#6934573 at 2019-07-06 23:19:24 (UTC+1) Q Research General #8871:Explosion in the Plantation! Edition
Deutsche Bank Drastic Overhaul Set to Return Lender to Its Roots
(this is quite the spin job as this 'restructuring' is being presented as some sort of choice they can make-just remember this: If this thing implodes it will send MASSIVE shock-waves across the system that have NEVER been seen before-have some cash as your credit/debit cards will be impacted)
Sewing ready to end long pursuit of global trading dominance. Revamp of staff, divisions puts German corporate clients first.
One year ahead of its 150th anniversary, Deutsche Bank AG is returning to its roots.
The era of going head to head with international banking giants in a high-risk, high-bonus game of global finance is ending as the bank goes back to what it was created for in the late 19th century: serving Germany's big companies.
Chief Executive Officer Christian Sewing is set to present on the lender's most sweeping restructuring in recent history on Sunday. It will sever many ties with institutional clients – one of the bank's key income sources – while seeking to boost its appeal to domestic corporations.
Sewing plans to slash headcount, drastically cut securities trading outside Europe, create a new division for transaction banking services and another unit to hold unwanted assets, shake up the bank's top leadership and cut the balance sheet, people familiar have said.
The radical move wasn't Deutsche Bank's first choice. The company went through a series of less severe turnaround plans, and executives, in search of a plan that would improve the bank's persistently low profitability. That has pushed the share price from one record low to the next, deeply frustrating shareholders and even alarming regulators and politicians.
Investment bank chief GarthRitchie is leaving at the end of the month, the bank said. Retail head Frank Strauss and Chief Regulatory Officer Sylvie Matherat are also set to depart, people familiar with the matter have said. Several executives below the board are likewise being dismissed.
The investment bank is a key focus of the revamp. The unit, which accounts for roughly half of Deutsche Bank's revenue and was a major actor in its downfall, will be broken in two. The transaction bank will be lifted out and merged with the commercial clients segment that's currently within the retail division, people familiar with the matter have said.
The change is designed to accelerate the shift of Deutsche Bank's focus away from acting as the first port of call for institutional clients such as asset managers and hedge funds toward becoming the primary bank selling cash management, trade finance and hedging products to corporate clients. The new division, to be lead by current transaction bank head Stefan Hoops, will be at the heart of the lender's future business model.
The securities business will be shrunk, perhaps drastically. Sewing wants to slash equities trading and parts of the fixed-income business. Those assets will be placed in non-core unit to sell or wind them down. The U.S. operations will be particularly hard hit, with the bank getting ready to start rolling out the job cuts on Monday, people familiar with the matter have said.The decision to pull the plug on a big part of securities trading effectively ends a 30-year effort to become a global trading powerhouse that kicked off when Deutsche Bank took over London-based investment bank Morgan Grenfell. That deal, and the subsequent acquisition of U.S.-based Bankers Trust a decade later, briefly turned the German lender into the world's biggest financial services company and set it on a course to become the largest buyer and seller of fixed-income securities as well.
The expansion eventually ground to a halt and then shifted into reverse at an accelerating pace as tougher regulation in the wake of the financial crisis rendered many trading businesses unviable. Meanwhile, a failure to root out shortcomings in its self regulation led to a string of legal proceedings that have cost billions of euros in fines and settlements and continue to hang over the bank to this day.
A rapid succession of CEOs tried to turn the bank around – Sewing tried out his own plan last year – but all their efforts fell short. A crisis of confidence three years ago pushed the bank's funding costs well above those of the competition, eliminating what had been a crucial advantage underpinning Deutsche Bank's growth in trading. The bank never managed to recoup all of the money that hedge fund clients pulled during that crisis.
rest at link
#6926048 at 2019-07-05 21:26:50 (UTC+1) Q Research General #8860: Trump Era Edition
RenTech Pulls Cash From Deutsche Bank As Insider Warns Of "Lehman-Style" Scene
With Deutsche Bank CEO Christian Sewing set to unveil his sweeping restructuring plan to the struggling German banking behemoth's board on Sunday - a plan that's expected to focus on brutal cuts to DB's investment bank - the longtime head of that unit, GarthRitchie, has reportedly quit, according to the FT.
On Friday, DB said that Mr Ritchie would step aside "by mutual consent", ending his more than 20-year run at the bank.
But the bank's mass-firings of both executives and rank-and-file staff are only just beginning.
Though news of Ritchie's departure was telegraphed well in advance (he was widely expected to depart before Sewing unveiled his turnaround plan to the bank's board on Sunday), DB has been rocked by some unexpected news that could revive the sense of fear and panic that sent investors running for the exits back in 2016, when many believed a massive DoJ fine might sink the bank.
Echoing a mini-bank run from late 2016 when hedge funds that cleared derivatives trades with the bank started withdrawing excess cash and positions held with the lender, Renaissance Technologies, the giant hedge fund that has been one of DB's largest prime brokerage clients, has reportedly been taking money out of its prime brokerage accounts with the German lender over the past few months, according to people familiar with the move.
