Bloomberg News reports that Chancellor Angela Merkel’s government views favorably a structural overhaul that may include shrinking the U.S. operations and sees reducing the investment banking business as a viable way to curb risk and capital requirements, said the officials, who asked not to be identified discussing the private deliberations. A German Finance Ministry spokesman declined to comment. Pulling back in the U.S. is one option being considered as part of Deutsche Bank’s broader strategy review, said two others familiar with the lender’s plans.
"Since the outbreak of the financial crisis, the goal of our regulation has been to reduce the risks on the balance sheets of banks,” Antje Tillmann, a senior lawmaker on the German parliament’s finance committee for Merkel’s Christian Democratic Union, said in an e-mail to Bloomberg. “Measures that support this goal, but don’t harm the export-oriented German economy, should be openly discussed."
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