Beggars can't be choosers, etc, but honestly, they really put a damper on earnings day!
UBS AG and Deutsche Bank AG’s better-than-estimated second-quarter earnings were overshadowed by the disclosure of new regulatory probes as the banks struggle to boost revenue. While Deutsche Bank and UBS posted “clean” pretax profits ahead of estimates, “the focus remains on capital at risk from litigation,” said Kian Abouhossein and Amit Ranjan, analysts at JPMorgan Chase & Co., in a note today. “The only way to reassure investors is showing strong capital progression.” UBS, which settled a German tax investigation for about 302 million euros ($406 million) this month, said today the U.S. Securities and Exchange Commission has been investigating its dark pool private-trading venue since early 2012. Deutsche Bank, whose legal costs totaled 3 billion euros last year, said it’s responding to requests for information from regulators about high-frequency trading.