yYAXssKCQaUWZcXZ79RJTBLvo-c;SfREtjZ9NYeQnnVMC-CsZ9qN6L0 Finance, Economics, Globus, Brokers, Banks, Collateral-Oriano Mattei: DEUTSCHE BANK....... Deutsche Bank is working on a public listing of its asset management division to rebuild its capital buffers, once it has reached an expected settlement with the US Department of Justice for alleged mis-selling of mortgage-backed securities. Germany’s biggest bank has not made a final decision about the potential float of a minority stake in its asset management unit and any such offering is unlikely before the first half of next year, according to several people briefed on the situation.

video

Loading...

venerdì 7 ottobre 2016

DEUTSCHE BANK....... Deutsche Bank is working on a public listing of its asset management division to rebuild its capital buffers, once it has reached an expected settlement with the US Department of Justice for alleged mis-selling of mortgage-backed securities. Germany’s biggest bank has not made a final decision about the potential float of a minority stake in its asset management unit and any such offering is unlikely before the first half of next year, according to several people briefed on the situation.

         

Deutsche Bank is working on a public listing of its asset management division to rebuild its capital buffers, once it has reached an expected settlement with the US Department of Justice for alleged mis-selling of mortgage-backed securities. 

Germany’s biggest bank has not made a final decision about the potential float of a minority stake in its asset management unit and any such offering is unlikely before the first half of next year, according to several people briefed on the situation.
The move is one of several options being examined by Deutsche as it scrambles to agree a multi-billion settlement with the DoJ for selling vast amounts of the residential mortgage-backed securities that turned out to be toxic and sparked the 2008 financial crisis.
John Cryan, who became sole chief executive of Deutsche last year, is expected to meet the DoJ in Washington on Friday, according to one person. Mr Cryan is in the US capital along with many of the world’s top financial industry executives for the IMF and World Bank annual meetings and the person said a deal was unlikely to be struck during his visit to the DoJ.

Deutsche declined to comment on Mr Cryan’s movements or on the idea of floating its best-performing division in recent years, which has €719bn of assets under management and is reckoned to be worth about €8bn by analysts. 
The bank has endured a tough few days after news of the DoJ’s $14bn settlement request prompted investor fears that the bank could be forced into raising capital or even require a government rescue. Deutsche has insisted that neither is on its agenda and that it has no intention of settling for anywhere near $14bn. 
Speculation about a potential sale of all or part of the asset management division prompted Mr Cryan to last month issue a statement to staff rebuffing the idea.
Urging his staff not to be distracted by rumours of disposals, he said: “There is one rumour in particular that I would like to dispel by making it unambiguously clear that Deutsche Asset Management is and will remain an essential part of our business model.”
However, the public listing of a minority stake in the asset management unit would allow Deutsche to keep management control while raising €2bn to €3bn of capital that would reduce the size of a potential rights issue.
Hedge funds have pushed the bank to consider selling the division. One person familiar with the bank’s strategy said: “They have to do something with the asset management business and selling a minority stake makes most sense.” 
The main drawback of the plan is that it would reduce the amount of profit from the business that Deutsche would earn in future. The unit generated an after-tax return on tangible equity of 28.5 per cent in the first half of the year.
As Deutsche worked on ways to boost its capital, European officials continued to rally round the bruised lender. Germany’s deputy chancellor, Sigmar Gabriel, said in Berlin that it was “completely clear” that it was in Germany’s interest to have a stable and successful Deutsche Bank.
Meanwhile, Jeroen Dijsselbloem, chairman of the eurozone finance ministers, said in an interview with Reuters that the DoJ’s $14bn demand was “really counterproductive to put it mildly”.
Copyright The Financial Times Limited 2016. All rights reserved. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.
da "ft.com"

Nessun commento: