Deutsche Bank urged to shrink US investment division … TELETRADER
Deutsche Bank urged to shrink US investment division
German investment banking giant Deutsche Bank is facing more pressure from the regulators to continue to decrease its investment division in the United States, the Financial Times reported on Monday, citing people
familiar with the matter. According to the report, the company’s supervisors believe its American part of the investment bank remains unprofitable and needs to be cut back.
“We started to make our regulatory expectations [concerning the shrinking of CIB operations] clear about two years ago, and we continue to have the view,” one of the senior watchdogs said. Meanwhile, the official,
who wasn’t named, stated that the potential Deutsche Bank’s deal with Commerzbank will have no effect on regulators’ decision. The two German banks have been in talks over the merger since March but there is still no certainty the deal will go through.
Meanwhile, Deutsche Bank said that it already started downsizing its investment banking division, bringing the debt levels to 13% and reducing its headcount by 7%.