But when it came to making a decision, the bank’s stewards preferred more incremental steps -- until now. With a retreat that will see the lender exit its equities business and cut its 91,000-person work force by a fifth, Sewing is ending a trading foray that lasted for three decades and ultimately only led to losses. The plan “is a necessary and courageous step for Deutsche Bank,” said Michael Huenseler, a fund manager at Assenagon, which owns the bank’s stock. To be successful, “Sewing will need implementation discipline among the leadership, support from employees despite radical cuts, tailwind from the financial markets and clients and more than just a little bit of luck. None of this is certain.” Deutsche Bank shares dropped 1.7pc at 11:03 a.m. in Frankfurt, reversing early gains. Analysts said that while the restructuring was broader than expected, the newly announced targets will be tough to achieve. Goldman Sachs Group Inc.’s Jernej … [Read more...] about Deutsche Bank cuts job, plans radical surgery
Deutsche bank collapse
Deutsche Bank says to slash 18,000 jobs by 2022
Germany's biggest lender bank Deutsche Bank will slash around one in five of its workforce, an unprecedented round of departures for the bank FRANKFURT AM MAIN - Germany's biggest lender Deutsche Bank said Sunday it would cut 18,000 jobs by 2022, as the former leading light of the country's financial sector looks to escape years of turmoil.The slashing of around one in five of its workforce, to 74,000 employees, is an unprecedented round of departures for Deutsche.The bank said the layoffs would reduce annual costs by six billion euros ($6.7 billion) over the same period."Today we have announced the most fundamental transformation of Deutsche Bank in decades," chief executive Christian Sewing said, dubbing the scheme "a restart for Deutsche Bank".The lender did not immediately make clear where the axe would fall.But with executives looking to find synergies in the integration of subsidiary Postbank and central infrastructure roles, many jobs are likely to go in home … [Read more...] about Deutsche Bank says to slash 18,000 jobs by 2022
Deutsche Bank plans cuts in US equities, prime unit: sources
NEW YORK: Deutsche Bank is planning cuts at its U.S. equities business, including prime brokerage and equity derivatives, to win over shareholders unhappy about its performance, four sources familiar with the matter told Reuters.Chief Executive Officer Christian Sewing told shareholders at the bank's annual meeting on Thursday it was prepared to make "tough cutbacks" at its investment bank. Sewing is battling to convince them he can turn around Germany's biggest lender, whose shares have reached a record low.The bulk of the anticipated U.S. cuts will come from its money-losing equities business, which includes cash equities trading. Other areas of the business, including U.S. rates trading, have been earmarked for further reductions, they said.It is unclear how many of the bank's 9,275 U.S. employees will be affected and no final decisions have been made, the sources said.Deutsche Bank declined to comment.Sewing did not name which parts of the business will be cut or when the changes … [Read more...] about Deutsche Bank plans cuts in US equities, prime unit: sources
Investors renew calls for Deutsche Bank to trim investment bank
FRANKFURT: Deutsche Bank investors are renewing calls for it to scale back its investment bank division ahead of what promises to be a challenging annual shareholder meeting next week.The future of Deutsche Bank's investment banking operations has returned to the fore after the collapse of merger talks with smaller rival Commerzbank.One major investor is trying to extract a pledge from the bank for cuts to the unit before committing to back management in a symbolic vote of confidence at the meeting, a person with knowledge of the matter said on condition of anonymity.Another prominent investor, Union Investment, said changes in strategy were long overdue."Without cuts in investment banking, we believe it will not be possible to achieve targets on returns," said portfolio manager Alexandra Annecke, who is due to address the meeting.Deutsche Bank declined to comment.The division generates about half of Deutsche Bank's revenue but is also considered its Achilles heel, with European … [Read more...] about Investors renew calls for Deutsche Bank to trim investment bank
European regulators fear Deutsche Bank US stress test failure: source
FRANKFURT: Deutsche Bank is in danger of failing U.S. stress tests, a European bank supervisor told Reuters, adding to pressure on Germany's biggest lender to make changes to its investment bank after failed merger talks with Commerzbank.European Central Bank regulators are concerned that Deutsche Bank's standing has weakened since it flunked U.S. stress tests in 2015, 2016 and 2018 and a repeat would cause a bigger dent in confidence among customers and business partners.The Federal Reserve, which will complete its examination of Deutsche Bank's U.S. operations in the coming weeks, could also impose conditions curbing its Wall Street investment bank, further undermining its earning power, the official said.A spokesman said Deutsche Bank had "invested heavily to ensure that the bank meets regulators' demands and has made significant progress". The Federal Reserve, which is expected to announce the results by July, and the ECB declined to comment.While Deutsche Bank had made significant … [Read more...] about European regulators fear Deutsche Bank US stress test failure: source