutsche Bank engaged in a seven-year course of conduct, during which it failed to implement a system of internal accounting controls regarding the use of company funds and falsified its books and records to conceal corrupt and improper payments,” said Acting Deputy Assistant Attorney General Robert Zink of the Justice Department’s Criminal Division. “Separately, Deutsche Bank traders on three continents sought to manipulate our public financial markets through fraud for five years. This resolution exemplifies the department’s commitment to help ensure that publicly traded companies devise and implement appropriate and proper systems of internal accounting controls and maintain accurate and truthful corporate documentation. It also stands as an example of the department’s efforts to police the public U.S. markets so that all may continue to trust, and rely upon, the integrity of our public financial systems.”

“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” stated Acting U.S. Attorney Seth D. DuCharme of the Eastern District of New York. “This office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”

“The U.S. Postal Inspection Service takes pride in investigating complex fraud and corruption cases that impact American investors,” said Inspector in Charge Delany De Léon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group. “This type of deceptive activity can cause immeasurable economic losses to competitive markets around the world. The combined efforts of our partners at the FBI and Department of Justice helped to bring today’s significant action which illustrates our efforts to protect the United States and the international marketplace.”

The FCPA Case

According to admissions and court documents, between 2009 and 2016, Deutsche Hum bewafa hargiz na the old song mp3 download, acting through its employees and agents, including managing directors and high-level regional executives, knowingly and willfully conspired to maintain false books, records, and accounts to conceal, among other things, payments to a business development consultant (BDC) who was acting as a proxy for a foreign official and payments to a BDC that were actually bribes paid to a deutsche bank new york stock exchange for a client in order to obtain lucrative business for the bank. In some instances, Deutsche Bank made payments to BDCs that were not supported by invoices or evidence of any services provided. In other cases, Deutsche Bank employees created or helped BDC’s create false justifications for payments.      

In relation to a Saudi BDC, Deutsche Bank admitted that its employees conspired to contract with a company owned by the wife of a client decisionmaker to facilitate bribe payments of over $1 million to the decisionmaker. Deutsche Bank approved the BDC relationship despite Deutsche Bank employees knowing about the relationship between the Saudi BDC and the decisionmaker, and approved the corrupt payments despite Deutsche Bank employees openly discussing the need to pay the Saudi BDC in order to incentivize her husband to continue to do business with Deutsche Bank. In requesting approval of one payment, Deutsche Bank employees cautioned that the “client and [the Saudi BDC] are intimately linked and. . any cessation of payment to the [the Saudi BDC] will certainly prompt a significant outflow of [business]” from the client.

Deutsche Bank also contracted with an Abu Dhabi BDC to obtain a lucrative transaction, despite Deutsche Bank employees knowing that the Abu Dhabi BDC lacked qualifications as a BDC, other than his family relationship with the client decisionmaker, and that the Abu Dhabi BDC was in fact acting as proxy for the client decisionmaker. Deutsche Bank paid the Abu Dhabi BDC over $3 million without invoices.

By agreeing to misrepresent the purpose of payments to BDCs and falsely characterizing payments to others as payments to BDCs, Deutsche Bank employees conspired to falsify Deutsche Bank’s books, records, and accounts, in violation of the FCPA. Additionally, Deutsche Bank employees knowingly and willfully conspired to fail to implement internal accounting controls in violation of the FCPA by, among other things, failing to conduct meaningful due diligence regarding BDCs, making payments to certain BDCs who were not under contract with Deutsche Bank at the time, and making payments to certain BDCs without invoices or adequate documentation of the services purportedly performed.

Deutsche Bank will pay a total criminal penalty of $79,561,206 in relation to the FCPA scheme. In a related matter with the U.S. Securities & Exchange Commission, Deutsche Bank will also pay $43,329,622 in disgorgement and prejudgment interest.

The Commodities Fraud Case

According to admissions and court documents, between 2008 and 2013, Deutsche Bank precious metals traders engaged in a scheme to defraud other traders on the New York Mercantile Exchange Inc. and Commodity Exchange Inc., which are commodities exchanges operated by the CME Group Inc. On numerous occasions, traders on Deutsche Bank’s precious metals desk in New York, Singapore, and London placed orders to buy and sell precious metals futures contracts with the intent to cancel those orders before execution, including in an attempt to profit by deceiving other market participants through injecting false and misleading information concerning the existence of genuine supply and demand for precious metals futures contracts.

