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Deutsche Bank Tops DAX As €50 Billion 'Bad Bank' Report Snaps Losing Streak

Martin Baccardax

surged to the top of the German market Monday, helping financial sector shares pace gains around the region, following multiple reports that the troubled lender is ready to create a "bad bank" to house underperforming assets. The bad bank plan, first reported by the Financial Times, would form part of a broader overhaul for Deutsche Bank that would see it pull back from equity and fixed income trading outside of Europe as it moves to slim costs, reduce risk and return to profitability. The so-called "bad bank" portion of the plan, according to multiple media reports, would be designed to hive off around €50 billion worth of assets, mostly longer-date derivatives, from the lender's main business.