Deutsche Bank faces tough restructuring plans.

Running a global bank is a very complicated job but cutting it back is even harder. Deutsche Bank is facing an exhausting and long battle, to pare investment banking and sell Postbank; the new strategic goals have been revealed late on Friday. Although the bank will publish its results on Sunday, investors will not be given the chance to see the detail of its overhaul before the news conference on Monday. However analysts said that the scope of the challenge is pretty clear. The top bank of Germany is running late towards restructuring as their biggest rivals such as Credit Suisse and Barclays have already cut their global franchises many years ago, slashing jobs and shutting down businesses.

Deutsche Bank will most certainly have major problems in trying to sell Postbank without any losses. Deutsche Bank is planning on cutting its stakes to fewer than 50% during the next year from its current 94% by selling its shares on the stock market. The company’s second goal is to reduce its holding in the medium term to zero. But the battle is already starting to rage over the sale conditions for Postbank as the government of Germany is not going to allow any deal which includes huge layoffs at Postbank. A deputy SPD parliamentary floor leader and finance expert Carsten Schneider said that they are worried for the jobs at Postbank, as informed by Reuters. Many people in Germany say that Deutsche Bank has a political and social responsibility which in this case surpasses its economic interests. Postbank could be sold for around 3.6 billion Euros, say the analysts, but the Deutsche Bank has spent around 6.5 billion Euros purchasing it in early 2008. The Postbank is currently serving around 14 million clients.

An analyst Dirk Becker at brokerage Kepler said that the markets from which the bank withdraws and the amount of investment banking that will be cut will decide the future of the German giant. Deutsche Bank will need to pull out of high volume businesses and prime brokerages if it wants to stay afloat. Businesses where capital requirements are high and the margins are thin should be avoided, said Kepler. He also added that the bank needs to get out of every area where they are not making money, when it comes to investment banking.