•Current equity value of DB looks too low versus equity valuations of large French banks by many measures
•DB reflects market concerns about their derivatives book, dependence on wholesale funding, capital issues, and low ROE, however French banks have have the same issues
•Most importantly, both DB and large French banks share the same problem of a business model not supportable in the current evironment
Trade: Buy DB at 13.40 in Euros, and sell equally weighted Soc Gen and BNP
ive headwinds to increasing ROE of having a business model that is not supportable in the current regulatory and economic environment