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European banks struggling to stay above water

Deutsche and Credit Suisse face billions in settlements that will drag on profitability for years

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The troubles at Deutsche Bank, the largest lender in Europe's dominant economy, have loomed largest over markets. The latest settlement will cause a US$1.2 billion pre-tax hit to fourth-quarter earnings, which may push the bank into its second-straight annual loss.

Frankfurt

RELIEF that Deutsche Bank AG and Credit Suisse Group AG cleared legal hurdles is likely to soon give way to concern over a bigger problem: European lenders are still struggling to make money.

While the combined US$12.5 billion in settlements the two agreed to pay to

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