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Deutsche Bank Is Playing for Time

Lionel Laurent
Deutsche Bank Is Playing for Time

The early release of some of Deutsche Bank AG's quarterly results last week was a hint that analysts had become too gloomy about the battered lender's fortunes. CEO Christian Sewing's strategy of playing for time – cutting costs while protecting the business's core trading units – may make sense in the short term. Expectations for Deutsche Bank's earnings have been crushed over the past six months as the messy appointment of a new CEO, a less-than-radical strategic plan and a credit-rating downgrade pointed to a future of managed decline.