7/4/2019, 8:08 PM (Source: TeleTrader)
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Deutsche plans to downsize investment banking unit - report

Deutsche Bank AG's chief executive Christian Sewing plans to reduce the bank's workforce by as much as 20% and to shrink its investment banking unit, Suddeutsche Zeitung reported on Thursday. The second part of the long-awaited reform would involve the creation of division for its major corporate clients.

According to the people familiar with the matter and documents on this issue, the new internal unit should be aimed at large corporate customers and would simultaneously offer them services such as trade finance or payment transactions. Sewing reportedly considers this division a strategic priority and is purportedly prepared to make a loss in 2019 to push the changes through.

Recently, the stock price of Deutsche Bank plunged to a record weak level due to the capital shortage. At that time, the management led by CEO Sewing vowed to slash expenses and begin an overhaul of the business.

Breaking the News / MA