Behind Deutsche Bank's $8.3 billion revamp
It was the long-expected end of an era for Deutsche Bank, as it announced Sunday it will pull out of its global equities sales and trading business, cut its dividend and slash risk-weighted assets by about 40% in some parts of the business, as part of a restructuring plan to save billions.
Our thought bubble as Axios' Felix Salmon points out: The "restructuring will cost 18,000 jobs and $8.3 billion, which is a lot of money for a bank valued at just $16.6 billion at close of trade on Friday."
- The German bank also expects to report a net loss of $3.14 billion in the second quarter.
- It will release its second quarter earnings on July 25.
What happened: Deutsche's struggles in equities and investment banking are not new. The company's stock tumbled during the financial crisis, after peaking at more than $145 a share in May 2007, and has never recovered.
- The stock began mounting what looked like a rebound in July 2015, but in 2016 the company was hit with billions in fines from the U.S. Justice Department and lost all of that momentum. The stock closed at $8.03 Friday.