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The biggest house of money in Germany does not control its ongoing crisis.
Frankfurt Cerberus has not had much fun with this investment so far. In November 2017, the US fund invested at least 3% in Deutsche Bank. At that time, the shares of the largest domestic currency house were worth about 16 euros, after a long series of bankruptcies, bad luck and mishaps, the price today is only about 9.70 euros.
Now Cerberus, named after the three-headed hellhound According to Greek mythology, even something to change the decline of the Institute: Deutsche Bank has confirmed that he has hired the company. majority shareholder as paid consultant.
"The acknowledged expertise of the Cerberus Operations Advisory Company will help us return to attractive returns for shareholders and investors to create," the bank said.
Shareholders, the new adviser does not seem particularly impressed, the bank's price fell Tuesday morning about 1%.
Deutsche Bank is struggling with two major problems. The costs are far too high in the comparison of the industry. The Frankfurters have to spend more than 90 cents to take a euro.
In addition, revenues plummet. New CEO Christian Sewing has already prepared shareholders for a weak second quarter. Analysts expect a further decline in revenues from the previous year and a decline in profits from 466 to 140 million euros.
The bank had replaced its former CEO John Cryan in early April because of Sewing's failure. But the bad news does not stop there. The Standard & Poor's rating agency downgraded the credit rating, and in the US the bank became the only institution to undergo the US Federal Reserve's stress test.
The stock price continues to fall decreased by 15 percent. At the same time, risk premiums in the credit insurance market rose by 25%. Since the financial crisis, premiums have been viewed as an important indicator of the confidence investors place in banks' resilience.
In order to control the current crisis, Sewing apparently brought the help of Cerberus into the house. According to the Wall Street Journal, Matt Zames will lead the team of US fund advisers. Zames worked for the US financial giant JP Morgan for more than ten years, most recently as Chief Operating Officer, before joining Cerberus in June 2017.
The US fund is also involved in Commerzbank. The entry into Deutsche Bank had given new rumors about a possible merger between the two largest domestic private banks. According to information provided by the financial community, however, Cerberus does not want to push for a merger and does not require any changes to the strategy of Deutsche Bank.
Sewing especially wants to reduce the investment bank. The restructuring of the group will cost at least 7,000 jobs, including a quarter of the jobs in total stock trading.
However, Frankfurt 's business bankers and advisers believe that much deeper cuts in investment banks would be needed to get the bank back on track. most important news every morning in your inbox.
