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Now is the time for Deutsche Bank to consider a split

The universal banking model is hard to sustain in the face of the post-crisis regulatory onslaught

Now is the time for Deutsche Bank to consider a split

It’s long well past time for Deutsche Bank’s long-suffering shareholders to challenge the holy writ of universal banking.

The bank's strategic challenges were made clear in late January when its fourth-quarter results showed return on equity of 2.6%, about 20% of its cost of equity capital. Management said the performance was "encouraging" - but the equity market continues to value the bank's shares at only half book value.

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