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Behold The European Recovery: Deutsche Bank To Fire 25% Of All Workers
Deutsche Bank has witnessed an exodus of executives this year in what’s been a tough stretch for the German lender. Here’s a brief recap of the bank’s recent trials and travails for those who need a refresher:
The bank, which has paid out more than $9 billion over the past three years alone to settle legacy litigation, has become something of a poster child for corrupt corporate culture.
In April, Deutsche settled rate rigging charges with the DoJ for $2.5 billion (or about $25,474 per employee) and subsequently paid $55 million to the SEC (an agency that’s been run by former Deutsche Bank employees and their close associates for years) in connection with allegations it deliberately mismarked its crisis-era LSS book to the tune of at least $5 billion.
But it was out of the frying pan and into the fire so to speak, because early last month, the DoJ announced it would seek to extract a fresh round of MBS-related settlements from banks that knowingly packaged and sold shoddy CDOs in the lead up to the crisis. JP Morgan, Bank of America, and Citi settled MBS probes when the DoJ was operating under the incomparable (and we mean that in a derisive way) Eric Holder but now, emboldened by her pyrrhic victory over Wall Street’s FX manipulators, new Attorney General Loretta Lynch is set to go after Barclays PLC, Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings PLC, Royal Bank of Scotland Group PLC,UBS AG and Wells Fargo & Co.
As for the employee exodus:
Co-CEOs Anshu Jain and Jürgen Fitschen were shown the door (well, technically they resigned, but with shareholder support plummeting amid skepticism about both financial targets and ongoing legal problems, it’s easy to read between the lines) in June after which the bank’s global head commercial real estate Jonathan Pollack defected to BlackStone. Pollack's departure came just one month after the bank's head of structured finance Elad Shraga left to start his own fund. Shraga was instrumental in helping Deutsche become "an award-winning arranger of asset- and mortgage-backed debt." Shraga had been with Deutsche Bank for 15 years.
Well now - and this follows similar cuts across Wall Street and underscores the extent to which Mario Draghi hasn't succeeded in printing the EMU back to economic prosperity - quite a few more employees will be departing, only this time, the departures will be ... how should we put this ... oh yes, “mandatory.” Here’s Reuters:
Deutsche Bank (DBKGn.DE) aims to cut roughly 23,000 jobs, or about one quarter of total staff, through layoffs mainly in technology activities and by spinning off its PostBank (DPBGn.DE) division, financial sources said on Monday.
That would bring the group's workforce down to around 75,000 full-time positions under a reorganization being finalised by new Chief Executive John Cryan, who took control of Germany's biggest bank in July with the promise to cut costs.
Cryan presented preliminary details of the plan to members of the supervisory board at the weekend.
A spokesman for the bank declined comment.
The bank is primarily reviewing cuts in the parts of its technology and so-called back office operations that process transactions and work orders for client-facing staff. A significant number of the some 20,000 positions in that area will be reviewed for possible cuts, a financial source said.
Whether or not the move will do anything to appease impatient shareholders (the same shareholders who ultimately forced out Jain and Fitschen for foot-dragging on efforts to boost profitability) or, more importantly, to improve the bank's utterly corrupt corporate culture remains to be seen but we can't say we're optimistic.
The cuts, it should be noted, aren't unexpected. As Cryan noted after taking the helm, "the investment bank’s securities and derivatives trading businesses can’t continue to soak up capital. We cannot afford that luxury. Reducing this reliance should not place us at a competitive disadvantage as the market has anyway already moved in that direction." Fair enough. We just hope there are still some competent people around to manage this:
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"Useless eaters" - Ayn Rand
what do you call 23K unemployed bankers?
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.
.
.
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a good start.
All replaced by a APP
I still have a hard time figureing out why banks still have to many emoployees. Everything is done online.
Nope, to be replaced with fresh Syrian immigrants at minimum wage!
Green Shoots! On people's graves.
Heilig Scheiße !!
Yeah, and bankers as fertilizer.......
Islamic Banks operate under Islamic Sharia rules and do not charge interest to their customers.
