Deutsche bank could benefit from Trump

Deutsche Bank (DB) stands to be one of the biggest beneficiaries of Donald Trump’s presidential victory. The bank was on the brink of bankruptcy but then saw its stock price spike nearly 20% after Trump’s surprise election victory.

Analyst reports suggest that European banks (EUFN) such as Credit Suisse (CS), Deutsche Bank, and UBS, which have been facing probes with US regulators, will likely have their litigations settled more quickly after Trump becomes president. Trump also appears poised to replace some of the officials in the Department of Justice.

Can Trump Save Deutsche Bank from Bankruptcy?

Faster and cheaper settlements

Deutsche Bank, in particular, could reach faster and cheaper settlements with the US Department of Justice once Trump is in office, according to Barclays. Deutsche Bank was asked to pay $14 billion in fine by the US Department of Justice over selling of mortgage-backed securities. The bank already has paid more than $10.5 billion in litigation expenses since 2008 and reported losses last year.

Trump’s plan to roll back banking regulations would also help Deutsche Bank in a major way. A Barclays (BCS) report highlighted that Trump’s policies related to splitting up commercial and investment banking operations would certainly benefit banks like Deutsche Bank, which have pure broker-dealer operations in the United States.

Latest articles

The future of the T-Mobile and Sprint merger remains unclear. Several state attorneys and Democratic senators have come together to oppose it.

According to President Trump, the US economy is “poised for big growth after trade deals are completed.” Markets are volatile amid the trade war.

Canopy Growth didn't impress investors with its earnings for the first quarter of 2020. The stock has fallen 12.4% since the company's earnings.

President Trump finally seems to acknowledge how the US-China trade war could impact tech giant Apple. Trump met with Apple CEO Tim Cook at a dinner.

As of August 13, HEXO (HEXO) was trading at 6.51 Canadian dollars—a fall of 30.9% since its third-quarter earnings on June 12.

On August 15, in an interview with CNBC, Mark Zandi said that the trade war hurts the US economy. The trade war has a negative impact on certain sectors.