Deutsche Bank Explored Wells Fargo Custody Deal Before Fed Snub
- Bank said to have explored potential U.S. deal late last year
- Deutsche Bank’s Sewing dealt setback over control concerns
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Deutsche Bank AG chief Christian Sewing has signaled he’s ready to move past years of turnaround efforts and consider deals to grow the bank. He’ll probably have to look outside the U.S., since the Federal Reserve views its progress as far from done.
Senior executives at the German lender indicated their interest in buying Wells Fargo & Co.’s custody unit to Fed officials late last year, according to people familiar with the matter. The Fed was opposed to the purchase because Deutsche Bank hadn’t made enough progress in improving controls and compliance, despite being under confidential agreements with the central bank to fix the issues, the people said, asking not to be identified as the talks weren’t public.