Deutsche Bank Considers Forming ‘Bad Bank’

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Deutsche Bank Considers Forming ‘Bad Bank’
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Deutsche Bank is weighing a new unit for unwanted assets and businesses set for closure, should a possible merger with Commerzbank fall through

Deutsche Bank AG executives have discussed creating a new unit to house unwanted assets and businesses that could be earmarked for closure, part of contingency planning under way should a possible merger with German rival Commerzbank AG fall through, according to people familiar with the matter.

Deutsche Bank for years has been retooling its strategy and management, promising to reinvigorate profits, repair compliance weaknesses and cut rising costs. Executives insisted publicly up until late 2018 that the bank should only...

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