Deutsche Bank May Find Silver Lining as Basel Hits Capital
- Basel Committee finished revamp of global standards last month
- Supervisors may give banks a pass on fallout from legal costs
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Deutsche Bank AG’s big hit from stricter global capital standards may be softened by the small print.
New rules give supervisors the option to exclude banks’ litigation payouts when calculating their so-called operational risk. If that happens, it would be a boon for Deutsche Bank and potentially improve returns for shareholders. The lender declined to comment specifically on the issue for this article.