Deutsche Bank to set up 50 billion euro bad bank in revamp

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Deutsche Bank is planning to overhaul its trading operations by creating a so-called bad bank to hold tens of billions of euros of non-core assets

FRANKFURT - , a source close to the matter said on Monday.

The measures are part of a significant restructuring of the investment bank, a major source of revenue for Germany’s largest lender, which has struggled to generate sustainable profits since the 2008 financial crisis. Deutsche said in an emailed statement in response to the FT report that it was “working on measures to accelerate its transformation so as to improve its sustainable profitability. We will update all stakeholders if and when required”.

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