BRN 481 Case #2: due 6/8/2018


On January 17, 2017 the US Department of Justice announced that it had settled a case against Deutsche Bank (DB) for a payment of $7.2 billion. On January 18, 2017 the US Department of Justice announced that it had settled a case against Credit Suisse (CS) for a payment of $5.28 billion. While these settlements were the largest, both banks were involved with several other lawsuits between 2011 and 2018. The course web page has an Excel spreadsheet file (in ZIP format) BRN481Case218.ZIP that contains daily stock returns for CS as well as DB, the Standard and Poor’s market portfolio from January 2000 through May 2018. It also has worksheets containing several news stories about both Deutsche Bank (DB_RMBS) and Credit Suisse (CS_RMBS).

Analyze the stock market reaction of CS and DB to the announcement of the settlements. Provide and interpretation of whether these were good or bad news for CS and DB, and why. Feel free to use internet resources (e.g., Google) to learn more about these companies and these events.

You should do this assignment in groups and prepare a concise report that explains your analysis and findings. Neat, coherent presentation of high-quality analysis is the goal of this assignment. Do not include lots of computer output (although you may copy small portions of output that include relevant statistics).


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Click here to view a possible answer to this case. [Excel spreadsheet]

Click here to download the Excel worksheet with the answer.


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Last Updated on 6/12/2018