On Sept. 25, 2020, a Chicago federal jury found two former Deutsche Bank precious metals traders, James Vorley, 42, of the United Kingdom, and Cedric Chanu, 40, of France and the United Arab Emirates, guilty of wire fraud affecting a financial institution for their respective roles in the commodities scheme. A third former Deutsche Bank trader, David Liew, 35, of Singapore, pleaded guilty on June 1, 2017, to checking account routing number and account number to commit wire fraud affecting a financial institution and spoofing. A fourth former Deutsche Bank trader, Edward Bases, 58, of New Canaan, Connecticut, was charged in a third superseding indictment on Nov. 12, 2020, and awaits trial on fraud and conspiracy charges. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Deutsche Bank has agreed to pay a total criminal amount of $7,530,218 in relation to the commodities scheme. This amount includes criminal disgorgement of $681,480, victim compensation payments of $1,223,738, and a criminal penalty of $5,625,000, which will be fully credited against Deutsche Bank’s payment of a civil monetary penalty of $30 million to the U.S. Commodity Futures Trading Commission in January 2018 in connection with substantially the same commodities conduct.

The department reached this resolution with Deutsche Bank based on a number of factors, including the Company’s failure to voluntarily disclose the conduct to the department and the nature and seriousness of the offense, which included corrupt payments, willful violations of the FCPA accounting provisions, and commodities trading violations in three countries. Deutsche Bank received full credit for its cooperation with the department’s investigations and for its significant remediation. Penalties associated with both the FCPA and wire fraud conspiracies reflect a discount of 25 percent off the middle of the otherwise-applicable U.S. Sentencing Guidelines fine range, to account for Deutsche Deutsche bank new york stock exchange 2015 resolution in connection with its manipulation of the London Interbank Offered Rate.  

The FCPA investigation is being conducted by the U.S. Postal Inspection Service, and is being prosecuted by the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section, and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys Katherine Nielsen, Elizabeth S. Boison and Nikhila Raj, and Assistant U.S. Attorneys Alixandra Smith and Whitman Knapp. The Justice Department’s Office of International Affairs provided assistance in this case.

The commodities case is being investigated by the FBI’s New York Field Office, and is being prosecuted by the Fraud Section. Deputy Chief Brian R. Young, Assistant Chief Avi Perry, and Trial Attorney Leslie S. Garthwaite of the Fraud Section are prosecuting the case.

The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.

MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

Individuals who believe that they may be a victim in the commodities case should visit the Fraud Section’s Victim Witness website for more information.

Источник: https://www.justice.gov/opa/pr/deutsche-bank-agrees-pay-over-130-million-resolve-foreign-corrupt-practices-act-and-fraud

Deutsche Bank AG (USA)

About Deutsche Bank AG (USA)

Deutsche Bank AG is a Germany-based investment bank and financial services company. The Company offers a range of investment, financial and related deutsche bank new york stock exchange and services to private individuals, corporate entities and institutional clients. Its business activities are divided into three segments: Corporate & Investment Bank (CIB), which offers investment and transaction banking products and services for corporate and institutional clients; First bank aspen colorado & Commercial Bank (PCB), which provides private, corporate and wealth management clients with a broad range of products from standard banking services to individual investment and financing advice; and Asset Management (AM), whose investment capabilities span both active and passive strategies and an array of asset classes, including equities, fixed income, real estate and sustainable investments.

Executive Leadership

Paul Achleitner

Independent Chairman of the Supervisory Board

Christian Sewing

Chairman of the Management Board, Chief Executive Officer

Karl von Rohr

President, Member of the Management Board

Detlef Polaschek

Deputy Chairman of the Supervisory Board, Employee Representative

James von Moltke

Chief Financial Officer, Member of the Management Board

Key Stats

4.00 mean rating - 1 analysts

Revenue (MM, EUR)
EPS (EUR)

Price To Earnings (TTM)

12.37

Price To Sales (TTM)

0.85

Price To Book (MRQ)

0.35

Price To Cash Flow (TTM)

--

Total Debt To Equity (MRQ)

333.98

LT Debt To Equity (MRQ)

324.08

Return on Investment (TTM)

--

Return on Equity (TTM)

0.18
Источник: https://www.reuters.com/companies/DB.N

Stocks and oil prices plunged Friday after health officials in South Africa said they have detected a new coronavirus variant linked to a spike in COVID-19 cases. 

The new variant, known among scientists as B.1.1.529, has spread rapidly among young people in Gauteng, the country's most populous province, Health Minister Joe Phaahla announced Thursday. He said B.1.1.529 is a concern because of its many mutations. That could make it easier to transmit, although many new virus variants die out. The variant has also been found in Botswana and Hong Kong in travelers from South Africa.

