News Summary: Deutsche Bank posts steep 4Q loss
THE SURPRISE: Deutsche Bank posted a big and unexpected fourth-quarter loss as it reshapes its business to meet new regulatory requirements for banks to keep larger financial buffers against losses in the wake of the 2007 financial crisis.
THE NUMBERS: The global bank lost €2.15 billion ($2.91 billion) in the final three months of 2012, versus a €186 million profit a year earlier. Analysts surveyed by FactSet expected a profit of €62 million.
THE DRIVER: Deutsche Bank took accounting losses of €1.9 billion for the fallen value of businesses it had acquired before 2003, and for risky assets and investments that it is in the process of selling.