Deutsche’s US business to duck new rules on capital

DEUTSCHE Bank is plotting a restructuring of its main US subsidiary to avoid having to comply with new capital rules.

In an invitation to its annual general meeting, the bank revealed plans to give up bank holding company status in its main US business, Taunus Corp.

The change would allow Taunus to comply with the Dodd-Frank financial reform law that Congress passed last year without having to embark upon what analysts have estimated would be a $20bn (£12.3bn) capital-raising.

At the end of last year, Taunus’ tier one leverage ratio stood at a negative 1.3 per cent, drastically below the four per cent ratio expected by the Federal Reserve.

While it is not illegal, the move is likely to draw criticism given how easily Deutsche could avoid new regulation on its US business. The issue will be put to a vote on 26 May.