Lender · Salt Lake City, UT · Member since 2012 · 714 posts · 169 votes
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.”