Before the real estate and financial crisis of 2008, American banks earned big with the mortgage business. It was largely based on bad debt, which should never have been issued. It was these transactions that made the real estate crisis possible.
The German lender has beaten analysts' expectations for third-quarter profit and has settled another case of its financial crisis wrongdoings. But meagre revenues show the bank is far from being out of the woods.
Shares in Germany's biggest lender have fallen 6 percent, after it confirmed plans to raise new capital with a new multi-billion-euro share issue. The bank seeks to reinvent itself following major financial setbacks.
Deutsche Bank has reached a $7.2 billion agreement to resolve a US investigation into its dealings in mortgage-backed securities. The deal removes a major legal hurdle for the bank.
Germany's biggest lender, Deutsche Bank, has agreed to pay a fine of close to a hundred million dollars to settle a fraud case in connection with the bank's use of a US shell company to avoid paying taxes.
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