Deutsche Bank to set up 50 bln euro bad bank -FT
(Adds Deutsche Bank statement, details from FT report)
June 16 (Reuters) - Deutsche Bank is planning to
overhaul its trading operations by creating a "bad bank" to hold
tens of billions of euros of assets and shrinking or shutting
its U.S. equity and trading businesses, the Financial Times
reported on Sunday.
The bad bank would house or sell assets valued at up to 50
billion euros ($56.06 billion)- after adjusting for risk - and
comprise mainly long-dated derivatives, the FT reported https://www.ft.com/content/d146b22c-9033-11e9-aea1-2b1d33ac3271,
citing four people briefed on the plan.
With the creation of the bad bank, Chief Executive Officer
Christian Sewing is shifting the German lender away from
investment banking and focusing on transaction banking and
private wealth management, the newspaper said.
As part of the restructuring, the lender's equity and rates
trading units outside continental Europe will be shrunk or
closed entirely, the report said.
The bank is planning cuts at its U.S. equities business,
including prime brokerage and equity derivatives, to win over
shareholders unhappy about its performance, four sources
familiar with the matter told Reuters in May.
"As we said at the AGM on May 23, Deutsche Bank is working
on measures to accelerate its transformation so as to improve
its sustainable profitability. We will update all stakeholders
if and when required," Deutsche Bank said in an emailed
statement on Sunday in response to the FT report.
Sewing could announces announce the changes along with
Deutsche Bank's half-year results in late July, the FT reported.
($1 = 0.8919 euros)
(Reporting by Ishita Chigilli Palli and Kanishka Singh in
Bengaluru; Editing by Sonya Hepinstall and Peter Cooney)
First Published: 2019-06-16 22:12:44
Updated 2019-06-16 23:04:39
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.