A lot will depend on the success of Deutsche Bank’s restructuring plan
month, following the collapse of merger talks with Commerzbank in April, Deutsche Bank’s share price hit the lowest point of its 149-year history. Fitch, a credit-rating agency, cut the bank’s rating to two notches above junk. In May Christian Sewing, its chief executive, promised “tough cutbacks” in the ailing investment-banking business, with plans to be laid out alongside half-year results on July 24th. But on June 16th a leak in theThe cuts go well beyond its investment-banking arm.
Moreover, they are harder without profits. The firm cannot take big upfront losses. “Deutsche Bank cannot afford radical change,” says Daniele Brupbacher at, a Swiss bank . Under Germany’s strong labour laws, slashing headcount would mean stiff social-insurance payments. Offloading dud assets is expensive, too. Deutsche’s post-crisis bad bank made losses of €14bn.
The retrenchment marks a definitive end to Deutsche’s aspirations to become Europe’s Goldman Sachs. Now it would settle for being a German version ofParibas, a French universal bank with most of its activities in Europe. As well as a slimmed-down corporate and investment bank, Deutsche will still have Germany’s biggest retail bank and, a solidly performing asset manager.
A lot will depend on how fast Mr Sewing can put his proposals into action. The leak is likely to force him to come clean about the details earlier than he had planned. They will probably include yet another purge of senior managers. According to the, a daily, he might start by firing Garth Ritchie, the boss of Deutsche’s investment-banking unit. In the new cost-conscious era Mr Sewing could take over—and run the sickliest division of an ailing bank.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Tyler Perry Tells BET Awards Audience To Create Their Own Opportunities: “Own Your Stuff!”In one of the most impactful speeches at Sunday night’s BET Awards, Tyler Perry talked about creating opportunities and taking control of his own destiny. The writer, producer, director was h…
Consulte Mais informação »
Germany's Metro says $6.6 billion bid undervalues companyMetro said that an unsolicited offer by two prominent investors to take over the...
Consulte Mais informação »
Germany's Merkel urges political solution in Iran crisisThe international community must seek a political solution on Iran, German Chanc...
Consulte Mais informação »
Daimler to recall 60,000 Mercedes diesels in Germany over emissionsDaimler must recall 60,000 Mercedes diesel cars in Germany after regulators foun...
Consulte Mais informação »