Deutsche’s weekend at Bernie’s moment

Deutsche Bank’s key executives including chief John Cryan are meeting over this weekend to figure out how the German bank will survive.

When Cryan was named sole CEO this year, due to a scandal taking out Jürgen Fitschen, he initiated a five-year turnaround plan, which has proven ineffectual.

The bank was rumored to be looking to merge with fellow German bank CommerzBank earlier this week, but that plan has been said to be nixed by Cryan.

As I wrote this week this is the worst time for markets September and October, well now you have a long-rumored troubled bank — Deutsche — meeting to try to find an avenue to recovery.

Everything is on the table including selling large parts of the bank in order to keep the doors open. Cryan has been firing thousands of bankers over the last year trying to implement his initial recovery plan to no avail.

DB’s crown jewel is its asset management business, which the bank desperately needs to retain in order to keep the doors open, since it’s the largest division that also provides the bank with its much-needed liquidity. However the troubled bank may need to shed that business to stave off collapse even if it will only work in the short-term.

The bank will only have until Sunday afternoon to come up with a plan for the markets, since Asian markets will be opening. The US will have to wait until Monday night futures to react to the news.

September weekend bank meetings are back. The 2008 versions of these meetings often lead to harrowing results of forced mergers and bank closings.

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