Deutsche Bank is replacing its U.S. chief Bill Woodley with the global head of its stock-trading business, Thomas Patrick, people close to the matter said, in a sign of its intent to restructure its Wall Street business.
European stocks and U.S. futures fell on Monday, as political tensions, a Deutsche Bank cash call and U.S. President Donald Trump's accusation that his predecessor Barack Obama wiretapped him overshadowed a flurry of M&A activity in Europe.
Credit Suisse and Deutsche Bank have been hit with a combined penalty of more than $12 billion over the sale of U.S. toxic debt, further hampering two of Europe's leading investment banks as they struggle with weak earnings. The penalties stem from an initiative launched by U.S. President Barack Obama to pursue banks for selling sub-prime debt without warning of the risks, a practice that led to the worst economic crisis since the Great Depression.
Russia's central bank alleged that a banker at Deutsche Bank's Russian branch had manipulated markets by conducting 300 billion rubles ($4.87 billion) of trades with relatives over two and a half years.
Deutsche Bank could agree this week to a penalty with the U.S. Department of Justice for allegedly misleading investors when selling mortgage-backed securities, one person with direct knowledge of the matter said on Monday.
Lawyers for investors accusing several major banks of conspiring to rig silver prices are seeking to add five new defendants to the case, based what they call "smoking gun" evidence they obtained from Deutsche Bank AG following a settlement.
Deutsche Bank needs to move quickly to boost capital and deliver healthy profits if it is to restore investor confidence, but its room for maneuver appears limited, bankers, analysts and investors say.
The USD was mixed against majors. The U.S. dollar appreciated against the JPY and the CHF but traded lower versus commodity currencies and the EUR and the GBP after a surprise Organization of the OPEC supply cut agreement and signs of a settlement between the U.S. Department of Justice and Deutsche Bank.