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Deutsche Bank AG is considering extensive cuts to its cash equities business in the U.S. as part of a wider restructuring of its investment bank division, according to people familiar with the matter.
A decision could come as early as this week and may be communicated as part of a larger package of changes to the German lender’s securities unit, said the people, asking not to be identified because the details are confidential. No final decision has been made, according to the people.
A spokeswoman for Deutsche Bank declined to comment.
Cash equities, or the trading of regular stocks, has traditionally been a core business of investment banks, but regulation and technology have made it less profitable for banks. A retreat in that business in the U.S., where Deutsche Bank has struggled to compete with the large Wall Street firms, would mark the first strategic decision for new Chief Executive Officer Christian Sewing, who took over from John Cryan earlier this month. In a first memo to staff, Sewing took a tough line on the bank’s stubbornly-high costs and said the bank will pull back from areas where it’s “not sufficiently profitable.”
The cash equities business has suffered from a transition to automated trading and passive investing, both of which have cut the need for human input into day-to-day equities trading. What business remains has structurally “moved away from banks,” Cryan said on his last quarterly earnings call with analysts in February. Cryan had said at the time that the bank should take that into consideration when making decisions on where to cut and where to invest.
www.bloomberg.com/news/articles/...trenchment-in-u-s-equities
mal sehen ob da wirklich schon etwas kommt am Donnerstag ...
A decision could come as early as this week and may be communicated as part of a larger package of changes to the German lender’s securities unit, said the people, asking not to be identified because the details are confidential. No final decision has been made, according to the people.
A spokeswoman for Deutsche Bank declined to comment.
Cash equities, or the trading of regular stocks, has traditionally been a core business of investment banks, but regulation and technology have made it less profitable for banks. A retreat in that business in the U.S., where Deutsche Bank has struggled to compete with the large Wall Street firms, would mark the first strategic decision for new Chief Executive Officer Christian Sewing, who took over from John Cryan earlier this month. In a first memo to staff, Sewing took a tough line on the bank’s stubbornly-high costs and said the bank will pull back from areas where it’s “not sufficiently profitable.”
The cash equities business has suffered from a transition to automated trading and passive investing, both of which have cut the need for human input into day-to-day equities trading. What business remains has structurally “moved away from banks,” Cryan said on his last quarterly earnings call with analysts in February. Cryan had said at the time that the bank should take that into consideration when making decisions on where to cut and where to invest.
www.bloomberg.com/news/articles/...trenchment-in-u-s-equities
mal sehen ob da wirklich schon etwas kommt am Donnerstag ...
