Shares of the German Bank are down over 5% this morning after it announced a major restructuring overhaul Sunday, pulling out of its global equities and trading businesses and cutting 18,000 jobs by 2022.
Additionally, the restructuring will create a so-called "bad bank" for around €74 billion in under-performing assets
The overhaul, which will cost the bank €3 billion in second quarter charges, is expected to lead to a €2.8 billion loss over the three months ending in June, a suspension of the bank's regular dividend and a 40% reduction in the overall asset base of the business units targeted for change.
CEO Christian Sewing called the moves "the most fundamental transformation of Deutsche Bank in decades" and said it was a "restart" that would "benefit of our clients, employees, investors and society."
For more in-depth coverage of Deutsche Bank all day get over to Real Money where the details of the company's efforts will be outlined in detail, the impact of persistently low interest rates will be examined, and the potential ripple effects for the European banking system will be examined.