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Deustche Bank Fails to Become Pure Investment Bank After ECB Stress Test

Deutsche-Bank-Frankfurt-am-MainDeutsche Bank has dropped its plan to become a pure investment bank and corporate lender after stress tests imposed by the European Central Bank found that the new model would not survive a severe financial crisis, according to Reuters.

Though the bank’s co-chief executives were initially optimistic about the push, they have since changed their views, both because of the stress test results and numerous demands by trade unions and other political interests in Berlin, Reuters said. As such, the bank will now sell only its Postbank DPPBGn.DE retail arm, “cutting investment bank assets and investing more in equities trading and wealth management.”

“A lot of our caution—when we think of our future—stems from what we think the future shape of regulation situation will look like,” Ansu Jain, one of the co-chief executives, told reporters.