Sharon Peacock, who has led genetic sequencing of COVID-19 in Britain at the University of Cambridge, said the data so far suggest the new variant has mutations "consistent with enhanced transmissibility," but said that "the significance of many of the mutations is still not known."

So far fewer than 100 cases of the new variant have been confirmed, largely among young people in South Africa, who have the lowest vaccination rate in the country.

Dow futures were down 788 points, or 2.1%, as of 7:58 a.m. EST, pointing to a sharp decline when U.S. markets open for trading. S&P 500 futures fell 71 points, or 1.5%, while Nasdaq Composite futures sank 113 points, or 0.7%. 

Overseas, stocks also slid. London's benchmark dropped 3.3% at the opening, while markets in Tokyo, Shanghai, Frankfurt and Hong Kong also slumped. 

Spooked investors are moving money into safer assets, such as sovereign bonds, Deutsche Bank analysts said. 

"Sectors and countries most exposed to the pandemic (tourism, energy etc.) have been hit hardest," Neil Shearing of Capital Economics said in a report. "We expect those patterns to persist in the near term as investors digest the implications of the new variant."

The U.K. has banned flights from South Africa, while European Union officials said they will propose halting air travel from countries where B.1.1.529 has been found, according to Reuters. 

Oil prices also declined, with Shearing saying it reflects "the fear that the new variant will lead to widespread travel restrictions and lower oil demand."

Investors were already more cautious after Federal Reserve officials said in notes from their October meeting released this week that they foresaw the possibility of raising interest rates sooner than previously planned, in response to higher inflation. 

Yet the potential risk from B.1.1.529 could make central bankers think twice about withdrawing policies aimed at shoring up economic growth, according to Capital Economics. 

Concerns over the new coronavirus variant are flaring as the holiday shopping season kicks off with Black Friday, a key period for retailers around the U.S.

Roughly 70% of shoppers surveyed by consulting firm Deloitte said they had already started their holiday shopping by the last week of October. Eighty percent of early shoppers' budgets is expected to be spent by the end of the Thanksgiving period.

—The Associated Press contributed to this report

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Alain Sherter

Alain Sherter covers business and economic affairs for CBSNews.com.

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Источник: https://www.cbsnews.com/news/stock-market-covid-19-new-variant-black-friday/

Deutsche Bank to return 5,000 staff to NYC, Americas CEO says

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Home / Industry / Banking /  Deutsche Bank to return 5,000 staff to NYC, Americas CEO says

1 min read.Updated: 28 Sep 2021, 10:45 PM ISTBloomberg

Many of the returning staff will still have the option of more flexible working arrangements, Christiana Riley, chief executive officer of Deutsche Bank Americas says

commerce state bank west bend wi Bank AG plans to return 5,000 workers to New York City over the next six months.

Many of the returning staff will still have the option of more flexible working arrangements, Christiana Riley, chief executive officer of Deutsche Bank Americas, said in an interview from the Frankfurt-based company’s new U.S. headquarters Tuesday.  

“The demise of New York is vastly overstated," Riley said. “We’re thrilled to see the ecosystem in New York coming back what time is the post office open till today life."

Deutsche Bank said in a report to clients earlier this month that workers in many industries are feeling isolated from their colleagues, and could be developing health problems related to inadequate remote-work setups. The firm now expects offices in major financial hubs such as London and New York City to refill quickly, pointing to increased ridership on public transit systems in both cities as one early sign that workers are getting back to their desks.  

In the wide-randing interview, Riley said Deutsche Bank sees opportunities for growth following a restructuring of its core businesses. The bank now plans to expand organically in the U.S., not through acquisitions, a strategy Riley partly attributed to high valuations. After a period of job cuts, downsizing its investment-banking business and revamping management, the firm expects to be able to expand its market share in the U.S., she said.

“We made difficult decisions around shedding businesses that weren’t successful, weren’t profitable for us in this market," Riley said. “We’ve got a spectrum of businesses across the fixed-income and credit-origination space" that will bring value to our clients.

Riley also said Deutsche Bank’s market share of the ESG debt issuance market has doubled since 2019. 

