Deutsche Bank Not The Only Bank Sweating The Post-Recession Landscape

It wasn't just Deutsche Bank that was grappling with big questions about the future at the International Monetary Fund meetings in Washington last week. Many others in the banking industry are also still figuring out what they should be doing nearly a decade after the financial crisis. They are grappling with anemic economic growth, wafer-thin returns on lending, and the possibility that regulators will further hike their cost of doing business. Deutsche Bank is scrambling to overhaul its operations as it faces a multi-billion dollar fine for selling toxic mortgage-backed securities in the United States. The bank’s immediate obstacle is the U.S. Department of Justice's demand for a massive fine over the sale of bad mortgage bonds that could far exceed the $6.2 billion in provisions that the bank has set aside. Such a bill could require it to raise more capital. But Deutsche Bank’s fundamental problem is that its large investment banking business doesn’t fit the post-crisis era. But Deutsche Bank isn't the only financial institution flailing away at signs of fundamental change in the industry. Frederic Oudea is the chief executive of French bank Societe Generale. He said, “This new world of low interest rates and even negative interest rates is something that is very difficult." The Institute of International Finance is a trade group for big banks that holds its annual meeting alongside the IMF. He told an audience from the IIF, “It is a game changer, not just for banks but for the whole financial industry." http://bit.ly/2dreEvK http://bit.ly/1fJ5yqZ This video was produced by YT Wochit Business using http://wochit.com


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