Deutsche Bank hit by costly clean up

Deutsche Bank has plunged to a 2.6 billion-euro quarterly loss as it moved to clean up its balance sheet. The bank’s co-Chief Executive Anshu Jain said the legal and restructuring charges it had taken were so that it would not have to ask shareholders for cash. “We have been very consistent. We have said we do not believe it is in our shareholders’ best interests. We have shown that we are willing to take pain,” Jain told a conference call when asked about a possible rights issue. “This said, clearly, it is a very uncertain world. There is a plan B. We will not rule out any option that is in the best interest of Deutsche Bank.” The charges include one billion euros set aside to cover legal risks from its potential exposure to the Libor scandal involving interest rates fixing.