Um, yes, they don't charge an arm and a leg like Western banks, but they can be aggressive enough so that, when you're around them, you have to be careful not to lose your head.
You do pay a 'fee' and that fee tends to be a lump sum......
utter bullsh1t. you do pay interest, but its just another name.
Loophole.
once there's only ONE bank then you may not have to worry about any issues with respect to your funds going missing do to a database mismatch error...pretty common when two banks merge. i'm not aware of any APP able to resolve such a thing; it usually takes a good old-fashioned human being.
but it's good to know that the highest paid f-tards will be able to get a job elsewhere - or at least retire in comfort. it's the peons that are f'd. great world we live in. progress!
This is only the begining! All western Banks are dead!
german engineering: https://www.youtube.com/watch?v=BuQ6HQGjH9E
jewish engineering: https://www.youtube.com/watch?v=E4LuOvUcP-4
This would have happened closer to the Lehman timeframe had the Banksters been allowed to fail. Deuschbank has been dead bank walking since that time.
Worse than Japanese banks
PostBank spin off huh?
Interesting.
Deutschland unter alles.
Deutsche Bank is a jewish controlled Rothschild Bank! It has nothing to do with Germany. Satans Bankers will close all this Banks, they have got the Gold and they do not need this banks anymore.
Awesome!
OK.. DeutschBank unter alles.
Are we all absolutely positive that the bankers are controlling everything and writing their own rules so they never lose? I mean, I'm just asking.
Not judging by what Nomi Prins was saying following her meetings with The Fed a month or so back.
Or by Timmay writing in his book that Mario's "We will do whatever it takes" was basically an off-the-cuff remark.
Or by The Fed's "We will raise rates in April...June...September...".
Or by Benny boy's "Rates will not normalise in my lifetime".
Etc, etc.
DavidC
Douche Bank finally got a good hosing...
The little rats are getting hosed, no tears there. The big rats are living comfortably elsewhere.
Bankers? Awesome!!
RAUS!!!
fuck 'em
....all !
is dat a puff of smoke I see ova dare? Ah, its just a smoldering pile of derivatives, for a second you had me worried.
25% reduction in workforce for all firms around the world...................is what's comming
Welcome to Mad Max
The only thing I'm lacking is the dingo. Everything else I've already got.
Dingo... reminds me of a joke.
How do you castrate a hillbilly?
Smack his sister in the back of the head.
I've always told that as "how do you circumsize a redneck" but i like yours better.
sister, uncle, whatever
always good for a laugh:
https://www.youtube.com/watch?v=uDDJvC2CGaU
nope i dont have any jewish candy
already happened in europe and the US. im seeing a wave of european kids over here to china, mostly beijing and shanghai but even in random ass second tier cities you are starting to see a lot of spanish, italian, portugeuse, and irish (the pigs oh my!) moving over to teach english because they cant find any work back home.
Actually closer to 70% reductions will be coming. Soon all middle managment will be slashed and left with executives and those that build the widgets. It'll make census tabulation quicker as you'll only be an executive (not poor) or non-executive (poor).
Its a start
They can join the million terrorist refugees in a war against their employers.
dont worry half of them already have jobs lined up in various regulatory agencies.
..or they can join the military and clean up after thier masters
Has Pope Francis met with Deutsche recently?
Should have happened in 2008. Next up Bank of America.
Betting on Barclays before BofA...
All time favorite quote re: Douche Bank:
Judge Arthur M. Schack of Kings County, New York in Deutsche Bank Nat. Trust Co. v Harris (Feb. 5, 2008 - Index No. 39192/2007)
For a minute there I thought I was about to shed a tear but it turned out to be pollen.
That sure reduces the risk of Deutsche Bank's exposure to $64 trillion in derivatives which can blow up at any time
Robot recovery! Steel shoots! Silicon seeds!
3 ways to become a frustrated investor https://www.youtube.com/watch?v=e6fZYR8_j5I
it would be funny if someone pulled a "mr. toomey" on the way out the door.
So give us your report, Craig.
Tell us how much money
you made for us.
You wanna know
how much money I made for you?
You wanna know
how much money I made for you?
- Yes.
