Possible short-term decrease followed by an increase in the shares of Deutsche Bank

The Bank restructured its business entirely.
From the management of Deutsche Bank announced it is planning a major restructuring of the management of assets. The bank plans to increase its capital to €8.5bln., which will happen on March 21. Raising new funds will be effected by issuing new shares.
At the same time the company will most likely find another € 2bln. after destroying the core assets of Deutsche Asset Management.
From here on follow hot 18 months for the company in which you have to pass through lawsuits with US and European authorities, thousands of cuts in many departments and replacing some of the directors in the company.
"Our solutions are a significant step towards creating a simpler and prosperous model of management in our bank. The capital increase will significantly enhance our financial stability," - said John Cryan, CEO of Deutsche Bank.
The aim is restructuring the business into four units after time expect another restructuring, and then expect the bank to work only three units.
The new structure will consist of Private & Commercial Bank, Deutsche Asset Management and Combined Corporate & Investment Bank.
The company also revealed ambitions to further integration of high technology to improve accountability and other overhead functions. The creditor is designed to reduce the adjusted cost base of 24.1bln. euros last year to 21bln euros by 2021.
Overall issuance of new securities reflects negatively on the share price. In this case for dramatically restructuring the bank's business in the long term will positively affect the company. From this perspective, we can conclude that the new issue of shares may lead to a correction in the price and give us a much better levels to buy the shares.

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