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Omaha Steve

(99,799 posts) Sun Apr 26, 2015, 11:04 AM Apr 2015

Deutsche Bank Q1 earnings fall to $610M, hurt by penalties

Source: AP

FRANKFURT, Germany (AP) — Deutsche Bank says net profit fell to 559 million euros ($610 million) in the first quarter as legal penalties ate into stronger revenues from trading stocks and bonds.

Profits were down from 1.103 billion euros in the year-ago quarter.

The bank had to deduct 1.5 billion euros from earnings to account for penalties it has agreed to pay to authorities in the U.S. and Britain to settle investigations into the bank's role in rigging key interest rate benchmarks.

The bank said Sunday that revenue rose in the quarter by 24 percent from a year ago, to 10.4 billion euros. The bank credited stronger income from stock and bond trading and more robust financial markets. Favorable shifts in currency exchange rates also helped.

Read more: http://bigstory.ap.org/article/cccb6629371748cb835a860e608a2889/deutsche-bank-q1-earnings-fall-610m-hurt-penalties

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Deutsche Bank Q1 earnings fall to $610M, hurt by penalties (Original Post) Omaha Steve Apr 2015 OP

They still made hundreds of millions in profits so I am not shedding any tears for them. nt cstanleytech Apr 2015 #1

Right, but the thing is.... Beauregard Apr 2015 #2

If they were an American bank, the taxpayer would be subsidizing the penalties Snarkoleptic Apr 2015 #3

cstanleytech

(26,338 posts)

1. They still made hundreds of millions in profits so I am not shedding any tears for them. nt

Reply to Omaha Steve (Original post)

Sun Apr 26, 2015, 12:19 PM

Apr 2015

Beauregard

(376 posts)

2. Right, but the thing is....

Reply to cstanleytech (Reply #1)

Sun Apr 26, 2015, 01:34 PM

Apr 2015

They have to make their projected numbers or else investors will put their money somewhere else that has better numbers. Persistent failures to make high profits eventually result in having to close the shop. It's not enough anymore just to make a profit. They have to make as much or more than the other companies.

My point is that it's a system that creates this relentless struggle for profits, not simple greed.

Snarkoleptic

(6,002 posts)

3. If they were an American bank, the taxpayer would be subsidizing the penalties

Reply to Omaha Steve (Original post)

Sun Apr 26, 2015, 03:40 PM

Apr 2015

through the tax deduction taken on the payout of penalties, legal fees, etc.

Yeah, we need to change that.

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