- I'll tell you how much money
I made for you.
- I didn't make any...
ROGER: No, Craig.
TOOMY:
Shut up. Shut up. Shut up!
ROGER: Tell them you lost the money
but it was a mistake, an accident.
TOOMY:
No.
I didn't make any money for you.
I didn't make any money for you.
I lost money for you.
I lost money for you!
I lost forty three million dollars.
And I did it deliberately.
I did it deliberately!
I did it deliberately!
[LAUGHING]
global debt, short-term sugar high wearing off gonna be a bitch
So they can bet more into casino derivatives.
I don't know what word makes me more sick to my stomach every time I hear it in Mainstream media...
"Liftoff" or "Recovery"
I especially love it when they use the terms (Ah but for the Null Set of Cognitive Dissonance) in the very same sentence, like: "Looks like we're finally set for lift-off into our 8th year of recovery."
I shit you not.
It's absolutely amazing to point stuff like that out to other people and they stop, look perplexed and try to rationalize the propaganda. Wake the fuck up!
When they start firing IT, things will get "interesting", bank on it.
"through layoffs mainly in technology activities and by spinning off its PostBank..." since PostBank has less than 1400 employees, that's a helluva lot of people in "technology activities", ten times more than work at CERN, lulz.
So that's why CERN's making black holes! The depopulation and unemployment gambits! Kill three birds with one stone! Excess staff and lower costs, depopulation and lower the unemployment rate as people disappear.
Damn, they're good!
Logan's Run
https://www.youtube.com/watch?v=LSUAAKFLoL0
A pretty good indication of what is to come of Europe... Then the rest of the world... Then the US... so US layoffs will put the US numbers back on the shite list... not that the TRUE current numbers aren't shite, but the FED is data dependent...LOL.. so what will that mean for future rate hikes? You probably get the gist of it. Going to make an already difficult balancing act for the FED even more difficult. Errrr... let's just call it what it is... The impossible even more impossible.
To all of you who can't resist the urge to post what you seem to think are clever comments... F OFF and resist the urge to post.
You post that, then ask us not to make clever comments?
As requested: Oh poor Fed, having to make tough decisions on the economy and lives they've ruined. Bo effen Ho.
Economic Collapse: Not possible, until it is, possible.
Got Silver?
Nice recovery
Everything will slowly collapse, then suddenly it will have already collapsed.
Have they already bought everything they can or do they have all the customers they can possibly serve? Why else would you fire quarter of your employees if everything is going fine?
It's a Eurotrash Socialist thing, lowering standards of living is great untill it's your standard they want to lower. Employees are parasites of profits, as far as they are concerned. I'll bet those newly unemployed bankers will no longer be using DB.
To: Fired Deutsche Worker..
Management and Staff would like to thank you for your years of faithful service. You may think we are unfaithful for letting you go ...but our cookie was crumbling and we needed to clean up the mess. Unfortunately you were one of the crumbs. As a reminder of your service we are pleased to announce that you will not only receive one of our coveted coffee cups but also our newest gift..a douche-bag. Your contribution was significant but unfortunately your butt was working at the wrong desk during this right sizing situation. If we ever get out of our legal problems and figure out how to make some money...we will contact you. If you have any emotional or mental health problems...please use your severance package to buy a ticket to Greece...I understand that they have some timely counseling classes on "losing it all". Once again..please keep in touch as we weather this storm together.
Sincerely,
(unable to sign my name as my human resources job has also been eliminated)
Well done!
PS. The elevator to the roof will now be accessible via executive card key only.
There are some public buildings down the block with accessible roofs for your jumping pleasure.
So their is no European crisis ? Yeah ?
They must take these actions. They've only just begun. Ultimately they'll fire more than 90% of their employees. They have to. Why?
Because the top executives are planning to move operations to Patagonia, Chile to be away from the nuclear war the USSA is planning to start between Russia and EU/GB. Can't move more than a couple thousand at most. The rest must go... literally.
That's banksters for you.
Just one more sign the top dogs are starting to eat their own, in earnst!
It will get really nasty as we get closer to the big blow up.
