There is a sign above the entrance of a bank branch of Deutsche Bank AG in Frankfurt on 4 July 2016.
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Deutsche Bank executives can expect an explosive meeting with shareholders on Thursday as the bank's falling stock price and growing scandal rallies the board.
The fiercely contested German lender suffered a price decline of a record low on Thursday with a decline of almost 5% since the beginning of the year. On Monday, UBS downgraded its stock from "neutral" to "sell" and lowered its price target from € 7.80 to € 5.70 to remove Chairman Paul Achleitner before his term expires in 2022. According to CNBC sources, however, the bank expects Achleitner continues to hold the lead with the approval of around 60% of the shareholders, and the collapse of the merger talks with the domestic competitor Commerzbank. Investment Banking (IB) is the specific department for creating capital for other companies, governments or corporations.
The UBS downgrading note highlighted that Deutsche IB was a "primary beneficiary" of Commerzbank's business and contributed to the reduction in refinancing costs and spreads as well as overall profile balance.
Influential shareholder representative Institutional Shareholder Services (ISS) has advised its members to vote against the discharge of the board of management of the Germans, the vote of confidence under German company law. It claimed that the shareholders had borne the brunt of the monetary and reputational damage caused by a series of scandals, mainly due to the bank's failure to maintain its anti-money laundering (AML) controls.
The German has been the source of much negative publicity in recent years ̵
The bank defended its risk and control system on the grounds that it had "significantly improved" "Over the past three years, however, the reputation cloud overhanging the bank has only darkened in recent weeks after it was reported that it prevented the marking of suspicious transactions involving companies affiliated with President Donald Trump and son-in-law Jared Kushner.
The recent scandal surrounding Deutsche Bank occurred after a report by the New York Times alleged that Deutsche Bank's management ignored the agency's disclosure of employee information on transactions in 2016 and 2017 that triggered their automated controls against tort.
The transactions allegedly involved trump and kushner-controlled companies, But the bank declined the report with the statement that the "vorsch Anyone who has been reassigned or dismissed to address concerns about a customer is categorically wrong.
The President's relationship with Deutsche Bank has been under investigation for a long time, and Trump sued the bank last month to block compliance with Congressional summons calling for access to his financial records.
President Donald Trump Approaches journalists as he leaves the White House for a rally in Pennsylvania on May 20, 2019 in Washington DC
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A federal judge in New York City said Wednesday that Deutsche Bank could Financial documents relating to President Donald Trump and his dealings in response to subpoenas handed over by two Democrat-led House committees.
Judgment by Judge Edgardo Ramos came after a hearing at Trump's attorneys, his three older children, Donald Jr. Eric and Ivanka and the Trump organization argued that the subpoenas to the two banks should be lifted An appeal against the decision is far from certain.
Deutsche Bank was a consistent lead lender to Trump's real estate business, and the tweeter tweeted angry replies to suggestions that other banks refused to cooperate with him for lack of credit that he "needed no money."
Money Laundering, Interest Rate Manipulation Scandals
Last month, a secret internal memo from The Guardian revealed that Deutsche Bank could take legal action over the massive global laundromat. Used by Russian criminals with connections to the Kremlin and the KGB to transfer money to the Western financial system between 2010 and 2014. A spokesman told CNBC that the bank "remains committed to providing adequate information to all approved investigations".
November 2018 The bank's Frankfurt office was searched by German police, prosecutors and tax inspectors in a money laundering probe that emerged from the Panama Papers scandal. German executives attributed the loss in the fourth quarter partly to the resulting negative publicity.
In 2017, the bank was fined US $ 630 million by US and UK regulators for allegations of Russian money laundering between 2011 and 2015. The German anti-money laundering control mechanisms have allowed fictitious transactions worth up to $ 10 billion, since they were unable to identify the customers involved in the transaction and the source of the money.
This happened just two weeks after reaching the Germans A settlement with the US Department of Justice (DOJ) over $ 7.2 billion on the sale and pooling of toxic mortgage-backed securities in the run-up to the global financial crisis.
Two years earlier, Germany's leading lender had already received a record $ 2.5 million. The Libor scandal investigation resulted in a $ 1 billion fine for interest rate manipulation imposed on regulators on both sides the Atlantic covered $ 258 million of US regulatory compensation for violating sanctions against a number of countries, including Libya, Syria, Iran and Sudan.
– Annette Weisbach of CNBC contributed to this report.