Deutsche Bank To Fire Up To 500 Amid Tumbling Trading Revenues

The drip-drip-drip death spiral of what was once the world's most systemically dangerous bank continues as Bloomberg reports Deutsche Bank has started cutting at least another 250 jobs at its corporate and investment bank units.

These new firings, which could widen to more than 500, according to Bloomberg's sources, comes after bonus payments that Chief Executive Officer John Cryan said were on the “generous” side, helped push the business in the red.

Cryan is trying to motivate and retain top investment banking staff, while keeping a lid on costs following three straight years of losses.

But with revenue at a seven-year low, even a relatively small increase in compensation can cause losses at the securities unit.

Chief Financial Officer James von Moltke has urged a return to more disciplined cost management after the lender scrapped a target for this year.

And these "generous" bonuses follow a 27% collapse in trading revenues and the disastrous debacle surrounding China's HNA liquidating its holdings of the giant German bank.

Imagine how "generous" these bonuses would have been if things were really bad?

As Michael Huenseler at Assenagon noted previously:

"The results are disappointing again and we don’t see anything encouraging in them, reinforcing our doubts in the bank’s strategy and management...There’s no silver lining."

Bloomberg notes that bank officials declined to comment.

For context, Deutsche Bank’s corporate and investment bank employed 17,251 front office full-time staff at the end of last year.

While Deutsche's share price continues to languish, the last week or so has seen a more concerning re-ignition of short-term counterparty risks as Deutsch Bank's 1Y Sub CDS spreads have blown out...

Or does someone know something about a short-vol position that DB may be holding?

And even more worrying for the bank itself is the total decoupling of short-term default risk from Germany's systemic risk...

In other words - you're on your own Mr. Cryan.


Laowei Gweilo Haus-Targaryen Mon, 02/19/2018 - 12:18 Permalink

fire 500 and hire millennials? =p

i'd normally say it would be to take the hit on severance packages to get rid of tenure-linked benefits...

but they seem to be offering pretty stupid benefits to try attract more millenials lol 

so maybe this is structural employment related?

no offense but it's a real thing i've heard HR discuss where they lament not enough software proficiency with the olders guys o.0 i mean, the millennials are stupid as fuck when it comes to experience... but a lot of people really value a strong IT proficiency these days and a lot of finance guys graduating these days have enough soft IT experience they'd they probably qualify for comp sci minors o.0

In reply to by Haus-Targaryen

zebra77a Laowei Gweilo Mon, 02/19/2018 - 12:36 Permalink

Oct 10, 2016

"Either Deutsche Bank goes bankrupt, which is going bring down the entire world financial system, or they are going to come up to some kind of compromise at a lower number."…


Something is up. 250 layed off is NOT the story you are looking for.  CDS rates are spiking while Chinese are getting out for a reason.. Trump can be blamed for the World Depression for failing a multi-trillion bailout that was planned by Central Banks all along, them fully knowing it all had to be reset.

This brings one more wait what? question in regards to the Feb 6th super-spike of Vix on no news.

In reply to by Laowei Gweilo

ErikE Sonny Brakes Mon, 02/19/2018 - 12:08 Permalink

These big houses will be trying to cover their behinds in the coming months.  The market volatility is coming back with a strong vengeance according to what Shepwave analysts have been covering since January.  they have been dead on.   I think they are expecting another bit of a whip saw move in stocks this week.  I will post on here when they give targets. 

check their blog for Tuesday's open in US 

In reply to by Sonny Brakes

blindfaith Mon, 02/19/2018 - 11:40 Permalink

Fucking  bastards helped destroy the American dream...Home ownership, and with the help of the FED and Obama.


Die as bad and expensive death as possible and take the 1% with you.

blindfaith Mon, 02/19/2018 - 11:42 Permalink

  May be Islam can help, there are lots of them in Germany now.

Folks...REMEMBER this whore of a bank can walk up to the FED window and borrow what ever it needs.  Just keep that in mind.

hedgeless_horseman blindfaith Mon, 02/19/2018 - 11:55 Permalink


Folks...REMEMBER this whore of a bank can walk up to the FED window and borrow what ever it needs.

Must watch video of Congressman Alan Grayson questioning Federal Reserve Chairman Ben Bernanke on $550 billion of loans to foreign banks...

Grayson: "Which Foreigners Got the Fed's $500,000,000,000?" 

Bernanke: "I Don't Know."

In reply to by blindfaith

zebra77a hedgeless_horseman Mon, 02/19/2018 - 13:13 Permalink

Unless it's time to fold it.  And Blame Trump.  That was the question all along - what dominoes were being positioned before it was all shutdown. 

It will be a forced bail in. No questions there at all.

Only grace is - an international collapse is impossible to stage without it leaking out in chunks and pieces for those who are scrutinizing.. This might be the throw off itself.

In reply to by hedgeless_horseman

Hkan Mon, 02/19/2018 - 11:56 Permalink

Mr Cryan inverted position.

The worse he perform the earlier and more costly to get rid of him.

Mr Cryan is a winner...or a winner...