Deutsche Bank Spikes 4% On Report Of Possible New Investment By Qatar, Abu Dhabi And China

Tyler Durden's picture

Moments ago Deutsche Bank stock, which has been well away from the headlines in the past two weeks, spiked following a Manager Magazin report according to which the Qatar and Abu Dhabi  Sovereign Wealth Fund together with Chinese investors would be willing to raise their stake in DB to 25% in the case of a capital increase. This is hardly new, and has been regurgitated in some capacity over the past month, however it was sufficient to move the stock some 4% higher.

The German outlet also reports that the biggest European lender is increasingly confident of paying a fine significantly below $14 billion, thereby avoiding a new for a capital increase.

What is interesting is that according to Manager, the Qatar and Abu Dhabi investors are being advised by the infamous Michele Faissola who recently was charged for market manipulation by Italy in relation to DB's transactions with Monte Paschi and who may have had a role in some of the recent prominent banker suicides as we reported last week.

The full report, Google translated:

Other Arab investors are keen to enter Deutsche Bank. Should the money house have to increase its capital in order to pay the supposedly billions of fines for legal violations, the state funds of Qatar and Abu Dhabi would be willing to subscribe for shares. An investor from China is also on hand, as manager magazin has learned from bank travel. Read more in our new issue (October 21st).

 

Hamad bin Yassim bin Jabor Al-Thani (57) and his cousin Hamad Bin Khalifa Al-Thani (64) want to strengthen their influence. Including options keep the cousins together now around 10 percent in Deutsche Bank stock market chart show . In case of capital on a large scale they would be willing to screw their share up to 25 percent - but together with investors from Qatar, Abu Dhabi and China.

 

John Cryan (55): The CEO, who is denied leadership, is considered as jeopardized as IT boss Kim Hammonds (49) and other top executives. The two Al-Thanis are advised by Michele Faissola (48), Deutsche Bank's former asset manager.

 

Deutsche Bank has set aside 5.5 billion euros for settling further legal disputes. The money is mainly reserved for penalties in connection with the sale of bad mortgage loans and possible money laundering in Russia. Currently, both cases are investigated by supervisory authorities in the USA and Great Britain.

 

For the dubious sale of credit alone, the US Department of Justice has called for a fine of € 12.5 billion. Deutsche Bank is currently negotiating with the Americans on a significant reduction in the sum; In the Group, the confidence grows, much cheaper and therefore without capital increase. The conclusion of the negotiations is expected before the US presidential elections on 8 November.

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ratava's picture

Man I love how people rationalize the pre-ECB low volume stophunt as an actual reaction to some kind of event.

StackShinyStuff's picture

Haven't we all seen this movie before?

Government needs you to pay taxes's picture

Let's not fool ourselves, these 'investments' have been made before.  What they buy isnt shareholder equity, but rather political influence.  This will bite the little guy in the ass.  Count on that. 

Sam Clemons's picture

Lol yep. This move means the recent upswing in DB is nearly over and this is merely the carrot on top. We'll see. Tick tock DB. I haven't seen any real fixes to your problems.

LadiesLoveCoolJames's picture

Remember when the Saudi royal dickface wasted $5 billion trying to save Citibank? Also, what's with this non Trump cheerleading post? TrumpHedge must remain on message for the next 3 weeks. The echo chamber must be fed day and night!

Vinividivinci's picture

China? China wants to buy German sheisse bonds ? China ? Deutsche Bank ? China and Deutsche Bank ? fuck off...

_ConanTheLibertarian_'s picture

Makes sense. The (global) Ponzi must continue.

NaiLib's picture

Would be very surprised if Germany let anybody take influence of DB. PErhaps when bank is decimated into Savings bank

Paul Morphy's picture

Pretty much my thoughts too as well. I can't see the Germans liking their only globally systemically important bank being part owned by agencies of other sovereign nation-states.

But.

Not allowing DB to fail TRUMPS those ownership concerns. If DB is allowed to fail it will kill the financial system.

DB won't be allowed fail for that reason.

Bill of Rights's picture

Ok Ill say it....So.

GoldToDaMoon's picture

Oil producers have haemorrhaged money because of the oil price plunge, and China's trade surplus is at a 6 month low with growth expected to fall sharply into 2018, so it makes complete sense that they should pour investments into a sound and highly profitable European bank (smirk), because: Everything Is Awesome!!

williambanzai7's picture

Just like Korea and Lehman

Nameshavebeenchangedtoprotecttheinnocent's picture

Someone with a big stake in DB is wanting out & needed to get a bit higher price.

Dead Canary's picture

Douche bag is dropping. Any news?

Goldbugger's picture

Qatar and Abu Dhabi  Sovereign Wealth Fund are buying a dead man walking.

gatorengineer's picture

I think you mean tel Aviv dontcja

DontFollowMyAdviceImaDummy's picture

dead kraut bounce. nothing to see here (except a short squeeze)

Paul Morphy's picture

We've already had the "Deutsche Bank have entered in to negotiations with the Department of Justice over the size of the fine" squeeze.

Now we have "Qatar and Abu Dhabi want to invest in Deutsche Bank" squeeze.

rosiescenario's picture

At the right price such an investment might make sense. Obviously it is a very high risk investment....perhaps at $2 per share the risk vs reward could be in line????

 

It appears that the "market" does not take into account the substantial dilution to all existing shareholders, which leads me to believe that it is not "investors" buying DB today....this rumor is cover for a government agency trying to reverse the stock's direction.

SmittyinLA's picture

Qatar, Abo Dhabi, and China borrowed the loaned fiat based on future US rape trade deficits

bluskyes's picture

shorting opportunity

oncemore's picture

this may help to get over the running fiscal quarter.

What trick will they pull off in January?

Tom Green Swedish's picture

Is Abu Dhabi Qatar China retarded?  This compnay is fucking bleeding money.  Is this a fucking trap for the idiots to dump money into a failin Europe?  What are the terms of the deal?