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.