Deutsche Bank is planning to reduce its securitization business, and perhaps its mortgage business altogether

From Reuters:

Deutsche Bank is looking to cut its loan securitization business further starting with repackaged U.S. mortgages, two people familiar with the matter said, as the lender braces for a large fine in the United States for alleged mis-selling of such debt.

A final decision about this core business is set to come early next year, the people said, and securitization cutbacks could become a central part of an expected strategic overhaul at the bank, once U.S. authorities have settled on a penalty.

“We have already shrunk the business over the last two to three years,” a person with direct knowledge of the bank’s plans said. “It could shrink a lot more. Not only sales and trading, but also in origination.”

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2 responses to “Deutsche Bank is planning to reduce its securitization business, and perhaps its mortgage business altogether

  1. Reblogged this on Deadly Clear and commented:
    Awww… too bad. Bye bye.

  2. Is Deutsche Bank also going to get out of shadow banking, credit default swaps and derivatives? There are many different tables at which to gamble in the Great Side Bet Casino.

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