Posted inDACH

Deutsche Bank in asset management spin-off rumours

The news follows an expected multi-billion dollar settlement with the US Department of Justice (DoJ) for alleged mis-selling of mortgage-backed securities in 2008, it said.

While the FT said Deutsche Bank has not yet arrived at a final decision over a potential flotation of a minority stake in the asset management business, with no action likely until next year, Deutsche Bank chief executive John Cryan issued a statement last month (September) to employees urging them to ignore market noise.

He said: “Despite all our challenges, I personally have a different impression of our bank than that painted by some observers. I can assure you that my management board colleagues and I will do everything we can to show you and the public that we can look to the future with confidence.

“Do not allow yourself to become distracted by speculation about alleged mergers or sales plans. There is one rumour in particular that I would like to dispel by making it unambiguously clear that Deutsche Asset Management is and will remain an essential part of our business model.

“We have enough on our plate to solve on our own, and we intend to concentrate on this for now. We want to resolve further important litigation cases, and we are now approaching the finish line in our second and third round of negotiations with employee representatives in Germany.”

The FT said Cryan was in Washington this week along with other global financial executives for the International Monetary Fund and World Bank annual meetings, adding he was expected to meet with the DoJ during his visit.

Deutsche Asset Management has approximately €719bn under management.

Deutsche Bank declined to comment further.

Part of the Bonhill Group.