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How Sick are Europe's banks?

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Deutsche Bank’s Got Issues

"At this point, Deutsche Bank's biggest problem may simply be how many problems it has." Don't sugarcoat it, Bloomberg.

So what are all those problems? Germany's top bank has suffered a prolonged spell of declining revenues, growing expenses, crumbling credit ratings, and misconduct fines to the tune of $17 billion in the last decade.

Paired with outdated technology and difficulty attracting top talent? Well, maybe the memes say it best—is DB still a BB? Its shares lost more than half their value in 2018.

The bank has tried to turn things around. CEO Christian Sewing brought DB its first annual profit in four years last year, and he's cut costs even morethan he pledged.

  • But cost-cutting can only get you so far when you were one of the slowest banks to remedy your balance sheet and c-suite post-2008 crisis. That's why some have called for a German government-brokered merger between DB and Commerzbank—the country's two biggest private sector lenders.

+ While we're here: DB allegedly denied then-candidate Donald Trump a loan during the 2016 campaign, per the NYT. Why? His "divisive candidacy" made it too big a risk.

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