Deutsche Bank is in full retreat from Wall Street.
The troubled German bank says it will cutback its US operations, including trading and corporate finance operations globally as it focuses on its home market. The announcement came after the bank reported yet another quarterly losses tied to reduction in trading profits.
New CEO Christian Sewing — which I pointed out here and here led an investigation into the multiple executive suicides from a decade ago — said headcount will see a “significant reduction” in the 97,130-person workforce.Deutsche Bank has never been able to regain its reputation after the 2008 financial crisis, since the institutional corruption that ruled the firm prior to the meltdown.
The German bank has paid global regulators tens of billions dollars in fines and penalties for Libor rigging, mortgage manipulation and other financial crimes perpetrated during former CEOs Josef Ackermann and Ashu Jain tenure.
The reputational hit on the bank with other Wall Street banks was too much for ex-CEO John Cryan to overcome. Sewing seeing this situation as untenable decide to pullback much of his operation back to Europe and focus on its retail banking operations.