Bloomberg News reports that Co-Chief Executive Officer John Cryan decided to mark down the value of the securities unit because of rules that will force the company to hold more capital, Deutsche Bank said in a statement late Wednesday. Higher equity requirements have hurt profitability.
Cryan is preparing to shrink the trading empire built by his predecessor, Anshu Jain, to lower costs, lift capital levels and raise Deutsche Bank from its position as the worst-valued stock among global banks. That could mean giving up the aspiration to remain a top global investment bank and rolling back parts of the expansion it pursued over the last two-and-a-half decades.
'This perhaps is the beginning of the new chief executive taking a close look and saying, ‘actually, are we better off being the German champion bank, or do we want to maintain this ambition of being a global player?'' Robert Smithson, a fund manager at THS Partners, said in an interview on Bloomberg Television Thursday.
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