Major shake-up at troubled Deutsche Bank
http://www.dw.com/en/major-shake-up-at-troubled-deutsche-bank/a-18791529
Just ten days after warning of huge upcoming losses, Germany's largest lender, Deutsche Bank, has announced major organizational changes. What's obvious right away is that investment banking is to take a hit.
Major shake-up at troubled Deutsche Bank
Andreas Becker
19.10.2015
After write-downs translating into an estimated loss of 6.2 billion euros ($7 billion) in the third quarter, John Cryan, Deutsche's new co-head, is zeroing in on the bank's structure.
"We want to create a bank that's better controlled, more cost-efficient and more strongly focused," he said after an extraordinary meeting of the board of directors in Frankfurt last weekend.
Details of the plan will only be announced on October 29, but the general direction is already clear after Sunday's board meeting. The investment banking division ("Corporate Banking & Securities"
will be split into two, and several key executives will have to leave.
"It seems that the trading part will be spun off or put into a different part of their organization, separate from corporate banking", Jan Pieter Krahnen, professor and head of the Center for Financial Studies at Frankfurt's Goethe University, told DW. Krahnen interprets this as a sign that Deutsche Bank was now "swinging into the approach taken by the European regulator. That approach means creating more resilient and stronger financial institutions."