http://hosted.ap.org/dynamic/stories/E/EU_DEUTSCHE_BANK?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-05-19-06-21-16
FRANKFURT, Germany (AP) -- Deutsche Bank AG says its plan to raise 8 billion euros ($11 billion) in new capital from investors will strengthen its finances as it faces tighter regulation and uncertain costs from litigation.
Co-CEO Anshu Jain told analysts during a conference call Monday that the fresh capital would also help it meet "unforeseen challenges" that may lie ahead. Jain said it was "impossible to quantify" the additional demands regulators may place on banks as they press ahead with efforts to make the financial system more resistant to trouble.
Chief Financial Officer Stefan Krause said on the call that the bank also faced a "challenging and unpredictable litigation environment" even after setting aside billions for fines and lawsuits, much of it relating to events that occurred years ago.
The capital increase comes as banks across Europe have been shedding risky investments and raising new financial buffers as they seek to meet new regulatory standards. The European Central Bank is conducting a detailed review of large banks' finances and holdings as it prepares to take over as the European Union's centralized banking supervisor in November.
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