Europe’s Largest Bank Watches Profit Slide 94 Percent

Europe’s Largest Bank Watches Profit Slide 94 Percent (Bloomberg)

Deutsche Bank AG, Europe’s largest bank by revenue, reported its third-quarter profit fell by 94 percent. Much of the loss occurred when the bank had to set aside 1.2 billion euros ($1.65 billion) for legal costs associated with subprime mortgage litigation. This comes on the heels of the bank’s Q2 18 percent profit drop, again partially due to legal woes. In addition to the company’s preparations for judgment against it, Deutsche Bank is also shedding billions in under-leveraged assets to fall in line with new European Union regulatory rules. While the rest of the sector seems awash in profits, Deutsche Bank (along with JPMorgan Chase and Bank of America) wallows through the mess it created itself. As an investor, which companies in the financial sector seem like a better bet for you?

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