(Reuters) – Deutsche Bank (DBKGn.DE) said on Sunday that it would make major cutbacks to its investment bank.
The following are the main details of Deutsche Bank’s planned overhaul:
SHRINKING THE INVESTMENT BANK
Deutsche Bank will exit its equities sales and trading business, which in 2018 bought in 1.96 billion euros ($2.20 billion) in revenue, but will retain a small equity capital markets business.
It also plans to cut back its fixed income business – traditionally seen as one of the bank’s strengths – particularly its rates trading desks.
These cuts are expected to lead to 18,000 job cuts.
In total the bank plans to shrink the amount of risk weighted assets allocated to its trading operations by around 40%.
BAD BANK
Deutsche Bank will create a bad bank, called the Capital Release Unit, to manage the wind-down of assets related to its investment bank.
These assets and businesses represented 74 billion euros ($83.06 billion) of risk-weighted assets and 288 billion euros…
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