Deutsche Bank plans €50bn 'bad bank' as part of restructure - reports

Focus on private wealth management

Deutsche Bank is planning a major restructure that would see the bank move away from investment banking, in the process creating a 'bad bank' to hold tens of billions of euros.

The overhaul would mean Deutsche's equity businesses outside continental Europe could be closed entirely, with the bank set to focus on private wealth management and transaction banking, the FT reports. The bad bank would hold or sell assets valued by the German lender at up to €50bn after adjusting for risk - accounting for 14% of Deutsche's balance sheet - and would mainly include long-dated derivatives. DWS replaces CEO Moreau with company veteran Woehrmann Chief executive Christian Sewing is expected to announce the changes in the German bank's interim results at the end of Ju...