The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Deutsche Bank, headquartered in Frankfurt, changes hands at 75 per cent of tangible book value.
Deutsche Bank, headquartered in Frankfurt, changes hands at 75 per cent of tangible book value.
(Ralph Orlowski/REUTERS)

Subscribers only

Global banks keep unloading risky assets

The big banks can’t get rid of their riskiest assets fast enough.

Deutsche Bank is selling €16-billion ($21.6-billion) of risk-weighted assets stuffed in a credit portfolio, according to International Financing Review.

The sale is part of a €100-billion endeavour by the German bank to unload some of its riskiest assets and get capital levels up to snuff. Under Basel III, global banks must have tangible common equity that amounts to at least 7 per cent of their risk-weighted assets, and Deutsche was one of the worst capitalized banks at the height of the financial crisis.