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ECB asks Deutsche Bank to gauge investment banking exit costs - source

Reuters  |  FRANKFURT 

(Reuters) - has been asked by supervisors to calculate the potential costs of winding down its operations, a source told on Sunday.

Germany's biggest lender has been calculating the financial effects of a potential move to quit for some time, and the move is not related to the switch in Deutsche Bank's top management position last Sunday when was appointed to replace

The point of the exercise is to estimate how the value of Deutsche Bank's capital market and derivatives business would develop if the was to exit abruptly from new business, the source said on condition he not be named because the matter is confidential.

said it "routinely" calculates the consequences of an orderly winding-down of positions in trading books for regulators. The ECB declined comment.

Germany's was first to report on Deutsche Bank's explorations induced by the ECB, saying other lenders are to face similar requests at a later stage.

is already in the middle of a global review of the investment bank, known internally as Project Colombo, to determine the way forward as revenues shrink and clients and staff leave.

(Reporting by Hans Seidenstuecker, additional reporting by Writing by Andreas Cremer, editing by and David Evans)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 16 2018. 14:38 IST