1oz Silver American Eagle €12 @ EurGold
https://www.eurgold.eu/silver/silver-coins/american-eagle-1oz-silver-coi...
Pleae fuck off with your annoying ads.
1 fist through your € face....priceless....NOW FUCK OFF
Gonna be big bonuses at DB this year!! They are probably getting rid of the people who actually work for a living so the elitist bankers can benefit.
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And in the end, we were all just humans.. drunk on the idea that love, only love, could heal our brokenness.
<a href='http://www.bestquotes4ever.com/authors/f-scott-fitzgerald-quotes' target='_blank'>F. Scott Fitzgerald</a>
So senior management is asleep at the wheel while traders break laws and loan officers make dumb laws. So Deutche's board of directors snorted some crack and asked themselves: "should we fire more senior management, or traders, or loan officers?"
Nah, fire the technology guys that know how to turn the ATMs on. That will restore profitability faster.
Not to mention, who know where all the back doors are. Firing ONE IT guy can cause you endless grief if it's the wrong one. Firing 25% of your staff virtually guarantees that you'll fire somebody who can hurt you very badly, and will.
Gee?!!!...
Now who saw this coming???.... On top of how many thousands that have been let go by this same bank in the last 5 years ensuring that their clients service "will only get better"!
One can only hope that the last ones out the door will be the Quants in the data storage facility that have managed to keep the Algos rising ever higher with periodic interruptions on the power button when it falls below "Squawk Box" expectations!!!
"then Petroleo Brasileiro SA sold 100-year bonds in June, the move was largely seen as a sign the corruption-tainted oil producer had put the worst of its problems behind it."
fidelity here in us has a big position in these bonds...how about dem deutsche banksters all in no doubt.
Deutche bank is leaving Russia.
Who paid for this article?
"Cui bono".
Bad german bank, "let's not say russian ppl are getting fired"
Jump, you bastards!
yeah cut technology jobs. you know the ones that have the intellectual capacity to save you big money in the cost of transactions by using.....technology. these fools still think technology is a cost center and can be pounded to appease shareholders. those companies that are investing heavily in technology see the bigger picture and will pull ahead of the pack of those who are only looking at the next quarterly statement.
It was either the technology folks or the dealmakers.
Dealmakers in modern bankstering can never be fired.
I was thinking roughly the same thing. We've read how the main reason Greece couldn't exit the Euro was that resetting all the interbank and credit card clearing software was virtually impossible. That bank IT systems are cobbled together on top of legacies stretching back to COBOL. But DB thinks it can cut IT people? A LOT of IT people? Who's going to clean up the systems the next time an unexpected trade confuses the algos? Who's going to keep the next Windows release from crashing the entire company? Who's going to keep the Chinese hackers from waltzing into accounts management and shifting a billion or so of other people's money into their own accounts?
Cutting an IT department by 25% is rather steep. Here's hoping the executives responsible learn it the hardest way possible.
If these bankers and their financial engineering were not adding to Germany's productive capacity then their unemployment should have no effect on GDP.
All sounds civilised.. no-one taking flyng lessons off buildings, zero nailgun action - I'm dissapointed DB... very dissapointed
Let it sink in for a minute - 64 trillion dollars' exposure. I mean, bloody hell.
What the fuck do any of them do in the first place? Workfare for the good slaves, unemployment for the rest.
And so it begins. We have had 3 national banks in America's history. The first 2 were burned to the ground. Good to see our German brothers have begun to cleanse their soil of these bloodsuckers who "take care of other people's money." Though this won't mean a thing when the new 800,000 Syrian refugees arrive in Germany and then realize that there are little to no jobs thanks to a contracting economy of debt spending. Meanwhile the loyal citizens of Germany are retiring and the replacement rate cannot replenish fast enough to continue to pay for social programs such as Government pensions.
Socialism kills as per usual, whether it be the immediate purging of a forced dictatorship, the slower starvation of masses due to corrupt centralized control of private business, or the slow destruction of individual responsibility and the nuclear family which led to the most brilliant men and women.
Poor Germany easily one of the greatest countries to have ever been created with some of the greatest people, soon it will be Absurdistan.