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Firm to reduce U.S. rates, plans to cut back global equities
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Marks retreat from years of trying to compete with Wall Street
Deutsche Bank AG is abandoning its ambitions to be a top global securities firm as it embarks on possibly the most sweeping overhaul yet of its struggling investment bank.
Germany’s largest lender will scale back U.S. rates sales and trading, reduce the corporate finance business in the U.S. and Asia, and review its global equities business with a view toward cutting it back, the bank said in a statement Thursday. The measures will lead to a “significant reduction” in the roughly 97,100-person workforce this year, it said.
The future of the investment bank had been a key factor in the tumultuous management shakeup that saw Christian Sewing take over as chief executive officer this month. A Deutsche Bank veteran who started as an apprentice, Sewing is accelerating a push to refocus the lender on its European home market and reverse a two-decade effort to compete head-to-head with the large Wall Street firms that dominate volatile securities trading.
“We have to act decisively and to adjust our strategy,” Sewing said in the statement. “There is no time to lose as the current returns for our shareholders are not acceptable.” He didn’t provide figures.
Deutsche Bank posts a 79% drop in 1st Q profits – expect heavy job cuts in investment banking and trading under new CEO Christian Sewing – balance sheet will be shrunk especially in US – business will be grown for private and consumer business – #risk.
Deutsche Bank posts a 79% drop in 1st Q profits – expect heavy job cuts in investment banking and trading under new CEO Christian Sewing – balance sheet will be shrunk especially in US – business will be grown for private and consumer business – #risk.
— David Buik (@truemagic68) April 26, 2018
UFS