The Germans are not yet done firing employees in Asia. Read more »
Those shares DB awarded you to make up for the ones you were leaving with your old employer? They’re going to need those back. Read more »
Yesterday afternoon, Deutsche Bank vice chairman and managing director Brian Mulligan filed a claim with the city of Los Angeles, letting it be known that he plans on suing for $50 million, over an altercation with the LAPD that left Mulligan with “a broken shoulder blade and 15 nasal fractures.” According to the media banker, he was minding his own business one night in May, when a couple of officers approached him, asked him what he was doing in the vicinity of a marijuana dispensary, searched his car (where they found a few thousand dollars), drove him to a motel and told him to wait there. Several hours later, still waiting, Mulligan says he started to become suspicious and decided to leave, at which point the officers returned and “began ruthlessly beating him” so badly he “barely looked human” when they were done. If this had happened to you, you might be a little upset too! The LAPD, however, claims that Mulligan has no reason to be angry with them and, in fact, owes the officers an apology, for his “outburst of erratic behavior.” Read more »
Deutsche Bank had two weird little bits of gun-jumping news today, one good(ish), one bad (just bad). The good news is that Deutsche Bank has decided that it wasn’t manipulating Libor too much:
A Deutsche Bank internal probe has found that two of its former traders may have been involved in colluding to manipulate global benchmark interest rates but there was no indication of failure at the top of the organization, three people close to the investigation said.
So … great? Those two Deutsche Bank traders can look forward to possible jail, but the buck stops with them: the board-appointed probe has exonerated the board. Ha ha ha you say, but why not? Jailable Libor manipulation by traders seems conceptually distinct from approved-by-the-Fed-and-BoE Libor manipulation for the perceived good of the financial system, and while the former is worse for the traders and submitters the latter might be worse for the top officers. At Barclays, at least, senior people were not intervening to pick up half a basis point here and there on swaps trades, but they were intervening to make themselves look pretty in the eyes of markets and Paul Tucker. And now they’re gone! At Deutsche, we don’t know what this report says, but there’s at least fake statistical evidence that DB didn’t systematically skew Libor one way or another, suggesting that the einzigen Badapfel* theory might be true, or true enough for the board not to fire itself, which is a lower bar.
The bad news is that DB announced today that it expects to announce crummy earnings next week, to the tune of EUR1.0bn/700mm of pre/after-tax net income in 2Q2012, down from 1.8/1.2bn in 2Q2011 and off ~30% from analyst estimates. This puzzled me not so much in earnings being down – what else is new, new normal, etc. – but in that we’re getting a sneak preview a week before earnings. Why do that? Read more »
The Germans are considering sending some bankers to live on a farm upstate, where there’s plenty of fresh air and room to run around. Read more »