Employees at Deutsche Bank are braced for a major overhaul: sweeping job cuts, major changes at the investment bank and departures from the top management. CEO Christian Sewing is leaving no stone unturned in his quest to bolster the business.
The board of Deutsche Bank is meeting this weekend to discuss the fine print of the sweeping changes that have been anticipated widely. Some of the details however have already emerged.
The elimination of as many as 20,000 jobs for instance, reported by «The Wall Street Journal»(behind paywall), seems to be set in stone. Now, «Sueddeutsche Zeitung» has details on the impending destruction of the investment bank. CEO Christian Sewing wants to create a unit dedicated solely to his major clients. In the corporate banking division, investment banking would be cut to size.
Ritchie, Matherat, Steinmueller, von Moltke
Under the circumstance, the departure of investment banking chief Garth Ritchie seems more than likely. Fellow executive Silvie Matherat, head of compliance, also is said to be a likely departure. Others are set to follow the two: Werner Steinmueller, the head of Asia and CFO James von Moltke are reportedly in the firing line of their boss. «FAZ», the German daily newspaper, meanwhile sees Steinmueller and von Moltke firmly rooted at the company.
And all of a sudden, there’s the case of private banking head Frank Strauss popping up, with reports claiming that Sewing and Strauss have fallen out.
Jostling for Power
Strauss, a former professional hockey player, became head of Postbank in 2012 and had been given the job to lead the private clients’ business by Sewing. The two are said to have clashed over a power struggle during the negotiations with Commerzbank that ultimately foundered.
With investment banking having had a tough start to the year, action has become urgent for the bank. Sewing looks willing to break the power of the investment bankers and also willing to remove opponents within the executive.
