Breakingviews: Deutsche looking worse than UBS after Q3 hit
Tuesday, October 29, 2013 - 04:11
Oct. 29 - Regulatory and legal costs hit both UBS and Deutsche Bank, but the German giant looks worse off, says Breakingviews, and its fixed income pain could exceed its rivals.
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So the cost of cleaning up by the banking industry had sex. Q3 results from Deutsche -- UPS litigation regulation. I've -- my response was Robert Cole. Joins me I -- that these the army and these make for pretty pretty tough reading and both of them for different yes among. Pleasant surprises up from UBS and Deutsche from -- console to -- not a particularly in the litigation. I think it's quite important to try and separate the two stories out -- than see them as you might be tend to as. It too big European investment banks. Getting those sightings all the stories so that's look at you be exposed. I think. If it bit underline -- result some bad that'll brilliant that not far off expectations sites online business. He's okay it says about 6% exactly when Lou what's the market react and it's that these a reaction. Two. Some stipulations by the Swiss regulates. That UBS has to hold additional capital. Against risks that might come a blow off a long look along down the road. And one of the risks it's. People are assuming. It did the regulates -- is wired about litigation risks I think that that pot of money bits UBS has. To salute. It as an insurance policy if you'd like it is that for a whole number of reasons but there's interventionist and particularly. The game and entirely soul. Want what's happening here but there is some thought but there is. Some sort of foreign exchange Condit scandal going on -- foreign exchange. Bill Gates had to do it as well that it has been some chapter in recent weeks about. How. You know. Hops that is spins them. And alternates if -- like going on on on the foreign exchange market in the slot kind of thing that as well which we need some clarity and but sadly the big bears that says. And that means that. You know who you guess that's available money that means less money to to to investments trading. It's -- said that -- does does that. He's the the pick up on something George Hayes said Adam good news this -- -- him. A rights issue what why did we say well if it it's it's it's strong it's capital position is quite strong so what's taking hits on capitol. It's quite well capitalized. On it doesn't doesn't need that so on the other side -- Deutsche. And it's got some of these litigation risks as well. And it's it's had to puts more money aside to fund. Possible future fines but hey we do have under our underlying issues -- debt -- and thick as they -- it fixed income and currencies. Has been you know -- -- -- -- distinctly soft spot across the industries in the US banks who sold last week complaining about how thick was gunned down in the strike. Coach is doing slightly worse than the news business pages. And on not one Jordan Dominique -- of these pieces of thinking well. Does this mean that it's -- a lot of threats of more capital. In comparison to EPS. Which seems it is. -- to be having problems but they adequately capitalized so we're wondering a bit more tell whether this month that they French Jane that and it seems and -- It was easily our is pretty tough -- both of them for different reasons actually and say. These. -- united and it'll be very nice to see whether -- settles out to the into the van load of it will clarity. But I think there is certain amount of shall rule among -- going on about what's happening and what's happening man is this happening is that happening which would be some current. Thanks very much for that little -- I'm if -- watch our US bring you show every date twelve studies and seventeen senate seat GMT. And that's the problem -- starts.
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