Deutsche Bank Weighs Forming a Holding Company

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Deutsche Bank AG is weighing a move to split its core businesses under a holding company, a measure that would make it easier to break up in a crisis and more agile in potential mergers, according to people with knowledge of the discussions, Bloomberg News reported. The bank has been encouraged by regulators to adopt the structure, which could create three largely independent core divisions overseen by common management, the people said, asking not to be identified as the deliberations are private. Deutsche Bank’s investment bank is still struggling to compete with peers, while its retail division is unable to make a substantial profit in an overbanked market because of its bloated workforce. Chief Executive Officer Christian Sewing announced the bank’s fourth restructuring in three years in April, mostly focused on cuts to the investment bank, though he has yet to convince investors of its merits; the stock is down almost 40 percent this year. Read more.