BNP Paribas SA agreed to absorb the global prime finance and electronic equities client portfolio of Deutsche Bank AG, subject to regulatory approval.
The transfer, one of several actions under Deutsche's sweeping restructuring drive, would include the migration of technology and key staff covering the business. The German banking group will continue controlling the platform until clients can be migrated to the Paris-based lender.
The Financial Times previously reported that Deutsche could shift up to 800 staff, mostly from London and New York, under the deal.
Although the banks did not disclose any financial details of the binding agreement, a deal is said to involve the transfer of tens of billions of euros of client assets. BNP would reportedly pay a nominal amount and Deutsche Bank would not have to pay redundancy to staff who move.
Both lenders had envisioned that a large number of Deutsche's hedge fund clients would switch over their balances, which amount to nearly $200 billion, to BNP, but some had opted to transfer to rivals such as instead, the FT noted.
Deutsche COO Frank Kuhnke said the bank is "on the right track" to set the transfer into motion. Just days before the deal was announced, the bank sold several portfolios of equity derivatives in the first series of auctions under its overhaul plan.
