Deutsche Bank self-inflicts a horse heal to attempt the reroll. The leading German bank is in a critical situation: alone in the second quarter of the current year is expected a loss of 2,8 billion euros.
Il restructuring plan developed by managing director Christian Sewing should cost approx three billion and expects a very sharp contraction in both investment and banking assets. The first to pay the price will be the employees of the institute: 2022 jobs will be cut by 18i.e. 20% of all staff.
Instead, the shareholders are saved, who will not be asked to dip into their portfolios to help the relaunch with a capital increase.
The restructuring plan also provides a 40% reduction in assets allocated to corporate and investment banking and the exit from global equity. Deutsche Bank itself communicates it in a note, specifying that it will also be created a bad bank, into which assets of 74 billion euros will flow.
According to Bloomberg, Deutsche Bank will close most of its equity activities in Asia and the Pacific area, while some employees in the Hong Kong offices of the German giant have already started to leave their jobs.
"Deutsche Bank is a Serie A player and must now aim to stay there," said German Economy Minister Peter Altmaier. In recent months, the German government had pressed why the institute merged with Commerzbank, another German financial giant.
As part of the plan, the note continues, the Bank - in addition to the sale of assets - will reduce the financial leverage by 288 billion euro. It is also planned to exit equity trading activities, concentrating on those of the equity capital market. The main activities will be those of investment banking, financing, currency markets, consultancy, asset management and private.
