[ Melanie Gretchen ]

Deutsche Bank let its 2012 profit slide in favor of potential cost of legal proceedings.  All told, Germany's largest lender decreased its 2012 pretax profit of €600 million ($775 million) for future legal problems.  Left over, net profit was €291 million, some €400 million less than the bank first reported on 1/31.

The German bank attributed the need for money to the numerous lawsuits related to its sales of mortgages and mortgage-related derivatives in the United States before the financial crisis.  In addition, the Frankfurt-based bank faces the global investigation into rate manipulation, for which the bank set aside an initial stash.  Now reserves total €2.4 billion.  [C-I Note: Is that the price to pay to (i) avoid taking a direct government bailout during the financial crisis, and (ii) hold its own among large American and British investment banks?]

For further details, go to:   [Dealbook, 3/20/13].

To contact Melanie Gretchen: melanie@compliance-insights.com.