ECB has provoke b requested for the bank to calculate how much it will cost to wind down its investment banking
Deutsche Bank has been looking into the pecuniary implications of quitting investment banking for some time and the bank’s chief monetary officer suggested Deutsche is the first in the queue for the ECB.
The point of the exercise is to estimate how the value of Deutsche Bank’s head market and derivatives business would develop if the bank was to exit abruptly from new establishment, the source said on condition he not be named because the matter is confidential.
Deutsche Bank express in a statement “We regularly estimate for regulators the capital, liquidity and cost consequences of an uniform wind down of the positions of trading books. This is common assiduity practice.”
James von Motlke, chief financial officer at Deutsche Bank said: “We mull over we are first in the queue here because we are the largest capital markets bank in the ECB’s supervision.”
Mr von Moltke explained that this put in for from the ECB was “not an unusual exercise” and that it was “totally unrelated” to an internal go over again of its global investment bank.
The ECB has declined to comment.
But Deutsche Bank commanded it “routinely” calculates the consequences of an orderly winding-down of positions in trading books for regulators.
Deutsche Bank has not bewitched a huge hit from this news as its shares currently stand at €11.62, a decrease by 0.72 percent.
The bank is already in the midst of an internal global go over again called Project Colombo which will set out the way forward as the challenges of net income decreasing and staff leaving persists.
And the move is not related to the switch in Deutsche Bank’s top governance position last Sunday when retail banking expert Christian Fastening was appointed to replace chief executive John Cryan.