 

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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Источник: https://www.livemint.com/industry/banking/deutsche-bank-to-return-5-000-staff-to-nyc-americas-ceo-says-11632848674927.html

26 November 2021

WORKING PAPER SERIES - No. 2617

Markups and inflation cyclicality in the euro area

English

Abstract
Price inflation in the euro area has been stable and low since the Global Financial Crisis, despite notable changes in output and unemployment. We show that an increasing share of high markup firms is part of the explanation of why inflation remained stubbornly stable and low in the euro area over the past two decades. For this purpose, we exploit a rich firm-level database to show that over the period 1995–2018 the aggregate markup in the euro area has been on the rise, mainly on account of a reallocation towards high-markup firms. We document significant heterogeneity in markups across sectors and countries and, by linking these markup developments to the evolution of sectoral level producer and consumer price inflation, we find that (i) inflation in high-markup sectors tends to be less volatile than in low-markup sectors and (ii) inflation in high-markup sectors responds significantly less to oil supply, global demand and euro area monetary policy shocks.
JEL Code
D2 : Microeconomics→Production and Organizations
D4 : Microeconomics→Market Structure and Pricing
N1 : Economic History→Macroeconomics and Monetary Economics, Industrial Structure, Growth, Fluctuations
O3 : Economic Development, Technological Change, and Growth→Technological Change, Research and Development, Intellectual Property Rights
Network
Price Micro Setting Analysis Network (PRISMA)

25 November 2021

WORKING PAPER SERIES - No. 2616

Nowcasting euro area GDP with news sentiment: a tale of two crises

English

Abstract
This paper shows that newspaper articles contain timely economic signals that can materially improve nowcasts of real GDP growth for the euro area. Our text data is drawn from fifteen popular European newspapers, that collectively represent the four largest Euro area economies, and are machine translated into English. Daily sentiment metrics are created from these news articles and we assess their value for nowcasting. By comparing to competitive zapp i only have eyes for you rigorous benchmarks, we find that newspaper text is helpful in nowcasting GDP growth especially in the first half of the quarter when other lower-frequency soft indicators are not available. The choice of the sentiment measure matters when tracking economic shocks such as the Great Recession and the Great Lockdown. Non-linear machine learning models can help capture extreme movements in growth, but require sufficient training data in order to be effective so become more useful later in our sample.
JEL Code
C43 : Mathematical and Quantitative Methods→Econometric and Statistical Methods: Special Topics→Index Numbers and Aggregation
C45 : Mathematical and Quantitative Methods→Econometric and Statistical Methods: Special Topics→Neural Networks and Related Topics
C55 : Mathematical and Quantitative Methods→Econometric Modeling→Modeling with Large Data Sets?
C82 : Mathematical and Quantitative Methods→Data Collection and Data Estimation Methodology, Computer Programs→Methodology for Collecting, Estimating, and Organizing Macroeconomic Data, Data Access
E37 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→Forecasting and Simulation: Models and Applications

25 November 2021

WORKING PAPER SERIES - No. 2615

Quantitative easing and corporate innovation

English

Abstract
To what extent can Quantitative Easing impact productivity growth? We document a strong and heterogeneous response of corporate R&D investment to changes in debt financing conditions induced by corporate debt purchases under the ECB’s Corporate Sector Purchase Program. Companies eligible for the program increase significantly their investment in R&D, relative to similar ineligible companies operating in the same country and sector. The evidence further suggests that by subsidizing the cost of debt, corporate bond purchases by the central bank stimulate innovation through a wealth transfer to innovative companies with low debt levels, rather than by supporting credit constrained firms.
JEL Code
E5 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit
G10 : Financial Economics→General Financial Markets→General
O3 : Economic Development, Technological Change, and Growth→Technological Change, Research and Development, Intellectual Property Rights

24 November 2021

OCCASIONAL PAPER SERIES - No. 285

To be or not to be “green”: how can monetary policy react to climate change?

English

Abstract
Climate change has profound effects not only for societies and economies, but also for central banks’ ability to deliver price stability in the future. This paper starts by documenting why climate change matters for monetary policy: it impacts the economic variables relevant to one chart patient nebraska medicine the monetary policy stance, it interacts with fiscal and structural responses and it can generate dislocations in financial markets, which are impossible for monetary policy to ignore. Next, we survey several possible ways central banks can respond to climate change. These pay spectrum mobile bill online from protective actions to more proactive measures aimed at mitigating climate change and supporting green finance and the transition to sustainable growth. We also discuss the constraints and trade-offs faced by central banks as they respond to climate risks. Finally, focusing on the specific challenges faced by inflation-targeting central banks, we consider how certain design features of this regime might interact with, and evolve in response to, the climate challenge.
JEL Code
E52 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy
E58 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Central Banks and Their Policies
Q54 : Agricultural and Natural Resource Economics, Environmental and Ecological Economics→Environmental Economics→Climate, Natural Disasters, Global Warming

