Deutsche Bank has offloaded $50bn in unwanted assets as part of CEO Christian Sewing's ongoing effort to restructure the struggling German lender, Reuters reports.
Chief executive Christian Sewing in July announced plans to shed about €282bn in non-core assets in a move that would shrink its balance sheet by a fifth.
To conduct the transaction, Deutsche is using a capital release unit — a bad bank — to unwind $195bn in leverage exposure to poor-performing securities. The firm aims to reduce leverage exposure by almost 50% by the end of this year.
This marks the second instance in several months that Goldman reportedly purchased assets from Deutsche. Goldman bought the Asian block of equity derivatives Deutsche auctioned off in September, Bloomberg found.
Goldman purchased the debt at a discount and believes it can make a modest profit on the deal. The book likely includes derivatives, as well as emerging-market debt, acording to sources.
In early July, Deutsche began a major overhaul of its business including as many as 18,000 layoffs. The bank said it planned to exit stock sales and trading, and to build out a new "Corporate Bank" to service corporate and commercial customers.
Deutsche Bank and Goldman Sachs declined to comment on the transaction, which was first reported by Bloomberg.