Deutsche Bank AG has entered into a three-year deferred prosecution agreement with the U.S. Department of Justice (DOJ) and will pay nearly $125 million to avoid prosecution for bribery and market manipulation, according to Reuters.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Acting U.S. Attorney, Seth DuCharme, said in a statement, “Deutsche Bank (DB) engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others,” in order to win and retain “lucrative business projects.”
Deutsche Bank has accepted responsibility for the violations that occurred between 2008 and 2017, which involved dealings in Saudi Arabia, Abu Dhabi, China and Italy.
According to a Reuters report, Deutsche Bank has been entangled in a series of scandals recently including making improper payments and bribes to consultants and judges as well as manipulating metals futures prices. The bank has also been investigated several times for its dealings with long-term client, Donald Trump. (See DB stock analysis on TipRanks)
RBC Capital analyst Anke Reingen reiterated her Sell rating on DB last week and lowered her price target to $11. This implies downside potential of around 6% from current levels.
Reingen noted that investment banks ended the fourth quarter of 2020 strongly. However, 2021 could be tougher due to a likely decline in capital markets business.
Overall, consensus among analysts is Moderate Sell based on 1 Buy, 6 Holds and 8 Sells. The average price target of $9.61 suggests downside potential of around 18% over the next 12 months.
Related News:
Apple Removes Parler From App Store – Report
Domtar Slips 5% On Personal Care Unit Sale Deal
Royalty Pharma Ramps Up Dividend By 13%
