Money briefs: Deutsche Bank may trim US operations

Deutsche Bank may trim US operations

FRANKFURT • Deutsche Bank, Germany's biggest bank, is exploring shrinking its United States operations as mounting legal expenses threaten to eat into its capital, sources said.

Such an option is being considered as part of the bank's broader strategy review, which evaluates businesses in the context of regulatory and capital  requirements, they said.

Deutsche Bank said last month that the US Justice Department requested US$14 billion (S$19.4 billion) to settle a probe tied to residential mortgage-backed securities, a figure that triggered a sell-off in the shares and fuelled investor concerns about the bank's financial strength. The bank had put aside €5.5 billion (S$8.4 billion) for litigation at the end of June.

Chief executive officer John Cryan has said he doesn't plan to raise capital and expects the US authorities to lower their initial demand.

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CIMB, China Galaxy in stockbroking talks

KUALA LUMPUR • CIMB Group Holdings, Malaysia's second-biggest lender, and China Galaxy Securities have started talks to form a joint venture in the stockbroking business to tap into capital-market deals in China.

The companies are negotiating a 50-50 partnership to cover institutional and retail broking, equity research and associated securities businesses, and aim to conclude a definitive agreement within three months, CIMB said in a filing yesterday yesterday.

CIMB is facing slowing economic growth in Malaysia and has embarked on a cost-cutting programme after years of rapid expansion and acquisitions. It shed about 10 per cent of jobs across Asia last year.

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A version of this article appeared in the print edition of The Straits Times on October 18, 2016, with the headline 'Money Briefs'. Print Edition | Subscribe