Deutsche Bank shares fall on legal provision reports
A report in Spiegel magazine, citing unnamed sources, has claimed that the bank might need to increase its legal provisions by 30 per cent.
The share prices hit their lowest level in seven weeks soon after the magazine came out.The bank is still dealing with lawsuits relating to the sale of mortgage-backed securities in the US and with regulatory probes into the manipulation of benchmark interest rates and currency markets. But Ingo Fromment, analysis at Landesbank Baden-Wuerttemberg, is still recommending the shares. She said: ‘Deutsche Bank has suggested that legal costs will rise and the market was expecting this kind of number. They’re probably going to try to pack as many costs as possible into their third-quarter numbers because they did rather well from an operating perspective.’ Source: Bloomberg Businessweek
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