Home » Money

Deutsche Bank fired 300 US-based investment bankers on Wednesday

27 April, 2018, 01:19 | Author: Sara Gill
  • Deutsche Bank unveils major investment bank shake-up plans and workforce cuts as it focuses on Europe

Deutsche Bank has released its financial report for the first quarter of 2018, according to which the bank has lost upwards of 80% of its net profit over the previous year (120 million euros, versus 575 million in 2017).

Revenue at Deutsche Bank in the first quarter of 2018 fell by 5% year on year to EUR7 billion, mainly because of reduced trading in shares, borrowing and currencies.

As part of the changes, Deutsche Bank put Garth Ritchie, previously co-head of the investment bank, in charge of that entire division, and named a new chief operating officer from the retail-banking division.

"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 in a statement.

Germany's largest lender will scale back USA rates sales and trading, reduce the corporate finance business in the US and Asia, and review its global equities business with a view toward cutting it back, the bank said in a statement Thursday.

Deutsche Bank will be scaling back operations in bond sales and equities trading, particularly in the USA and Asia. "There is no time to lose as the current returns for our shareholders are not acceptable".

The fact that startups with about 200 employees have reached multi-billion dollar valuations and beat out major banks such as Deutsche Bank in profitability demonstrate a healthy long-term development of the cryptocurrency market.

Christian Sewing, the new CEO of Deutsche Bank expressed that he believes they are on the right track regarding private and commercial banking but they need to boost their profits substantially.

In the first quarter of 2018 Deutsche Bank booked profits of EUR120 million, compared to EUR575 million in the same quarter of 2017.

Deutsche Bank will take another step back from its decades-long global expansion, announcing Thursday that it will focus its investment banking business more on Europe and reduce operations in the USA and Asia.

The company didn't provide numbers showing how deep the cuts to the investment bank will be.

The bank also stated that additional cost cutting measures will be implemented, including job cuts but no specifications were given. HSBC downgraded shares of Deutsche Bank from a "buy" rating to a "hold" rating in a research report on Monday, January 8th.

Group pre-tax profit was 432 million euros, down 51 percent year-on-year. The lender had begun to retreat from some businesses under Cryan, who, in the year 2015, said that he would close operations in 10 countries, cut 10 percent of jobs, and decrease the number of investment bank clients by around half.

Today's announcements may determine the bank's credit rating, which influences its financing costs. "The end of its global investment banking ambitions with cuts in the US and Asia is welcome".



Donald Trump Praised Kanye West For His 'Good Taste' on 'Fox & Friends'
Of course she did, and in typically thoughtful and hilarious fashion. "Everyone keeps asking me to comment on s-". Whatever he has in store of next is bound to epic, and who knows; maybe SZN 7 will be more "affordable".

New lead in death of Palestinian engineer
Police said security video showed that the suspects had waited for him for nearly 20 minutes. Intelligence officials in the Middle East suspect that Dr.

Central Intelligence Agency chief Mike Pompeo confirmed as USA secretary of state
In all six Democrats voted to confirm Pompeo to be the next secretary of state, in addition to Independent Senator Angus King. Here are four things to know about the State Department, which Pompeo is inheriting in disarray.

Meek Mill Has Been Released From Prison
Ordering Mill out on bail, the state's Supreme Court cited "credibility issues" over a police officer who was a witness. He was also asked to ring the ceremonial Liberty Bell before the game's tipoff.

Ford minimizing auto lineup in the United States
The automaker says it made $1.74 billion, or 43 cents per share, compared with $1.59 billion, or 40 cents per share a year ago. Now the Dearborn company is more aggressively phasing out its passenger cars as it focuses on trucks and electric vehicles.

Court Rules in Favor of Photographer as "Monkey Selfie" Saga Ends
Both judges were critical of PETA and its decision to settle the case after oral arguments suggested it would lose the appeal. People for the Ethical Treatment of Animals ( Peta ) had argued that the monkey was the legal owner of all photos he took.

Sky reconsiders Fox offer after Comcast bid
United States cable TV giant Comcast has made a formal £22bn bid for Sky that values the UK broadcaster at £12.50 a share. It also owns movie studio Universal Pictures, home to "Minions" and "Jason Bourne" movies and some theme parks.

Bob Dorough (1923 - 2018), "Schoolhouse Rock" musician
DOROUGH served as the Music Director of a 40th anniversary DVD edition of the entire, five-subject series. The artist's songs helped educate children on the long-running ABC cartoon series.

Controversial Indian guru Asaram Bapu sentenced to life for rape
His followers were held for threatening and assaulting witnesses in rape cases against him and his son after they were arrested. This was just hours after the court had found them guilty of raping a teenager from Uttar Pradesh at Asaram's ashram.

Disguised woman kills husband's mistress before turning gun on herself: Cops
She loved her family fiercely, was a compassionate friend and among the most talented and innovative professionals in her field. Authorities say the killings stemmed from an affair that Mark Gerardot , 49, had been having with Chapman, Philly.com reported.