Deutsche Bank reportedly sells $50 billion worth of assets to Goldman Sachs as part of major overhaul
- Deutsche Bank has reportedly sold $50 billion worth of assets tied to emerging market debt to Goldman Sachs, according to a report from Bloomberg.
- The sale is part of a broader effort by the struggling German bank to offload business areas where it has struggled to compete, the report found.
- In early July, Deutsche began a major overhaul of its business including cutting as many as 18,000 jobs.
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Deutsche Bank has reportedly offloaded another business unit as part of CEO Christian Sewing's ongoing effort to restructure the struggling German lender.
According to a report from Bloomberg, Deutsche has sold around $50 billion worth of assets tied to emerging market debt to Goldman Sachs.The assets were held in the bank's wind-down unit, Bloomberg reported citing a person familiar with the matter. The wind-down unit is a key component of Sewing's plan to turn around the lender. Its purpose is to help Deutsche offload unwanted assets in an effort to free up capital.
This marks the second instance in several months that Goldman reportedly purchased assets from Deutsche. Goldman bought the Asian block of equity derivatives Deutsche auctioned off in September, Bloomberg found.
In early July, Deutsche began a major overhaul of its business including as many as 18,000 layoffs. The bank said it planned to exit stock sales and trading, and to build out a new "Corporate Bank" to service corporate and commercial customers.
The bank also transitioned its prime brokerage unit to French lender BNP Paribas in late September.
Goldman Sachs and Deutsche Bank declined to provide a comment for this story.