DB Focuses on
Banking
In a previous
issue we told you of the merger of Deutsche Bank and America's
Bankers Trust, creating the world's largest bank. Deutsche Bank is
now branching out even more, creating a new subsidiary called DB
Investor, which will account for approximately 45% of Deutsche Bank's
value.
What is important
about this move is that it could signal a plan by the company to sell
that part of the organization, a sale which could yield $38 billion.
Previously, the bank has been reluctant to sell, due to German tax
laws that would eat up a majority of the profits, but, the new
subsidiary is outside of Frankfurt. The release of this non-financial
portfolio of business may indicate a move by the organization to
focus more on banking.
Should American
banks be concerned?
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