The German lender’s shares slid 5.4% in Frankfurt on Monday, wiping out early gains after announcing its plan Sunday.
The plan went into effect first thing Monday as employees around the world got notice that they were losing their jobs. In London, equities traders were told their badges would be disabled by 11 a.m. By 10 a.m., dozens were seen leaving the building near London Wall with thick white envelopes detailing their exit packages. Some were crying as they left. More than a few headed to the nearby Balls Brothers restaurant and bar and were seen quaffing prosecco and beer.
Such focus wasn’t on anyone’s mind 20 years ago when staff in Frankfurt were served hot dogs and American beer to celebrate the completion of the $9-billion purchase of Bankers Trust Corp. in the United States. That deal made Deutsche Bank the world’s largest financial services company. Today, it wouldn’t be the biggest in Belgium.
Hope that anything would change for the better on its own soon evaporated. When someone asked the global head of equities, Peter Selman, at a meeting of the investment bank’s executive committee for an estimate of when the unit would return to a profit, he first refused to give an answer and then suggested it certainly wouldn’t be before 2022, according to a person briefed on the matter.
They analyzed business by business to establish how profitable — or unprofitable — each one was, the people said. Identifying the associated costs of each unit was a key component of the review, including each one’s cost of funding and its share in the expenses for back-office staff — for example, for anti-money laundering and compliance — that can’t be strictly allocated to just one unit.
Initial reactions in Germany were favorable. The labor union ver.di -- a powerful voice thanks to its many seats on Deutsche Bank’s supervisory board -- said it “welcomes” the reduction of the investment bank, though it also said it will insist job cuts in Germany happen in a “socially compatible” way.
Wow, what does that mean for Trumps laundered money source?
that Deutsche Bank was caught laundering money for Russia and has been the go-to bank for mobsters and organized crime tells u everything. Now it wants to retract and retreat, pretending like nothings happened. no doubt to help cover tracks for some high-level politicians.
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Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »