Tuesday 30 April 2013

Capital increase of Deutsche Bank

DB a German bank

Of the too big to fail banks Deutsche Bank has been the most under capitalised bank. The amount they have kept in their coffers has been far too low for such a systemically important bank. So they decided, similar to Commerzbank, to do it fast instead of slow and are therefore diluting their around 930 million shares with almost 10% meaning additionally 90 million shares will be created.

These will be sold to institutional investors at a prime price with the benefit that they will get the full dividends for those shares which means that the result for last year will become even worse. Also in this case, just like with Commerzbank, I am not happy with the development and it annoys me that the institutional investors are getting a benefit that is not offered to me.

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