'We Have A Problem' - Deutsche Bank Shutters Houston Office

Just a week after 'the purge' began, Deutsche Bank is closing its office in Houston as part of a strategy to pare its U.S. operations, according to an internal memo seen by Bloomberg.

As part of Deutsche's drastic restructuring, we noted previously, the purge began last week 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.

And now, as Bloomberg reports, the bank will now shutter its Houston office, which has over 50 staff...

“We will continue to serve our Oil and Gas clients through our debt and corporate banking treasury products,” Mark Fedorcik, co-head of the U.S. investment bank, said in the memo to staff.

“We remain committed to the U.S. Power and Utilities sector which will be re-aligned under the Industrials coverage vertical in New York.”

A spokeswoman for the company confirmed the contents of the memo.

Bloomberg notes that it wasn’t immediately clear how many jobs would be cut, and how many would be relocated to other offices.

Comments

hannah Linus2011 Fri, 05/04/2018 - 13:30 Permalink

this is actually bad for usa taxpayers because the 'bad' loans that douche bank were giving out to the oil and gas industry in the us will now have to be covered by usa banks. that means more exposure to us taxpayers when the next round of bailouts comes.....

In reply to by Linus2011

bowie28 Fri, 05/04/2018 - 10:15 Permalink

Maybe need to reduce exposure to Trump's US regulators before the derivative bomb goes off and the sharks start eating each other again?  Don't want to be the next Lehman or Bear Sterns...

CheapBastard Fri, 05/04/2018 - 10:17 Permalink

Most companies with any sense are exiting (far-left, high crime, high homeless) Harries County (Houston) and moving out to Sugarland, The Woodlands or Katy.

Downtown is turning into a Ghost City with vacancies soaring despite landlords offing massive discounts on commercial lease renewals.

buzzsaw99 Fri, 05/04/2018 - 10:19 Permalink

This is an outrage! I demand an investigation! You can't sell our seats! A Duke has been sitting on this exchange since it was FOUNDED!  [/mortimer]

Now, you listen to me! I want trading reopened right now. Get those brokers back in here! Turn those machines back on!    [/mortimer]

arby63 Fri, 05/04/2018 - 10:21 Permalink

Modern-day banking is one ginormous scam of epic proportions. We've allowed them to hold all the cards and create a new game no one even understands (until it's too late).

 

overmedicatedu… Fri, 05/04/2018 - 10:23 Permalink

strategic retreat ..ja the reichsmarks will be held at the Rhine. Berlin must be protected at all cost..herr merkel will not allow further retreats..russia watch's and waits..as Trump rolls up the reichsmarks ..the EU is in panic retreat.

JailBanksters Fri, 05/04/2018 - 10:26 Permalink

You can't just stop playing Musical Chairs, especially when your a major player.

And your the Rothschild's favorite crime syndicate.

Und dere vill be consequences !

Anyone for a nice game of Derivatives ?