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Shocker: German Bank That Says We Should Give Money Away Also Sees Profits NOSEDIVE

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Robert Donachie Capitol Hill and Health Care Reporter
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Deutsche Bank’s profits nosedived in the second quarter to $22 million, down from over $887 million at this same time last year. Incidentally, analysts at the same bank recently indicated that giving away ‘helicopter money,’ a kind of economic stimulus, would be a great idea.

Though it isn’t just ideas like free money that have resulted in the bank’s financial dip. Many factors contribute to such a fall: the Brexit decision, European central bank monetary policy, corporate litigation, and CEO John Cryan‘s attempts at restructuring the bank.

The bank was charged with $316.3 million in goodwill impairments, restructuring and severing charges of $229.7 million, and litigation charges totaling $133.2 million, reports Business Insider. So it’s no wonder that Cryan said recently that free money would work, stating “we believe that such monetary financing could be a significant positive for equity markets.”

It appears the restructuring effort is about to turn into high-gear. Cryan said that if the current weak European economy continues, the bank will have to “be yet more ambitious in the timing and intensity” of the restructuring efforts. He also echoed this statement to his employees.

Deutsche Bank is currently undergoing “160 projects” as part of it’s 2020 strategy, reports Business Insider. The bank has cut the number of databases it maintains to four from fifty and has “decommissioned 500 applications in technology.”

The bank has also closed 188 branches and cut 3,000 workers. It has also shut down operations in Russia and is only “halfway through pulling out of countries it plans to exit,” reports Business Insider.

Competitors, Morgan Stanley and Goldman Sachs, have also warned that they plan to cut more jobs in the market does not improve.

Deutsche Bank, however, has had a much tougher time than other banks lately. It had to ensure that it could pay back the coupon on it’s bonds earlier this year, which is astounding for both a bank of it’s size and renown. The bank’s share price is down over 40% this year, and one investment officer has already labeled it his number one short of 2016.

Cryan remains optimistic. He said “we’ll not deviate from taking tough decisions just to flatter results in the short-term,” reports Business Insider. Cryan continued by saying that they had made decisions for short-term results in the past and it “led to many failed restructurings.”

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