Deutsche Bank AG has sold several portfolios of equity derivatives to some of its global peers in the first series of auctions under its overhaul plan, which will see the German lender withdraw from equities trading, insiders told Bloomberg News.
A spokesman for the Frankfurt, Germany-based lender confirmed to Bloomberg that the assets were sold to three different bidders without naming them. Sources said the assets were divided depending on their locations, with Barclays PLC buying the European equities derivatives, Goldman Sachs Group Inc. the Asian portfolio and Morgan Stanley the U.S. assets.
The portfolios reportedly include so-called flow equity derivatives, while the succeeding auctions would comprise exotic derivatives and are expected to be much more difficult.
The exit from equities trading is a key element of Deutsche Bank's much-talked-about turnaround plan since the business consistently struggled in recent years. Most of the bank's assets held under its stocks trading division had also been transferred to a capital release unit, or bad bank, where they would be wound down, the report noted.
France's BNP Paribas SA is also among the bidders for a chunk of Deutsche Bank's equity derivatives activities, which would see the transfer of the prime brokerage unit, including assets and staff. The banks have reached a preliminary deal but it is yet to be finalized, Bloomberg added.
