Deutsche Bank has been requested by European Central Bank supervisors to be able to calculate the potential expenses of winding all the way down its investment financial operations, a source explained to Reuters news agency with Sunday.
Germanys biggest mortgage lender has been calculating a financial effects of a potential move to quit choice banking business for a long time, and the move is just not related to the turn in Deutsche Banks top operations position last Thursday when retail financial expert Christian Curtains was appointed to exchange chief executive John Cryan.
The reason for the exercise is to help estimate how the value of Deutsche Banks capital market trading and derivatives business enterprise would develop in case the bank was to depart abruptly from start up business, the source said upon condition he cease named because the make any difference is confidential.
Deutsche Bank said it routinely calculates the results of an orderly winding-down of positions in trading books for government bodies. The ECB declined comment.
Germanys daily newspaper Sueddeutsche Zeitung was basically to report on Deutsche Banks explorations induced by the ECB, expressing other lenders are to face similar needs at a later stage.
Deutsche Bank is already down the middle of a global review of the investment bank, known inside as Project Colombo, to discover the way forward as profits shrink and shoppers and staff keep.