24 November 2021

SURVEY ON THE ACCESS TO FINANCE OF ENTERPRISES IN THE EURO AREA

Survey on the Access to Finance of Enterprises in the euro area - April to September 2021

English

English

24 November 2021

RESEARCH BULLETIN - No. 89

Bank leverage constraints and bond market illiquidity during the COVID-19 crisis

English

English

Abstract
The outbreak of the coronavirus (COVID-19) pandemic led to heightened uncertainty and a “dash-for-cash” in March 2020. Investors moved out of risky assets and into safe assets. The mutual fund sector in particular was hit by unprecedented investor redemptions and faced fire sale pressure as a result. Typically, banks that engage in securities trading – dealer banks – absorb such bond sales, supporting market liquidity, but regulation may limit their ability to do so by requiring them to maintain a certain leverage ratio. In recent research, we analyse the role of bank leverage constraints as an amplifier of bond market illiquidity during the March 2020 crisis. Our analysis links mutual funds bond holdings to dealer banks and their leverage constraints. We document that mutual funds that were holding more bonds exposed to dealer bank constraints in their portfolio faced bigger selling pressure in March 2020. We provide supplementary evidence that bank leverage constraints affect bond liquidity, using the introduction of leverage ratio regulation in the euro area.
JEL Code
G12 : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates
G18 : Financial Economics→General Financial Markets→Government Policy and Regulation
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages

22 November 2021

WORKING PAPER SERIES - No. 2614

Credit growth, the yield curve and financial crisis prediction: evidence from a machine learning approach

English

Abstract
We develop early warning models for financial crisis prediction by applying machine learning techniques to macrofinancial data for 17 countries over 1870–2016. Most nonlin-ear machine learning models outperform logistic regression in out-of-sample predictions and forecasting. We identify economic drivers of our machine learning models using a novel framework based on Shapley values, uncovering nonlinear relationships between the predic-tors and crisis risk. Throughout, the most important predictors are credit growth and the slope of the yield curve, both domestically and globally. A flat or inverted yield curve is of most concern when nominal interest rates are low and credit growth is high.
JEL Code
C40 : Mathematical and Quantitative Methods→Econometric and Statistical Methods: Special Topics→General
C53 : Mathematical and Quantitative Methods→Econometric Modeling→Forecasting and Prediction Methods, Simulation Methods
E44 : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy
F30 : International Economics→International Finance→General
G01 : Financial Economics→General→Financial Crises

19 November 2021

WORKING PAPER SERIES - No. 2613

What goes around comes around: How large are spillbacks from US monetary policy?

English

Abstract
We quantify spillbacks from US monetary policy based on structural scenario analysis and minimum relative entropy methods applied in a Bayesian proxy structural vector-autoregressive model estimated on data for the time period from 1990 to 2019. We find that spillbacks account for a non-trivial share of the overall slowdown in domestic real activity in response to a contractionary US monetary policy shock. Our analysis suggests that spillbacks materialise as Tobin’s q/cash flow and stock market wealth effects deutsche bank new york stock exchange on US investment and consumption. Contractionary US monetary policy depresses foreign sales of US firms, which reduces their valuations/cash flows and thereby induces cutbacks in investment. Similarly, as contractionary US monetary policy depresses US and foreign equity prices, the value of US households’ portfolios is reduced, which triggers a drop in consumption. Net trade does not contribute to spillbacks because US monetary policy affects exports and imports similarly. Finally, spillbacks materialise through advanced rather than emerging market economies, consistent with their relative importance in US firms’ foreign demand and US foreign equity holdings.
JEL Code
F42 : International Economics→Macroeconomic Aspects of International Trade and Finance→International Policy Coordination and Transmission
E52 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy
C50 : Mathematical and Quantitative Methods→Econometric Modeling→General

18 November 2021

WORKING PAPER SERIES - No. 2612

Natural rate chimera and bond pricing reality

English

Abstract
We build a novel macro-finance model that combines a semi-structural macroeconomic module with arbitrage-free yield-curve dynamics. We estimate it for the United States and the euro area using a Bayesian approach and jointly infer the real equilibrium interest rate (r*), trend inflation (π*), and term premia. Similar to Bauer and Rudebusch (2020, AER), π* and r* constitute a time-varying trend for the nominal short-term rate in our model, rendering estimated term premia more stable than standard yield curve models operating with time-invariant means. In line with the literature, our r* estimates display a distinct decline over the last four decades.
JEL Code
C11 : Mathematical and Quantitative Methods→Econometric and Statistical Methods and Methodology: General→Bayesian Analysis: General
C32 : Mathematical and Quantitative Methods→Multiple or Simultaneous Equation Models, Multiple Variables→Time-Series Models, Dynamic Quantile Regressions, Dynamic Treatment Effect Models, Diffusion Processes
E43 : Macroeconomics and Monetary Economics→Money and Interest Rates→Interest Rates: Determination, Term Structure, and Effects
G12 : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates
E44 : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy
E52 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy

