Deutsche Bank and Zurich Financial Services are in talks for Deutsche to buy Zurich's fund management operations, but those in the UK operation will remain with Zurich.

The deal currently under discussion would see Deutsche beefing up its US fund management operations, which are relatively small, with Zurich's business, which has been problematic. Deutsche's cash outlay could be reduced by transferring Deutscher Herold and other of its European insurance subsidiaries to Zurich.