The trio of problems dogging Deutsche Bank’s Postbank arm

By Jerry  Published On April 29, 2024
FRANKFURT, April 29 (Reuters) – Deutsche Bank (DBKGn.DE), opens new tab has warned a protracted lawsuit claiming it underpaid for Postbank could cost Germany’s largest lender up to 1.3 billion euros ($1.39 billion).
Deutsche acquired the no-frills Postbank during the financial crisis seeking to broaden its reach in Germany and a steady income stream after years of rapid international expansion.
Instead, Postbank has become a source of consumer complaints, regulatory scrutiny, labour strife and now, a possibly costly lawsuit.
Following are details on Deutsche’s troubles with Postbank:

WHAT IS POSTBANK?

Deutsche began its acquisition of Postbank, with its millions of clients and roots in the country’s postal system, during the 2008 global financial crisis.
Deutsche Bank now operates under two brands – with its blue Deutsche Bank logo and yellow Postbank signs – via hundreds of branches across Europe’s largest economy.

WHAT’S THE LATEST PROBLEM FOR DEUTSCHE WITH POSTBANK?

Deutsche Bank unexpectedly announced on Friday that it would make a provision to offset possible claims in a years-long litigation that it underpaid Postbank shareholders in its acquisition of Postbank.
Source: REUTER

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