World Economy

Deutsche Bank Under Pressure

Deutsche Bank Under PressureDeutsche Bank Under Pressure

Deutsche Bank AG, under pressure to bolster its balance sheet before resolving a US mortgage probe, is working to securitize billions of dollars of corporate loans to offload risk, according to a person with knowledge of the matter, Bloomberg reported. The bank is structuring the transaction as a synthetic collateralized loan obligation, which means the firm would keep servicing loans while transferring risk to investors, said the person, who demanded anonymity. Germany’s biggest bank has been doing similar deals for years to manage risks from corporate lending, the person said. US authorities demanded $14 billion during initial talks to settle a probe into how it handled mortgage securities at the heart of the 2008 financial crisis.