Deutsche Bank has reportedly divested around $51bn in assets to Goldman Sachs as part of its ongoing restructuring process.
The German firm sold ‘unwanted’ securities that were held in its wind-down unit, Bloomberg reported citing sources familiar with the development.
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At the end of 2019 Q3, the wind-down unit held €177bn ($195bn) in leverage exposure- a risk measure. Deutsche Bank aims to reduce it to €119bn by the end of this year.
However the contribution of the latest sale to this goal is not clear.
This is the second deal between the two companies after Deutsche Bank announced sweeping restructuring plans in July this year.
In September, Goldman Sachs acquired Deutsche Bank’s Asian equity derivatives portfolio.
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By GlobalDataBarclays and Morgan Stanley also purchased certain portions of the portfolio, sources told Bloomberg. In a separate deal, BNP Paribas agreed to buy the German bank’s hedge fund business.
The latest deal is expected to strengthen Deutsche Bank’s capital buffers by selling stressed assets. On the other hand, Goldman Sachs seeks to expand its market share with the acquisition.
Deutsche Bank and Goldman Sachs officials did not confirm the deal.
This July, Deutsche Bank announced a series of measures to overhaul its businesses and revive its market value.
The overall programme involved axing thousands of jobs, and exiting or scaling down certain businesses. The bank also announced its withdrawal from the equities sales & trading business.
