German lender, Deutsche Bank, which has paid out in excess of $9 billion in fines and settlements since the financial crisis, is hoping to draw a line under its four largest remaining litigation cases this year, according to Reuters today, as Chief Executive John Cryan continues to focus on a speedy revamp ahead of short-term profit.
Settlement by Third-Quarter
Earlier this year, Cryan said he expected to resolve the largest of its legal cases by mid-year or the third-quarter, adding that “2016 should be the year when we finish the process of tidying up the bank and be 100 percent focused on what’s most important, which is our staff engaging with our customers.”
Primarily, Deutsche Bank is looking to settle US investigations into mis-selling of mortgage-backed securities in the run-up to the financial crisis, where it has started settlement talks with the US Department of Justice.
In addition, it plans to close the chapter of alleged manipulation of foreign exchange rates. While Deutsche Bank has reached a settlement in Europe, negotiations with four US regulators are ongoing.
ACY Securities Supports ASIC’s Product Intervention OrderGo to article >>
The bank is also attempting to put a probe by European and US regulators into suspicious equities trades in Russia behind it.
Deutsche Bank earlier warned that deeper cuts may be needed to turn around the fortunes of the lender after revenues fell sharply in the second quarter amid the low interest rate environment and volatile markets which weighed on the business.
Cryan, who recently described the company as “rock solid”, pledged to resolve the bank’s legal battles as part of an overhaul plan.