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Report: Shareholders want Deutsche Bank to ditch US business

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Report: Shareholders want Deutsche Bank to ditch US business

Shareholders at Deutsche Bank AG are calling on the German lender to ditch or significantly reduce its U.S. investment banking business, saying the bank's recently unveiled turnaround plan is not enough to return to profitability, Financial News reported June 11.

A top 10 shareholder reportedly told the newspaper that the U.S. business "hasn't delivered for a long time and now something far-reaching has to be done." A speech by CEO Christian Sewing suggested that the level of reductions would be less than expected, the report said.

Under the restructuring plan, Deutsche Bank will cut roughly 7,000 full-time jobs, which will entail reducing the headcount of its equities sales and trading business by around 25%. The bank will also reduce its U.S. and Asian activities.

Deutsche Bank's share price has reportedly fallen about 40% since the beginning of 2018 and investors are getting impatient. A former equities head at the bank told Financial News that the U.S. equities team should just become electronic and the U.S. research team must be "radically slimmed down."

However, CFO James von Moltke told a Goldman Sachs conference that the turnaround plan "should generate the best possible return profile for our shareholders."