In our last edition of "What's Ailing Deutsche Bank/Should They Just Scrap The Whole Thing And Go Home," we added the comically large figure the Justice Department threw out as its initial offer to settle DB's mortgage-related messiness: $14 billion. As most of you can probably imagine, the Germans' response was, "Do we look like the kind of bank that just has $14 billion lying around, let alone half or one quarter of that?" Today, we get to tack on this bit of news/misery/reason for CEO John Cryan to weep into his sauerkraut:
Deutsche Bank AG’s status as the riskiest among its peers is worsening, based on a U.S. regulator’s measure of leverage, adding to the lender’s woes as it braces for a settlement over mortgage securities. Leverage ratio -- a lender’s capital measured against its assets -- at Deutsche Bank lags behind the rest of the world’s major banks, according to data released Tuesday by Federal Deposit Insurance Corp. Vice Chairman Thomas Hoenig. A lower ratio means the German bank has less of a cushion if a crisis arises. The figure was 2.68 percent as of June 30, down from a year earlier and about half the average of the eight biggest U.S.-based firms including JPMorgan Chase & Co. and Citigroup Inc.