Deutsche Bank to undergo 'tough cutbacks'
Deutsche Bank CEO Christian Sewing has announced the bank will need to implement radical changes to make operations more profitable and cut losses, Financial Times writes. Sewing said it might need “to make tough cutbacks” to achieve it, although he didn't specify which operations would be affected. It is likely its U.S. equities business, which has been generating losses, might be one of the targets.
During the last 13 months, Deutsche Bank share value has fallen by 40 per cent. Following the announcement, the price has fallen to €6.42.
“We will accelerate transformation by rigorously focusing our bank on profitable and growing businesses which are particularly relevant for our clients,” said Sewing.
Sewing also said there will be a merge of “parts” of its compliance and anti-financial crime unit with non-financial risk management.
The bank is currently undergoing money-laundering investigations. In the past, it has paid hefty fines for breaching money laundering and sanction rules. It also recently divulged a software glitch in its screening software that might have prevented flagging suspicious transactions for nearly 10 years.
