Like any great saga told in carefully-planned stages fitting together to augur a dark conclusion, the fall of Deutsche Bank has been careening towards a massacre for many moons. And now a new power has emerged ready to bring order to the Deutsche Bank universe, no matter how much carnage and chaos it takes to instill it.
Today, we saw the first bloody step in Christian Sewing's master plan to create a new Deutsche Bank in the ashes of what came before it...
A person with knowledge on the matter told the Financial Times that 300 US-based investment bank staff were fired on Wednesday before the bank’s announcement, with another 100 to be laid off by the end of this week. The person added that those job cuts are just the prelude to further redundancies in the coming weeks. Deutsche at present employs about 10,000 people in the US.
This culling is just a taste of what is to come for Deutsche, for Sewing is making it quite clear that his blitzkrieg has just begun...
“We are not strong enough in [some] areas,” Christian Sewing, Deutsche’s chief executive, said on the group’s CIB. “Therefore we have to act decisively and to adjust our strategy. There is no time to lose as the current returns for our shareholders are not acceptable.”
The lender said it would exit from its investment banking activities where it lacked a “sustainable competitive advantage”. It did not disclose the number of job cuts it was planning.
We haven't heard back from any of our tipsters inside DB, so we're starting to get concerned that this bloodbath has claimed them as well. Get in touch if you can.
Stay strong, Deutsche Bankers.