Deutsche Bank draws activist investment from former JPMorgan CFO

New York-based activist hedge fund Hudson Executive Capital LP has taken a stake in Deutsche Bank, the German lender said on Thursday. Photo: (AP Photo/Michael Probst, File)

New York-based activist hedge fund Hudson Executive Capital LP has taken a stake in Deutsche Bank, the German lender said on Thursday. Photo: (AP Photo/Michael Probst, File)

Published Nov 1, 2018

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INTERNATIONAL - New York-based activist hedge fund Hudson Executive Capital LP has taken a stake in Deutsche Bank, the German lender said on Thursday.

The Wall Street Journal first reported the investment by Hudson, which is led by former JPMorgan Chase finance chief Douglas Braunstein. It said the stake was 3.1 percent.

The investment is a rare piece of good news for shareholders of Germany’s largest lender.

After three years of losses, a failed stress test in the United States, several attempts to restructure, a leadership shake-up and a ratings downgrade, many investors have lost faith in Germany’s biggest bank, whose shares have fallen by 45 percent this year.

Deutsche Bank’s Chief Executive Christian Sewing said in a statement that he welcomed the investment.

“Doug Braunstein and Hudson Executive come with deep backgrounds investing in financial services companies,” he said. “We appreciate Hudson Executive’s confidence in our ability to execute on our strategic objectives.”

The fund was not immediately available for comment outside of business hours.

REUTERS

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