The announcement came a day after Deutsche Bank finalized a $7.2 billion settlement in the USA over its role in selling mortgage securities that contributed to the financial crisis.
Deutsche Bank will not be handing out bonuses to senior people this year after paying out $7.2 billion to the DoJ to settle it's rather batshit behavior during the mortgage crisis.
In December, the bank made an agreement to pay $3.1 billion for a civil monetary penalty, and pay $4.1 billion in consumer relief in the United States, which will be delivered over 5 years.
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Deutsche Bank's shares on Germany's Xetra Dax were up 0.2% following the announcement.
The original settlement was reported to be around $14 billion, which sent Deutsche Bank's stock into a tail spin in September 2016. Specifically, Deutsche Bank will provide loan modifications, including loan forgiveness and forbearance, to distressed and underwater homeowners throughout the country.
"Now that we have a clearer idea of the financial impact of the settlement with the U.S. Department of Justice and our performance for the year, we feel that tough measures are unavoidable", Deutsche Bank said in the memo. Bank of America Corp (BAC.N), for instance, agreed to pay $16.7 billion, which also covered Merrill Lynch and Countrywide Financial. "Time and again, the bank put investors at risk in pursuit of profit".
"Our conduct in this matter, which occurred from 2005 to 2007, falls short of our standards and is unacceptable. We know how hard you work for the bank", read a message sent to staff, signed by members of the bank's executive team, including chief exec John Cryan. "We have subsequently exited numerous underlying activities and comprehensively improved our standards". "We are, however, nearing our objective of being able to concentrate primarily on the future instead of repeatedly having to look over our shoulders at past events".