Deutsche Bank's Stock Price Slides 25% in 2014

[Corey Dutton]

Shareholders of Deutsche Bank protested at its annual meeting last Friday over its announcement of a new capital raise of 8 billion Euros. Shareholders are questioning the timing of this capital raise, since the bank’s share price has slid by 25% since January 2014. Union Investment, a top shareholder in the bank, was among the protesters at the annual meeting on Friday, and was quoted as saying, “The share price performance is a tragedy, a lot of investor confidence has been lost; the capital raisings do not make it better.”

Top management has also come under extreme fire for this as well for the bank’s high litigation costs, referring to 5 billion Euros paid out over the last 5 years in settlements and litigation-related costs. Mr. Jain, the bank’s CEO, commented, “You should trust us because the rebuilding of Deutsche Bank is working, because we are strengthening capital and reducing risk.”

(Source: Financial Times: http://www.ft.com/intl/cms/s/0/87ded282-e191-11e3-9999-00144feabdc0.html#axzz32SSph4Av)

Posted by Corey Curwick Dutton