Deutsche Bank's decision to replace embattled CEO John Cryan with retail-focused Deutsche veteran Christian Sewing portends potential bad news for current and potential investing banking employees in the U.S. But the timing could be particularly hard for a certain subset of U.S. IBD and securities staffers.
The 47-year-old Sewing has been working at Deutsche Bank since his teenage years and will take over from Cryan with immediate effect after an emergency meeting by the lender's supervisory board on Sunday night. Mr Cryan has been in office less than three years but investors have lost faith that he can return the bank to profitability after three consecutive years of losses.
Sewing, who joined Deutsche Bank as a teenager and most recently led its retail banking division, provided a limited view of his plans in a letter to employees that was posted to the bank's website on Monday.
2009 - Jain and investment banking co-head Michael Cohrs are the only board members to get a "division related" compensation component.
Since Mr. Cryan started the activity in 2015, there has been a progression of embarrassments and additionally three years of detailed misfortunes.
Vetr upgraded shares of Deutsche Bank AG (NYSE:DB) from a buy rating to a strong-buy rating in a report released on Tuesday morning. It says a comprehensive analysis led to the conclusion it needed "a new execution dynamic" in its leadership.
The Bloomberg Dollar Spot Index has already fallen 3 percent this year, adding to an nearly 9 percent loss in 2017.
Sewing said that "we want to and have to become profitable again". "It seems rather to be a fundamental "Deutsche Bank problem".
He said Deutsche Bank needed to set the bar for revenues higher in all businesses and stick with its 2018 target for adjusted costs of no more than 23 billion euros ($28 billion). With Deutsche Bank's future more clouded than ever, the lender's board decide to make the move, looking to rely on one of its own to reverse course.
Deutsche Bank Aktiengesellschaft provides investment, financial, and related products and services to private individuals, affluent clients, and small and medium sized corporate clients worldwide.
Achletiner described Sewing's appointment as the beginning of a "new era" for Germany's biggest bank.
After sounding out external candidates - including JPMorgan Chase & Co.'s Matt Zames and Bank of America Corp.'s Christian Meissner - the bank's directors rushed to bring some order to the situation.
Gendell Jeffrey L reduced its stake by 67.7% in Deutsche Bank Ag (Call) (DB), according to 2017Q4 Securities and Exchange form.
Sewing, who previously worked in Toronto, London, Singapore and Tokyo, could heed calls to focus more on the bank's home market.
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