17 November 2021

FINANCIAL STABILITY REVIEW

Financial Stability Review, November 2021

English

English

17 November 2021

FINANCIAL STABILITY REVIEW - BOX

Sustainability of recent euro area investment banking strength and debt capital market intermediation

Financial Stability Review Issue 2, 2021

English

Abstract
Investment banking revenues have contributed markedly to the recent increase in euro area banks’ non-interest income growth and the rebound in bank profitability. Internationally, equity capital market (ECM) revenue has doubled in the last three years, while debt capital market (DCM) and merger and acquisition (M&A) revenue has increased by around 50%, with only syndicated lending remaining more subdued. In the euro area, however, the most significant volume increase has come from debt instruments, which have long been the preferred source of corporate funding in the euro area ahead of equity. Despite the international growth in capital market volumes, market commentary before the pandemic suggested that investment banking was the “problem child” of European banking, with many large banks retreating from various market segments as they faced the fallout from the global financial crisis. Against this background, this box considers the recent developments in investment banking of euro area banks in relation to some of the prior trends and considers how sustainable the recent strength might be.
JEL Code
G12 : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
G24 : Financial Economics→Financial Institutions and Services→Investment Banking, Venture Capital, Brokerage, Ratings and Ratings Agencies
:

17 November 2021

FINANCIAL STABILITY REVIEW - BOX

Lessons learned from initial margin calls during the March 2020 market turmoil

Financial Stability Review Issue 2, 2021

English

Abstract
This box establishes stylised facts about the significant increase in initial margin (IM) in the euro area derivatives market during the March 2020 market turmoil. First, it shows that the increase was concentrated almost entirely in centrally cleared derivatives and driven mainly by equity, credit and interest rate portfolios. Second, by comparing static portfolios with those where portfolio repositioning took place, the IM increase is decomposed into (i) changes attributable to the CCP model sensitivity to market volatility, and (ii) changes attributable to portfolio repositioning by investors. For centrally cleared interest rate and credit derivatives (where this method is applicable), CCP model sensitivity to market volatility is found to be a key driver of the IM increase. Overall, the results suggest that it is important to develop a clearer understanding of “excessive procyclicality” for IM and possibly, on the basis of this common understanding, to review the models which CCPs use to calibrate IMs. The supervisory and regulatory framework governing the liquidity management of market participants, and in particular that of some non-bank financial intermediaries, should also be strengthened.
JEL Code
C60 : Mathematical and Quantitative Methods→Mathematical Methods, Programming Models, Mathematical and Simulation Modeling→General
G10 : Financial Economics→General Financial Markets→General
G13 : Financial Economics→General Financial Markets→Contingent Pricing, Futures Pricing

17 November 2021

FINANCIAL STABILITY REVIEW - BOX

The role of financial stability in the ECB’s new monetary policy strategy

Financial Stability Review Issue 2, 2021

English

Abstract
The box reviews the role of financial stability in the ECB’s new monetary policy strategy and summarises the underlying analytical considerations. Financial stability is a precondition for price stability and vice versa. Accordingly, the pursuit of price stability by means of monetary policy, and of financial stability by means of macro-prudential, supervisory and regulatory policies, are complementary. For example, a build-up of financial imbalances increases the likelihood of future financial crises, with a negative impact on price stability. Addressing these vulnerabilities with adequate marcro-prudential measures is also beneficial for price stability. Similarly, monetary policy may also affect financial stability risks: it can reduce credit risk by boosting activity levels and inflation dynamics but at times may also encourage the build-up of leverage or raise the sensitivity of asset prices. In view of the price stability risks arising in financial crises, there is a clear conceptual case for the ECB to take financial stability considerations into account in its monetary policy deliberations. This does not imply that monetary policy is responsible for guaranteeing deutsche bank new york stock exchange stability or lessen the role of macro-prudential policies as a first line of defence against financial vulnerabilities. Accordingly, the ECB’s new monetary policy strategy envisages a flexible approach in considering financial stability whenever this is relevant to the pursuit of price stability.
JEL Code
E3, E44, G01, G21 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles

17 November 2021

FINANCIAL STABILITY REVIEW - BOX

Assessing the strength us bank branches open on saturday near me the recent residential real estate expansion

