2016-10-16bloomberg.com

Deutsche Bank AG, Germany's biggest bank, is exploring shrinking its U.S. operations as mounting legal expenses threaten to eat into the firm's capital, according to two people with knowledge of the matter.

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Cutting back the U.S. business would affect mainly the investment bank, said one of people, because of the capital it requires. No final decisions have been made and discussions about the U.S. business are ongoing, according to the people.

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Under U.S. regulatory requirements, Deutsche Bank needs to have a certain amount of capital dedicated to funding its U.S. business. Shrinking it would be one way to reduce the firm's capital needs should the settlement with the Department of Justice exceed the amount the bank has put aside for legal disputes.



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