THE LEX COLUMN: Deutsche Bank under the volcano
CEO Christian Sewing plans deep cuts amid threat of tougher Basel 4 capital requirements
Volcanic eruptions sound violent, but lava often flows slowly to wipe out everything in its path. Tougher Basel 4 capital requirements present this sort of threat.
Even so, Deutsche Bank executives are struggling to skip ahead of the hot hazard. CEO Christian Sewing aims to dodge the molten basalt, while coolly offering shareholders a plan for profit recovery. Those aims are hard to reconcile.