Financial Stability Review Issue 2, 2021

English

Abstract
In order to assess the strength of the current residential real estate expansion, we compare recent developments in euro area housing markets with the period ahead of the global financial crisis (GFC). We find that house price dynamics, overvaluation and the risk profile of new mortgage loans are at similar levels to those observed during the height of the pre-GFC cycle in 2007. However, vulnerabilities from mortgage lending developments and household balance sheets are currently below their pre-GFC levels. We conclude that the continued build-up of vulnerabilities in residential real estate markets calls for close monitoring and possible macroprudential measures.
JEL Code
R31 : Urban, Rural, Regional, Real Estate, and Transportation Economics→Real Estate Markets, Spatial Production Analysis, and Firm Location→Housing Supply and Markets
G51 : Financial Economics
P34 : Economic Systems→Socialist Institutions and Their Transitions→Financial Economics
G01 : Financial Economics→General→Financial Crises

17 November 2021

FINANCIAL STABILITY REVIEW - BOX

The impact of loan and market-based credit supply shocks on euro area GDP growth

Financial Stability Review Issue 2, 2021

English

Abstract
Using a Bayesian vector autoregression model and drawing from a novel quarterly dataset on debt financing of non-financial corporations, this box estimates the effects of loan and market-based credit supply shocks on GDP growth in the euro area and the five largest euro area countries. A novel identification scheme with inequality restrictions is developed to distinguish between the two types of credit supply shock. The results suggest that not only loan supply but also market-based credit supply shocks play an important role for GDP growth. For the euro area as a whole, the explanatory power of both types of credit supply shock is found to be similar, while in Germany and France the explanatory power of market-based credit supply shocks exceeds that of loan supply shocks. Since market-based credit is mostly provided by non-bank financial intermediaries, the findings also suggest that strengthening the resilience of these intermediaries – such as through an enhanced macroprudential framework – would support GDP growth.
JEL Code
C32 : Mathematical and Quantitative Methods→Multiple or Simultaneous Equation Models, Multiple Variables→Time-Series Models, Dynamic Quantile Regressions, Dynamic Treatment Effect Models, Diffusion Processes
E32 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→Business Fluctuations, Cycles
E44 : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy
E51 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Money Supply, Credit, Money Multipliers
G2 : Financial Economics→Financial Institutions and Services

17 November 2021

FINANCIAL STABILITY REVIEW - ARTICLE

Creditor coordination in resolving non-performing corporate loans

Financial Stability Review Issue 2, 2021

English

Abstract
Numerous European and national initiatives have been deployed since 2014 to reduce non-performing loan (NPL) stocks on euro area bank balance sheets. NPL ratios have fallen as a result, but very gradually, mainly thanks to sales to non-bank investors. Despite stronger market activity, prices paid by NPL investors have only improved marginally and continue to stand well below values assigned to NPLs by banks. One type of NPL that has proven particularly difficult to resolve is loans to non-financial firms that have borrowed from multiple banks – multi-creditor loans. Analysis of these loans relative to others finds lower provision coverage by the lending banks, reflecting more optimistic valuations by individual banks and limited recognition deutsche bank new york stock exchange the expected costs of multi-creditor coordination. This special feature proposes a strategy to overcome creditor coordination failures and costs, through the use of data platforms providing ex ante transparency to NPL investors. These, together with NPL securitisation, could substantially reduce the gap between the value of the loans booked on banks’ balance sheets and the prices offered by investors for NPL portfolios.
JEL Code
G21 : Farmers state bank of aliceville Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
G32 : Financial Economics→Corporate Finance and Governance→Financing Policy, Financial Risk and Risk Management, Capital and Ownership Structure, Value of Firms, Goodwill

