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Deutsche Bank is discussing the reduction of operations in the United States

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Deutsche Bank is discussing the reduction of operations in the United States

Deutsche Bank is discussing the reduction of operations in the United States
October 17
14:00 2016

As Bloomberg reports, citing its sources, Deutsche Bank AG is studying the possibility of the reducing the volume of transactions in the United States. The sources say that this possibility is being discussed by the Deutsche Bank management in the context of the general reform of the bank’s strategy.

The Supervisory Board of Deutsche Bank was discussing the fate of the American subdivision during the last meeting. Also, as noted by the sources, this issue was raised during the talks with the US regulators.

According to one source, the business reduction will mainly concern the investment bank’s operations, as this sector imposes the highest capital requirements. It has become known that the final decision hasn’t been taken yet.

In September this year, the US Department of Justice obliged Deutsche Bank to pay a fine in the amount of $ 14 billion in order to settle claims about irregularities in the sales of mortgage securities from 2005 to 2007.

Deutsche Bank set aside 5.5 billion euros for court costs in the II quarter this year. Chief Executive Officer of Deutsche Bank John Cryan made some statements that he was not going to attract additional capital. Cryan said that he was counting on the reduction of the US regulators’ requirements.

According to Sueddeutsche Zeitung, the reduction of the business volume of the bank in the United States seems to be more real than the sale of the subdivision in the sphere of the asset management.

Deutsche Bank securities have fallen in price by 0,4 % during the trading session in Frankfurt on Monday. The bank has lost 46% of its value since the beginning of 2016.

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2 Comments

  1. Grosso
    Grosso October 17, 15:51

    The first doubts about the financial stability of Deutsche Bank emerged at the beginning of the year, when investors began to ask questions about its susceptibility to the risks in the energy sector and potential cash crisis.

    Reply to this comment
  2. L.Marso
    L.Marso October 17, 17:02

    Despite the conflicting talks as to whether the German government has a bank rescue plan, John Cryan tries to convince investors in the stability of Deutsche Bank. Is it a myth or reality?

    Reply to this comment

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