Breaking News This Morning ...
Deutsche sells insurer: Deutsche Bank, which is under heavy pressure to raise capital, said Wednesday it sold its Abbey Life insurance unit to Phoenix Group Holdings for $1.22 billion. The bank's stock, which hit a 33-year low earlier this week, as it faces a potential $14 billion penalty in the U.S. for allegedly selling toxic mortgage-backed securities, in addition to other problems, including a failed stress test and weak quarterly earnings. The sale, however, will result in a nearly $900 million loss for the German bank. The BBC reported Wednesday morning that Germany is devising a
Receiving Wide Coverage ...
The long arm of the claw: Wells Fargo's board plans to claw back $60 million in compensation — $41 million from CEO John Stumpf and $19 million from former community banking chief Carrie Tolstedt — for their role in the bank's phony accounts scandal. According to the Wall Street Journal, the money Stumpf is forfeiting represents about a quarter of the total compensation he has accrued over his nearly 35 years at the bank and marks "one of the biggest rebukes to the head of a major U.S. financial institution." Stumpf is
Wells also said it plans to
Gretchen Morgenson writes that Wells Fargo's
The unauthorized accounts scandal isn't Wells' only problem, although it's certainly the biggest. Without admitting or denying wrongdoing, the bank
RBS settles: Royal Bank of Scotland agreed to pay $1.1 billion to the National Credit Union Administration to settle charges it sold toxic mortgage-backed securities. RBS said the cost of the settlement was "substantially covered by existing provisions." The U.K.-based bank still faces unresolved lawsuits from the Department of Justice and the Federal Housing Finance Agency. Coming shortly after DOJ filed a $14 billion claim against Deutsche Bank, the RBS settlement "underlines how the focus of US authorities has switched to European lenders," the Financial Times said.
Wall Street Journal
Unsecured focus: Goldman Sachs' new