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Deutsche Bank to create €50 billion 'bad bank': FT

Barbara Kollmeyer

Deutsche Bank AG plans to create a so-called "bad bank" to hold up to €50 billion ($56 billion) of poorly performing assets as part of plans for an extensive restructuring, the Financial Times reported Sunday. The bank also plans to shrink or close its stock and interest rate trading operations outside of continental Europe, the FT said, citing four persons with knowledge of the plan. Chief Executive Christian Sewing is expected to announce the plans when the bank released half-year results in July. Sources told the newspaper that the total number for the non-performing assets continues to shift around, from 30 billion to 50 billion, and could make up 14% of the bank's balance sheet. "Deutsche Bank is working on measures to accelerate its transformation so as to improve its sustainable profitability. We will update all stakeholders if and when required," the bank told the FT in a statement.