17 November 2021

FINANCIAL STABILITY REVIEW - ARTICLE

Bank capital buffers and lending in the euro area during the pandemic

Financial Stability Review Issue 2, 2021

English

Abstract
Bank capital buffers are supposed to help banks to absorb losses while maintaining the provision of key financial services to the real economy in times of stress. Capital buffers that are usable along these lines should lessen the damaging effects that can arise from credit supply shortages. Making use of buffers entails using the capital space above regulatory buffers and minimum requirements and, in case of need, also using regulatory buffers. This special feature analyses bank lending behaviour during the pandemic to gain insights into banks’ propensity to use capital buffers and the impact of the regulatory capital relief measures implemented by the authorities. From a macro perspective, the euro area banking system was able to meet credit demand and withstand stress. However, this aggregate view reflects several factors, including the impact of extraordinary policy measures. A micro perspective thus can help to comprehend how the capital buffer framework and capital releases affected banks’ behaviour during the pandemic. A microeconometric analysis shows that the banks with limited capital space above regulatory buffers adjusted their balance sheets by reducing lending, which could be interpreted as an attempt to defend capital ratios, suggesting unwillingness to use capital buffers. The results also show that the regulatory capital relief measures adopted during in the pandemic, which added to banks’ existing capital space, were associated with higher credit supply. while more research is desirable, this suggests that more releasable capital could enhance macroprudential authorities’ ability to act countercyclically when a crisis occurs.
JEL Code
E58 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Central Banks and Their Policies
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
E52 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy
E44 : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy
E41 : Macroeconomics and Monetary Economics→Money and Interest Rates→Demand for Money

17 November 2021

FINANCIAL STABILITY REVIEW - BOX

Sensitivity of sovereign debt in the euro area to an interest rate-growth differential shock

Financial Stability Review Issue 2, 2021

English

Abstract
Euro area sovereigns have issued significant amounts of new debt in response to the pandemic. While fiscal support was crucial to limit economic scarring and aid the recovery, it has also triggered concerns about medium to longer-term sovereign debt sustainability. One of the key factors for assessing sovereign debt sustainability is the interest rate-growth differential (
JEL Code
E43 : Macroeconomics and Monetary Economics→Money and Interest Rates→Interest Rates: Determination, Term Structure, and Effects
E6 : Macroeconomics and Monetary Economics→Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
H62 : Public Economics→National Budget, Deficit, and Debt→Deficit, Surplus
H63 : Public Economics→National Budget, Deficit, and Debt→Debt, Debt Management, Sovereign Debt
H68 : Public Economics→National Budget, Deficit, and Debt→Forecasts of Budgets, Deficits, and Debt

17 November 2021

FINANCIAL STABILITY REVIEW - BOX

ECB macroprudential stress test complements the EBA/SSM stress tests results in 2021

Financial Stability Review Issue 2, 2021

English

Abstract
The ECB’s biennial macroprudential stress test evaluates the resilience of the euro area banking system, this year also assessing the impact of pandemic-related policy measures. While relying on the same adverse and baseline scenarios as the EBA/SSM supervisory stress test, it also employs a dynamic balance sheet perspective and introduces amplification mechanisms relying on the banking euro area stress test model framework as outlined in Budnik et al. (2020). The results indicate a strong bank capitalisation under the baseline scenario combined with a subdued outlook for bank profitability. The lending outlook differs sharply for the two scenarios where policy support measures have a clear positive effect, especially in the adverse scenario, and have helped to ensure the resilience of the financial system.
JEL Code
E37 : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→Forecasting and Simulation: Models and Applications
E58 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Central Banks and Their Policies
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
G28 : Financial Economics→Financial Institutions and Services→Government Policy and Regulation

17 November 2021

FINANCIAL STABILITY REVIEW - BOX

The expanding uses and functions of stablecoins

Financial Stability Review Issue 2, 2021

English

Abstract
The market capitalisation of stablecoins has increased from USD 5 billion to USD 120 billion since 2020. Despite their recent growth, stablecoins still only account for around 6% of the estimated USD 2 trillion total market capitalisation of crypto-assets, though interlinkages between stablecoins and crypto-assets imply a correlation of risks between these market segments. At the same time, the functions served by stablecoins within the ecosystem have multiplied. In addition to acting as a relatively safe “parking space” for crypto volatility, stablecoins serve as a bridge between fiat currencies and crypto-assets and are used for trading or as collateral in crypto-asset derivative transactions or in decentralised finance. Against this background of stablecoins’ interlinkages with the wider crypto-asset market and their direct links to the traditional financial system, this box analyses the risks associated with the evolving functions of stablecoins and the financial stability implications of such risks. It concludes that while stablecoins currently pose limited financial stability risks in the euro area, their growing size, usage and connected infrastructure may alter this assessment in the future. Nevertheless it highlights that the global reach of this market underscores the need for global standard-setting bodies to further assess the extent to which existing standards are appropriate for, and applicable to, stablecoins and close any gaps as necessary.
JEL Code
E42 : Macroeconomics and Monetary Economics→Money and Interest Rates→Monetary Systems, Standards, Regimes, Government and the Monetary System, Payment Systems
G13 : Financial Economics→General Financial Markets→Contingent Pricing, Futures Pricing
G18 : Financial Economics→General Financial Markets→Government Policy and Regulation
G28. : Financial Economics→Financial Institutions and Services→Government Policy and Regulation
Источник: https://www.ecb.europa.eu/

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