The Purge Begins: Deutsche Bank Fires 400 US Bankers

As part of its latest disastrous earnings, which saw trading revenues tumble by 17% as new CEO Christian Sewing took over, we reported that Deutsche Bank announced a sweeping restructuring plan, abandoning its long-running ambitions to be a top global securities firm, scaling back U.S. rates sales and trading, reducing the corporate finance business in the U.S. and Asia, and reviewing its global equities business with a view toward cutting it back, the bank said in a statement. The measures will lead to a “significant reduction” in the 97,130-person workforce this year, Deutsche Bank said. We translated it more simply: massive layoffs.

Predictably, the German bank wasted no time, and according to Reuters and Bloomberg, the purge began overnight when Deutsche fired 300 U.S.-based investment bankers on Wednesday with another 100 pink slips expected over the next 24 hours.

In total, the biggest German bank plans to cut more than 1,000 jobs, or over 10%, of total US jobs in its initial restructuring phase. According to Bloomberg, the US hosts about 10,300 Deutsche Bank employees, or about a tenth of the firm’s global workforce.

In his earnings call comments, CEO Sewing stopped short of disclosing how many of the bank's 97,103 jobs would be let go...

... while CFO James von Moltke also gave few clues as to how much of its massive 1.4 trillion euro ($1.7 trillion) balance sheet would be shed in the process. Von Moltke estimated restructuring costs for 2018 would rise to 800 million euros, up from an earlier estimate of 500 million euros, according to Bloomberg.

“These cutbacks will be painful, but they are unfortunately unavoidable if we want to be sustainably profitable in the best interests of our bank, our clients and our investors," Sewing said.

As noted earlier, the bank plans to reduce its activities across the board in the U.S. including rates sales and trading and corporate finance. Areas where the investment bank still believes it can grow globally include foreign exchange, commercial real estate and structured equity financing, Garth Ritchie, head of the investment bank, said in a memo to clients obtained by Bloomberg.

Comments

Harry Lightning Alexander De Large Thu, 04/26/2018 - 13:44 Permalink

The hypocrites get around that little aspect of their religion by issuing Sharia-compliant Sukuk bonds. Such a joke, they discount the amount of the loan face value they pay out, and the borrower then pays back the face value of the note which is greater than the loan proceeds. That's a capital gain in their books, to everyone else its bullshit accounting. 

The best banks are the Polish banks...you give them a toaster and they deposit a thousand dollars in your checking account. 

In reply to by Alexander De Large

any_mouse WillyGroper Fri, 04/27/2018 - 00:42 Permalink

Can anyone be sure what Muslim clerics actually say to their flock?

You think the Jew Media would tell the goyim the truth?

They love Linda Sarfour to rile up the goyim.

Al Qaeda, ISIS/L aka Daesh, are CIA/Mossad entities.

Who benefits most from complete chaos in Syria?

Audit the FED? A private, foreign owned corporation that creates US Public Debt and collects the interest.

Sure, Muslims are the enemies of mankind.

In reply to by WillyGroper

Karl Marxist WillyGroper Thu, 04/26/2018 - 18:00 Permalink

Hey, Flunkie, I hear your camel calling your name to go hump it. Aside from that, where would we be without usury? After all, the mindset of all banks is that no one really owns anything and you need to pay them for the privilege of financing that horrible looking car or overpriced house and that useless college education. Don't get me started on "insurance" of any kind.

In reply to by WillyGroper

WillyGroper Karl Marxist Fri, 04/27/2018 - 08:12 Permalink

" I hear your camel calling your name to go hump it. "

says a lot about you.  is this how you reconcile  destroying the cradle of civilization, looting, murder, organ harvesting & radioactive weaponry?  sounds like you're good with that.

" After all, the mindset of all banks is that no one really owns anything

again, your brilliance is blinding.  you're conflating banksters with the papal bull.

 

no hope for morons like you.

In reply to by Karl Marxist

any_mouse Robert Trip Fri, 04/27/2018 - 00:55 Permalink

The Jew Fuhrer with his Jew henchmen and his beard lover. The Third Reich officer corps was predominately Jewish.

Hitler led the genocide of racial German manhood.

Dunkirk, Stalingrad, and Kursk. Hitler ordered (in)actions that prolonged the deaths and the war.

Mutti is doing her part for the same agenda, the death of racial Germans.

In reply to by Robert Trip