Deutsche Bank CEO is 'sick and exhausted of bad news'

Deutsche Bank CEO is 'sick and exhausted of bad news'

Deutsche Bank CEO is 'sick and exhausted of bad news'

S&P in April placed Deutsche Bank on "credit watch" for a possible downgrade, saying a sudden change in chief executive could prolong the lender's restructuring.

"We see significant execution risks in the delivery of the updated strategy amid a continued unhelpful market backdrop, and we think that, relative to peers, Deutsche Bank will remain a negative outlier for some time", S&P said.

Deutsche's newly appointed chief executive Christian Sewing has tried to reassure investors that the bank is ready to do what it takes to return to profitability after years of losses.

Shares of Deutsche Bank are down more 7 percent on a report that Federal Reserve downgraded the German bank's USA business to "troubled condition" about a year ago.

It removed Deutsche from CreditWatch negative - effectively a warning for further downgrade in the future - and said the ratings outlook was now stable.

Under Sewing, Deutsche Bank is retreating from Wall Street and making cutting its workforce from just over 97,000 to below 90,000. The company's USA -listed shares are on track to close at their lowest level in almost two years.

The designation, which was made previous year and is one of the lowest possible, had not previously been made public and sent shares of the German bank tumbling on Thursday.

Deutsche Bank Aktiengesellschaft provides investment, financial, and related products and services to private individuals, corporate entities, and institutional clients worldwide.

Bloomberg News reports that the bank may retreat from "a couple of small business areas", Sewing said at a dinner the Frankfurt-based company hosted in Berlin on Wednesday evening.

And a source familiar with the ECB's thinking made it clear that Deutsche Bank had made "good progress" in its efforts to address regulatory concerns.

Deutsche Bank declined to comment on the WSJ report and on its relations with the Fed, but said it was working to remedy weaknesses in its US business identified by regulators, which it said did not affects its ability to serve clients. "We're not yet where we want to be, but we are steadily getting there".

The three US subsidiaries mentioned by the WSJ report - DB USA Corp, Deutsche Bank Trust Corporation, and Deutsche Bank Trust Company Americas - account for less than 10 percent of the overall balance sheet of Deutsche Bank Group, it said in a statement.

Chinese investor HNA Group Co Ltd [HNAIRC.UL], which controls an 8 percent stake in Deutsche Bank, said it supported the bank's management and its strategy. The bank's US operations also failed the Federal Reserve's stress tests multiple times throughout the past few years, and its new CEO recently announced it would be cutting thousands of jobs and scaling back its USA operations.

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