Deutsche Bank reverses, turns higher premarket

• Down as much as 8% last night following news of €5.8B in impairment charges to be taken in Q3, Deutsche Bank (NYSE:DB) is now up 0.8% in premarket action.
• Last night's news has all the signs of a new CEO clearing the decks for the way forward, but - as IP Banking Research points out on Seeking Alpha - much of the writedown won't have a significant impact on the bank's capital ratios (goodwill and intangibles usually don't figure in these).
• If Postbank is sold for below book value, this would be hit to capital, but should Deutsche sell its stake in Hua Xia Bank, it would likely be a benefit.
• Cutting the dividend, says IP, is the right thing to do given the big moves John Cryan is making at the lender. Most importantly, this probably means another dilutive capital raise won't happen.
• IP: "I am immensely impressed by the swiftness, decisiveness and quality of execution by the new CEO. Clearly, this is not about tinkering around the edges, this is a complete reset for the organization."
• Previously: New Deutsche CEO kitchen-sinking Q3; bank to cut or eliminate dividend (Oct. 7)