STOCK MARKET WATCH - Thursday, 22 March 2012

[FarCenter]

51. Deutsche Maneuvers Around New Law

April 13, 2011

Since January 2010, a group of more than 15 senior Deutsche executives in the U.S. has been holding weekly meetings to discuss what to do about Taunus, said people familiar with the matter. The internal documents show they estimated that Taunus could need up to $19.9 billion in new capital to adhere to U.S. capital standards.

Deutsche weighed options to address the problem, according to the documents. It considered shifting assets or business lines into a new Cayman Islands subsidiary, which wouldn't face tough capital requirements.

Ultimately, Deutsche decided to move its banking unit, known as Deutsche Bank Trust Corp., out of Taunus, said the people familiar with the matter. That unit, which Deutsche got via its 1998 purchase of Bankers Trust, will become a direct subsidiary of the German parent company and still will be able to operate as a bank in the U.S.

With the banking business gone, Taunus plans to deregister as a bank-holding company, allowing it to bypass Dodd-Frank's tougher capital rules, these people said. Deutsche's shareholders must approve the plans.

After the change, Taunus will continue to house the investment-banking arm, known as Deutsche Bank Securities Inc., as well as a variety of other nonbanking entities.

http://online.wsj.com/article/SB10001424052748704336504576259123197655768.html
Deutsche Bank in the US is really mainly the old Bankers Trust Company.