Deutsche Bank has reached a settlement in the U.S. regarding civil claims in connection with the bank’s issuance and underwriting of residential mortgage-backed securities between 2005 and 2007.
Under the terms of the settlement agreement, Deutsche Bank has agreed to pay a civil monetary penalty of $3.1 billion and to provide $4.1 billion in consumer relief in the United States.
The consumer relief is expected to be primarily in the form of loan modifications and other assistance to homeowners and borrowers, and other similar initiatives to be determined, and delivered over a period of at least five years.
Uncertain Future
In September this year finews.asia reported that the bank saw its share price hit record lows amid genuine concern on whether it had enough capital when the Department of Justice (DOJ) made the initial request for Deutsche to pay $14 billion.
The settlement is subject to the negotiation of definitive documentation, and there can be no assurance that the DOJ and the bank will agree on the final documentation.
Asian Turbulence
For Deutsche wealth management 2016 also proved to be a tough one in Asia with the loss of its long time head of wealth management in the region Ravi Raju. Raju (pictured) had been with Deutsche in Asia since 2007 and was known to have a fierce loyalty from his senior management team and relationship managers.
He was replaced as the head of Deutsche's wealth management activities in Asia by Lok Yim, who had been head of Deutsche's private bank in North Asia since 2009. The German lender also closed its private banking arm in Australia with the loss of 15 jobs.
Meanwhile Raju will take up his new role of Head in Asia of ultra-high net worth, or UHNW, clients, at UBS in January 2017, reporting to overall Asia private bank head Edmund Koh.
