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Deutsche Bank Weighs Forming a Holding Company

Steven Arons, Eyk Henning
Deutsche Bank Weighs Forming a Holding Company 

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. 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. “Non-operating banking holding companies provide for strategic flexibility,” and can help banks satisfy regulators on their ability to be wound down if needed, said Jan-Alexander Huber, a partner and banking expert at Bain & Co.