A PYMNTS Company

Germany: Deutsche Bank to set up €50B “bad bank” as part of overhaul

By  |  June 17, 2019

Deutsche Bank is planning to overhaul its trading operations by creating a so-called bad bank to hold tens of billions of euros of non-core assets, reported The Financial Times.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The overhaul, first reported by the Financial Times, will also include shrinking or shutting equity and rates trading businesses outside of Europe.

    The bad bank would house or sell assets valued at up to €50 billion (US$56.1 billion) – after adjusting for risk – and comprising mainly long-dated derivatives.

    The measures are part of a significant restructuring of the investment bank, a major source of revenue for Germany’s largest lender, which has struggled to generate sustainable profits since the 2008 financial crisis.

    It is trying to turn itself around, but has faced hurdles such as allegations of money laundering and failed stress tests.  Its attempt to create a German champion through a merger with Commerzbank failed in April.

    Full Content: Financial Times

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.