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please answer the following question
1. Deutsche Bank has recently had some negative performance results. Please outline some of these including reduced earnings and stock price results. It may assist you to provide some graphics/figures to aid in your analysis. Please remember to include headings, figure numbers and data sources.
2. Deutsche Bank has been involved in a number of financial scandals. Outline at least 3 of these.
3. Deutsche Bank has operations around the world. Please describe the structure of the bank. It may help to use any graphics from a recent annual report or other sources.
4. Geographically where does Deutsche Bank invest? How does this vary by industry or segment types?
5. What are the future prospects of Deutsche Bank in your opinion with their operations globally, and also focusing specifically within Germany? Does fallout from COVID?19 play a role?
Answer:
1.Some negative performance results of Deutsche Bank
Deutsche Bank has reported some negative performance results, such as reduced earnings and stock prices. The Bank has recorded some financial losses and losses in the value of its assets. The Shares of Deutsche Bank fell by approximately 8 % after the bank reported a loss of 832 million euros due to restructuring its costs and weaknesses in its fixed income-trading. Reduction in the Deutsche Bank's earning and shares was attributed to its decision to exit its business equities, macroeconomic uncertainties, and negative interest rates (Allayannis, Yemen, & Holtz, 2020).
2. Financial scandals that Deutsche Bank has been involved
The Deutsche Bank has been involved in several financial Scandals despite it being one of the leading banking institutions worldwide. Three of the financial scandals that the bank has been involved include;
Laundering Money in Russia was one of the scandals that the bank was involved in. As a result, it was fined approximately $ 360 million by the UK and the US authorities over money laundering (Ehrenhard, & Fiorito, 2018).
The Labor Interest rate is another scandal that Deutsche Bank was involved in. As a result, it was fined 25 billion dollars by authorities in the UK and US for taking part in the interest rate scam.
Also, the bank was involved in the sale of toxic securities such as mortgage-backed securities.
3 Structure of the Deutsche bank
Deutsche Bank has operations around the world. It provides financial services in approximately more than 70 nations around the globe. The bank is mainly divided into four main business units: the corporate bank, investment bank, private bank, and asset management. The bank's four divisions perform key management tasks( Allayannis, Yemen, & Holtz, 2020).
4. Geographically where does Deutsche Bank invest? How does this vary by industry or segment types?
The Deutsche Bank focuses its investments mainly on financial services and asset management in various parts of the world, with its main headquarters in Frankfurt, Germany. The Geographical location tends to vary the industry or segment in various ways, including; the Bank is a good position to grow the Corporate Bank, which caters to the corporate and commercial clients (Shannon, Yu, & O'Rourke, 2017). The Investment Bank segment and, in this case, the bank provides advice to its corporate clients on the equity capital market business.
5. Prospects of Deutsche Bank
In my opinion, the prospects of Deutsche Bank with respect to its operations globally are to transform its business model and ensure that it maximizes its profit margin, enhances shareholders' returns, and drives long-term sustainable growth. The fallout from Covid -19 role-plays an important role in the bank's transformation because it will ensure that it establishes an appropriate model on how to deal with future pandemics and avoid a financial crisis.
References
Allayannis, G. Y., Yemen, G., & Holtz, P. Deutsche Bank Restart: Goodbye Goldman Sachs of Europe?
ML Ehrenhard, & TL Fiorito (2018): Corporate values of the 25 largest European banks: Exploring the ambiguous link with corporate scandal journal of public affairs, 2018 - Wiley Online Library
Shannon, J., Yu, B., & O'Rourke, J. S. (2017). Deutsche Bank, AG: Mortgage securitization and financial collapse. The Eugene D. Fanning Center for Business Communication, Mendoza College of Business, University of Notre Dame.