First came Deutsche Bank’s Strategy 2020, where it signalled a retreat from the universal banking model, then came the exits. Richard Herman, global head of fixed income and currencies at the bank, is off to “walk the earth” or the more classic ‘pursue other interests’ outside of finance.
Deutsche Bank’s senior ranks are not being decimated in the manner of Barclays’ investment bank last year, but in recent weeks they’ve been chiselled back. Aside from the managing directors ejected in the wake of the Libor scandal, other senior Deutsche bankers are also heading for the door.
Murray Roos, the co-head of equities and global prime finance at Deutsche Bank joined Citigroup last month. Meanwhile, Simon Grenfell, global head of commodities structuring and origination at Deutsche, has left following the decision to wind commodities activities down.
Deutsche Bank has also been losing some senior bankers elsewhere in the business. Karsten Le Blanc, a managing director in key client partners in London, is currently on gardening leave after just under two years at Deutsche Bank. He joined after a long stint at Credit Suisse, where he spent nearly 18 years in both investment banking and wealth management.
Meanwhile, Shaheen Yusuf, a managing director who has worked at Deutsche Bank for over 14 years, also departed earlier this month.
Deutsche Bank has said it wants to cut an additional €3.5bn in costs, which our German editor suggests could result in 12,000 jobs lost across the business. The vast majority of Deutsche’s ‘material-risk takers’ – regulated employees subject to the most onerous bonus deferrals – lie within senior roles within its corporate and investment bank and earn an average compensation of €1m. Paring back at the top appears to be quicker method of cutting costs.