Image copyright Reuters Has been called by the International Monetary Fund “the bank world’s most dangerous”.
The Deutsche Bank, the German financial giant, has faced difficulties in recent months, and observers have said that these messes could cause delicate problems to the world economy.
But this week, the bank received what, from their perspective, it is a piece of news is relatively good.
The us authorities imposed a fine of US$ 7.200 billion, an amount lower than expected, due to irregularities committed by the bank during the last global financial crisis of 2007-2008.
And the agreement reached between the bank and Washington also offers good news for some u.s. consumers.
More than half of the fine must be paid by Deutsche Bank in the form of financial relief to thousands of depositors of the bank in that country.
Christmas early
In the beginning were not revealed many details of how it will work exactly this mechanism helps the consumer, but it is expected that in the coming years include reductions and renegotiations on some of the mortgages and other loans offered by Deutsche Bank to its customers.
Previously, the u.s. Department of Justice came to such arrangements with other financial institutions also faced penalties for irregularities, and received the instruction to compensate their customers instead of the government.
last February, for example, HSBC bank was ordered by the authorities to allocate US$ 370 million dollars to the relief of consumers and homeowners.
This relief included lower mortgage interest rates as well as the principal of the mortgages for some homeowners facing difficulty of non-payment.
Relief on Wall Street
The agreement announced this week is pending final approval by the authorities.
But has been received with relief on Wall Street.
In September the authorities initially had asked the bank to pay US$ 14,000 million in penalties for its role in the sale of mortgage-backed securities, which helped trigger the global financial crisis of a decade ago.
The high amount of the initial fine caused fear around the stability of the bank, and by the consequences this may have on global markets.
manageable
The new amount negotiated seems to be more manageable.
“Deutsche Bank is very happy with this arrangement. It is painful but not as painful as it could have been,” says Theo Leggett, correspondent of business of the BBC.
The original figure of the fine of US$ 14,000 million, was more than half of the market value of the bank. “That would have been extremely serious for the company,” warns Leggett.
In reality, Deutsche was waiting to negotiate the amount to about US$ 5,000 million, says our correspondent.
“The amount imposed is higher: US$ 7.200 million. But only US$ 3.100 million fine is a real. The rest is ‘relief to the consumers, impairments of loans and other mechanisms to help the savers, who may be scattered over several years,” says Leggett.
smaller
Deutsche Bank is much smaller than its rivals on Wall Street, like JP Morgan and Citigroup.
But has commercial ties with all the leading financial institutions in the world.
And the fears about the stability of the main bank of Europe’s biggest economy in 2016, revived memories of the 2008 financial crisis.
This fear appears to be decreasing now.
at The time that some of the mortgage customers of Deutsche Bank will receive in the course of 2017 the happy news of a downgrade of its debt, for the account of the agreement between the bank and u.s. authorities.
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