Deutsche Bank Loses Billions, Shares Rise

Deutsche Bank AG, Germany’s largest bank and one of the top global banks, announced a large loss for the fourth quarter. The bank has to struggle with high anticipated legal fees due to several scandals. It is also undergoing a major shift in corporate culture and cost-cutting.

Juergen Fitschen (L) and Anshu Jain (R), Co-CEOs of Deutsche Bank, speak during the company's annual press conference to announce its 2012 financial results in Frankfurt, Germany, Jan. 31. Deutsche Bank announced a fourth quarter, pre-tax loss of $3.5 billion, largely due to restructuring and litigation costs. Thomas Lohnes/Getty Images

Deutsche Bank AG, Germany’s largest bank, reported worse than expected fourth quarter results Jan. 31. The reasons for the $3.5 billion pre-tax loss were extraordinarily large write-downs and provisions for legal expenses.

“Our reported results reflect a number of decisions we took in the fourth quarter. We have clearly communicated our commitment to taking determined but tough decisions, in order to deal with past issues head-on, and prepare Deutsche Bank for the future,” said Co-CEO Anshu Jain.

Given several scandals and a plan to reshape the bank until 2015, it is likely that the management decided to “kitchen sink” the fourth quarter of 2012 to start with a clean sheet in 2013. The Co-CEOs Jürgen Fitschen and Anshu Jain took over from previous CEO Josef Ackermann last summer and were soon facing an uphill battle.