Corporate And Investment Banking To Be Restructured By Deutsche Bank

The creation of a separate business for its equity, debt and leveraged capital markets operations, are among the plans that Deutsche Bank AG is making to create a completely new structure for its corporate and investment banking division, the bank announced recently.

Appointed as co-heads of the bank’s newly-combined investment banking and trading units earlier this year were Marcus Schenck and Garth Ritchie, and the German lender has also unveiled details of the division of responsibilities between these two executives. He wants that the reunited business will pare the list of fund managers and other institutions it serves and to focus more on corporate clients, Chief Executive Officer John Cryan had said in March.

Sources were quoted in media as saying that while Ritchie will deal with products and processes and oversee operations including equities, fixed income and currencies, global transaction banking, electronic trading, and listed derivatives and clearing, Schenck will focus on clients, and have oversight of corporate finance, global capital markets and the institutional client group.

There were no comments from Troy Gravitt, a spokesman for the firm.

Sources further told the media that reporting from Frankfurt and New York, respectively, Alexander von zur Muehlen and Mark Fedorcik, would be heading the Bottom of Form

newly-created Global Capital Markets division. The new division will “operate financially as a joint venture” between its corporate finance, equities and fixed income and currencies units, and will work in partnership with the bank’s corporate finance and institutional client group, sources also told the media.

Schenck and Ritchie, who were co-authors of an internal company email, would the reporting heads for Fedorcik and von zur Muehlen.

By putting short-term earnings ahead of Deutsche Bank’s long-term interests, previous management teams made the bank too complex and inefficient, Cryan has said. And therefore, to overhaul the lender, he is now implementing long-term plans.

The corporate finance business will operate as one global business, run by existing regional heads, Deutsche Bank also said in the note to employees. According to sources,  for the division’s corporate banking coverage operation for the Asia-Pacific region, the bank will soon announce a new head.

The media also reported quoting sources from the bank that Kenan Altunis and Stefan Hoops, who will report to Schenck and Ritchie, would also co-head the bank’s institutional client group.

Known as CIB Central and headed by Christiana Riley and Lawrence Shaw, Schenck and Ritchie also discussed the recent decision to create a corporate and investment banking hub. The two executives wrote in the internal e-mail, as reported by the media, that intended to “reduce bureaucracy and complexity, which will achieve substantial cost savings in 2017”, the division support teams are being reorganized to meet that end.

(Adapted from Bloomberg)

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