Deutsche Bank Stock Sale Comes With Warning About Probes
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Deutsche Bank AG, seeking to raise $11.6 billion of capital, braced investors for a deepening trading slump and potential damage to its business from international probes of currency rigging and hiring practices.
A “challenging market environment” means the investment-bank division may post a larger year-over-year drop in revenue this quarter than in the first three months, when it fell 10 percent, the Frankfurt-based firm wrote in documents released yesterday for the stock sale. The foreign-exchange inquiries have potential to result in “significant financial penalties and other consequences,” it said.