Short life

Any piece of news on Wall street lasts only till the next piece of news arrives. Yes, we know that. But reversing Deutsche Bank from " Overweight"  to "Neutral" in just three weeks!

Well, the Basel Committee is proposing a revision to its rules governing securitized assets, which will cause Deutsche Bank's Tier I capital ratio to drop from 10.2 to 8.6 in 2014!

Deutsche Bank however, has been proactive in raising capital. It just raised Tier 2 capital in the form of $1.5bn 15-year non-call 10 subordinated notes and has set up the scene for another round of Tier 1 capital as well.

More rules, more reserves...it will be an interesting wait and see till all the regulations are finalized.

Reference:
Revisions to the Basel Securitisation Framework