Deutsche Bank, the largest German bank is considering lowering operations in the US market while the expenditure increasing by disputes threaten to erode the capital, say sources close to the situation cited by Bloomberg.
An analysis of The Wall Street Journal suggests that such withdrawal will be a radical one. The US negotiating Deutsche closing an investigation relating to irregularities in the sale of mortgages before the crisis and the German press wrote that the US authorities want the bank to reduce its activities there as part of any agreement. Compromise seems harsh in relation to the agreements with other banks. The Deutsche Bank US assets have shrunk dramatically in 2014 when they stood at over 400 billion dollars.
Now, these assets are estimated at about 260 billion dollars, according to Federal Reserve data. As reduced its operations, the bank lost market share in favor of rivals and dropped in the rankings in both investment banking and revenues from trading activities.
Counseling in acquisitions and raising capital through stocks and bonds, Deutsche was overtaken by Wells Fargo this year and fell to the ninth place in a top made by Dealogic. The income earned in the first half of these operations was of 635 million dollars or 15% of revenues reported by Deutsche investment banking businesses.
Revenues from sales of the financial securities are more important and in 2015 the US contributed 34% to global markets operations and investment banking. But Deutsche has already decided to focus on European customers who want access to the US marketplace to hunt American clients.