Deutsche Bank to restructure U.S. operations: report
NEW YORK |
(Reuters) - Deutsche Bank (DBKGn.DE) is planning to restructure its U.S. operations to skirt financial regulations that could force it to raise billions of dollars, the Wall Street Journal reported on its website on Tuesday.
Deutsche Bank executives were concerned the bank would need nearly $20 billion to offset losses at its main U.S. unit, Taunus Corp, the Journal reported, citing an internal document at the bank.
The restructuring would see Taunus give up its bank-holding company status, the paper reported, citing unnamed sources.
Under the plan, Deutsche Bank Trust Corp, the banking unit, would be moved out of Taunus and become a direct subsidiary of the German lender, the paper said.
Deutsche Bank's investment-banking business and several other nonbanking entities would continue to reside in Taunus, the paper said.
Executives at the lender believe the plan will let Taunus avoid having to comply with the Dodd-Frank Act, the paper said.
The German lender presented its plan to the Federal Reserve last year, the paper reported.
Deutsche Bank was not immediately available for comment after-hours.
(Reporting by Paritosh Bansal; Editing by Steve Orlofsky)
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