Bloomberg/Jason Alden

INVESTMENT

Deutsche Bank sells $50 billion book of assets to Goldman

SHARE THIS ARTICLE
Deutsche Bank’s balance sheet reduction is a cornerstone of Chief Executive Officer Christian Sewing’s sweeping restructuring, unveiled in July 2019.
THURSDAY 28, NOVEMBER 2019

Deutsche Bank sold another chunk of unwanted assets to Goldman Sachs Group as part of a radical restructuring that is seeing the German firm exit businesses where it’s been unable to compete, reported Bloomberg.

The nation’s largest lender recently sold securities with a notional value of about GBP 40 billion ($51 billion) to the US bank. The assets are tied to emerging market debt and were previously housed in Deutsche Bank’s wind-down unit.

It’s at least the second time that Goldman bought securities that Deutsche Bank has earmarked for disposal as part of its latest turnaround plan. In September 2019, the US investment bank purchased the Asian portion of a portfolio of equity derivatives that the German lender had put up for sale.

Sewing is drawing down the bank’s capital buffer to pay for the cost cuts and has promised regulators to reduce risk at the bank in return.

The Deutsche Bank chief has vowed to cut the leverage exposure—a regulatory measure of risk—in the wind-down unit to EUR 119 billion ($131 billion) at the end of the year, from EUR 177 billion at the end of September 2019. Sewing previously reached an agreement to transfer the hedge fund business to BNP Paribas and sold other portions of the equity derivatives portfolio to Barclays and Morgan Stanley.

 

TAGS: Deutsche Bank Barclays Morgan Stanley BNP Paribas
Print Friendly Version


RECOMMENDED NEWS


BRANDS MAGAZINES LATEST EDITION


CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.


Subscribe to our News Letter

Subscribe

© 2018 CPI Financial. All rights reserved.

No part of this website may be reproduced or used in any form of advertising without prior permission in writing from the editor.