Deutsche Bank Waves The White Flag
Bloomberg Businessweek|July 15, 2019

The iconic German bank finally pares down its ambitions. But is it too late?

- Elisa Martinuzzi
Deutsche Bank Waves The White Flag

For decades, Deutsche Bank AG had one predominant aspiration: to compete with Wall Street. In abandoning global stock trading, Germany’s biggest bank is giving up on that ambition. No financial company has exited the equities business of this scale before. As Chief Executive Officer Christian Sewing put it in announcing the company’s restructuring on July 7, Deutsche Bank’s “North Star” will now be closer to its Frankfurt headquarters.

It’s a return to its 150-year-old corporate and trade-finance roots. The sweeping and costly rethink hasn’t come soon enough. Years of mismanagement, multibillion-dollar fines, and declining revenue have eroded the company’s profitability. What was once a powerhouse of global finance has been crippled and left with an uncertain future. Nowhere has the lack of confidence in Deutsche Bank’s ability to survive—let alone thrive—been more visible than in its share price. Down more than 90% from its May 11, 2007, peak to record lows this year, the stock market values the lender at about one-quarter of its physical assets. By comparison, JPMorgan Chase & Co., against which Deutsche Bank vies for business, is eight times more expensive.

Under Sewing, a company lifer who worked his way up from an apprenticeship, Deutsche Bank is finally jettisoning what it was never very good at. The equities business has been losing money for years. In retrenching, the bank will shrink its trading activities by as much as 40%, and about 18,000 jobs—almost 20% of the workforce—will go.

While the loss of jobs will be painful for those involved, eliminating a business that’s been a drag on the company is what Deutsche Bank should have done sooner. Once complete, the pivot will see Deutsche Bank focus more on its corporate customers, large and medium-size companies, at the expense of hedge funds and other financial-services clients.

この蚘事は Bloomberg Businessweek の July 15, 2019 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は Bloomberg Businessweek の July 15, 2019 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

BLOOMBERG BUSINESSWEEKのその他の蚘事すべお衚瀺
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 分  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 分  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 分  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 分  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ 分  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ 分  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 分  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 分  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 分  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 分  |
March 20 - 27, 2023