Goldman Cuts Deutsche Bank To 'Sell'

Deutsche Bank - External

Deutsche Bank was cut to sell from hold at Goldman Sachs, which said Europe’s biggest bank by assets may have to transfer $13bn to its U.S. unit under new capital rules.

Bloomberg reports that the stricter requirements may hurt Deutsche Bank’s profit and require it to racapitalize, Goldman Sachs analysts including Jernej Omahen said in an e-mailed report from London.

'Such an intragroup transfer would cause a sharp reduction in Deutsche Bank’s non-U.S. capitalization, which could increase pressure for an external recapitalization', the analysts said. 'The proposal is also stringent on funding, as it calls for a liquidity stress test. The impact on Deutsche Bank’s profit could be substantial'.

Deutsche Bank co-Chief Executive Officer Anshu Jain said in January he wants his firm to be 'very focused on the U.S.' because of its economic prospects and the presence the bank has built there.

Hit the link below to access the complete Bloomberg article:

Deutsche Bank Cut to Sell at Goldman on U.S. Capital

Goldman Sachs Tops M&A List as Berkshire-Heinz Signals Rebound

JPMorgan No. 1 Investment Bank Amid a Flurry of New Deals

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News