Maybe Donald Trump’s evil German twin brother negotiated this deal on behalf of the German bank. How in the world does the DOJ get low balled down to $3.1b from upwards of $14b? Wait, how about I take a guess?
Total and complete horseshit in the first place.
I’ve always felt the DOJ were being assholes with $DB because of the EU’s outrageous penalty against $AAPL. Perhaps we’ll see some sort of moderation of Apple’s fine in the coming days and weeks ahead? Perhaps.
In the meantime, Deutsche Bank will pay a $3.1b civil fine, plus an additional $4.1b in relief to consumers. Considering the fact that Deutsche had set aside $5.2b for this case, I think it’s fair to say this ugliness is behind them. It’s time to move on towards new forms of ugliness, like Italian debt write downs.
“The financial consequences, if any, of the consumer relief are subject to the final terms of the settlement, and are not currently expected to have a material impact on 2016 financial results,” the bank said.
How wonderful.
Back in February of 2016, Zacks published this dandy of a news story, suggesting that total losses for RMBS were in the amount of precisely $3.1b.
U.S. District Judge Alison J. Nathan rejected Deutsche Bank’s plea to dismiss claims of Royal Park Investments SA/NV that the bank failed to undertake necessary action to push the loan sellers to replace or repurchase the bad loans. The concerned 10 trusts date between 2006 and 2007.
The lawsuit filed in June 2014 by Belgium-based Royal Park on behalf of other investors is seeking class-action status. It was alleged that Deutsche Bank National Trust Company breached contract and violated the 1939 U.S. Trust Indenture Act that specifies the duties of trustees. The bank was fully aware about the numerous deficiencies in underlying loans, including illegal loan servicing practices and noncompliance with underwriting guidelines.
Notably, the 2014 complaint stated, “due to Deutsche Bank’s inaction, the Covered Trusts have incurred losses that currently exceed $3.1 billion, and all of RPI’s (Royal Park) RMBS in the Covered Trusts are now completely worthless.”
Dax futs are flat. Shares of $DB are higher by 42% over the past 3 month. This news is already baked in.
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Next bad news story on a company… Wait 30 days and buy buy buy
for sure AAPL fine will be renegotiated .. they are about to move some manufacturing back home, and this DB settlement is most likely part of the deal.