Deutsche Bank warns of $7B loss, cuts dividend, stock drops 6%

Deutsche Bank warned Wednesday that a series of charges, including litigation expenses, will result in a third-quarter loss of $6.97 billion, or 6.2 billion euro.
The Frankfurt-based bank, which has operations in the United States, may also reduce or eliminate its dividend for the rest of the year, it warned in a press release.
The company's NYSE-listed shares fell more than 6% in after-hours trading after having ended the trading day at $28.77.

USA TODAY

Deutsche Bank headquarters raided in probe

It's been a rough year for Germany's largest bank. In June, German law enforcement officials raided the bank's Frankfurt headquarters on suspicions of tax fraud related to customer securities transactions. The raid came just two days after the company's co-chief executive officers announced plans to resign amid growing questions over their leadership.
On Wednesday, Deutsche Bank warned of an impairment of approximately $6.5 billion (5.8 billion euro) tied to "higher regulatory capital requirements"  in its corporate and securities business, as well as its private client unit.
The bank also warned of an impairment of $674 million tied to Deutsche Bank's 19.99% stake in Hua Xia Bank Co., a publicly traded bank in Beijing, as well as $1.3 billion in litigation expenses.
As a result of the charges, Deutsche Bank expects to report a third quarter net loss of $6.97 billion (6.2 billion euro) when it reports earnings on October 29.