According to Bloomberg, while the secretive quant fund giant remains a major client of Deutsche Bank, it has been quietly moving business to Barclays, Bank of America, and others, according to several sources who weren't identified. Reps for both DB and RenTech declined to comment when approached by BBG reporters.
Hedge funds have been migrating away from DB for years. According to "people with knowledge of the matter", through the end of last year, revenue from executing trades and lending securities to hedge funds was down by more than one-third compared with 2015.
Back in 2016, news of the hedge fund bank run sent DB short-term CDS soaring. Though Friday's news hasn't had much of an impact on the costs to insure Deutsche Bank debt, that could soon change.
#6923782 at 2019-07-05 15:34:05 (UTC+1) Q Research General #8857: Friday the Fifth Edition
Morning Market Report-*jobs,jobs,jobs edition
10Y is back over 2.00%-see cap#3. Stock futures are sinking. The Dollar is spiking which, in turn, sent gold down as well, see cap#5.
June Employment Report: 224,000 Jobs Added, 3.7% Unemployment Rate
Total nonfarm payroll employment increased by 224,000 in June, and the unemployment rate was little changed at 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in professional and business services, in health care, and in transportation and warehousing.
The change in total nonfarm payroll employment for April was revised down from +224,000 to +216,000, and the change for May was revised down from +75,000 to +72,000. With these revisions, employment gains in April and May combined were 11,000 less than previously reported.
This is also skewed by an increase in hiring for the upcoming census.
The gov't really needs to overhaul these metrics in a big way. These are always revised down the next month and using rolling averages is a legacy issue created by several past administrations to hide or mask the true nature of job growth/contraction.
See here for a better read on what the true picture is: http://www.shadowstats.com/
CME data, Cap#4 has dropped the odds of a bigger than .25%(25 basis point cut) on the news. This was also the best monthly increase since January, and a number that has made 2 rate cuts at the Fed's July meeting virtually impossible, and even setting the scene for a Fed that may in fact be "patient" in three weeks, crushing market hopes for an imminent easing cycle.
The odds of a 50bps cut in July have plunged from 27% to 9%. We will get a .25% rate cut, a bigger one would have been nice but such is life. I doubt they would have done it anyway
In ded bank walking news…we have this:
Deutsche Bank's investment bank chief Ritchie agrees to step down
Deutsche Bank's investment banking chief GarthRitchie is stepping down, the bank said on Friday. The move, long speculated, comes as Deutsche prepares a broad multi-billion dollar overhaul that will see big cuts to the investment banking division.
European bourses suffered with the pan-region STOXX 600 slipping 0.3%, dragged lower by the basic resource and industrial goods & services sectors which both fell more than 1.5%. A sharp drop in China iron ore futures hit miners. Tech shares retreated 0.9% after Samsung's dour forecast showed the impact of U.S.-China trade war on global chip and smartphone markets, sending Infineon, STMicroelectronics and Siltronic as much as 1.5% lower.
German data showed Europe's largest economy was still stuck in pre-recessionary limbo with industrial orders falling far more than expected in May, and a warning from the economy ministry this sector of Europe's largest economy was likely to remain weak in the coming months.
Europe's losses followed gains in Asia, where MSCI's index of Asia-Pacific shares ex-Japan was set for its fifth straight weekly rise. S&P futures and Shanghai Composite index both hovered near 3,000-mark in muted post-holiday trade. Asian stocks traded sideways, heading for the fifth week of gains, their longest winning streak since January 2018
In rates, Treasury futures dipped, lifting the 10-year yield fractionally to 1.958% after hitting the lowest since November 2016 at 1.941%; Aussie curve little changed. JGB futures edge higher, supported by buying in ultra long-end, despite strongest Japanese spending pace in four years.
Germany's 10-year government bund yield, fell to minus 0.4% and breached the European Central Bank's deposit rate for the first time - a level analysts say acts as a psychological barrier even though shorter-dated German bond yields trade well below it.
China continues to stress that the U.S. must remove all the tariffs placed on Chinese goods as a condition for reaching a trade deal. Sorry not gonna habben but you go right ahead and keep gas-lighting that line as it won't work. The hubris of that is just astounding…like we did not build your country up with
the socialistic policy's the democrats forced all of us to accept in favor of your economy-fuck you.
A few sentences taken from this ZH article
#6789526 at 2019-06-19 16:56:04 (UTC+1) Q Research General #8684: Rally Day + 1: The Gloves Are Off Edition
Deutsche Bank seeks to shed risky assets as part of overhaul
FRANKFURT (Reuters) - Deutsche Bank is aiming to cut up to a quarter of its riskiest assets in the next few years, people familiar with the matter said, shedding more light on how the German lender is trying to overhaul its business and revive profitability.
The plan provides more detail on a restructuring expected since Chief Executive Officer Christian Sewing promised shareholders "tough cutbacks" to turn the bank around after it botched an attempted merger with rival Commerzbank.
The bank's shares, which have hit record lows in June, have perked up on expectations that a major overhaul is underway.
Deutsche is expected to talk to top investors within days to elaborate on its plans, a person with direct knowledge of the matter said. The group will unveil the strategy in July, other people say.
The bank has struggled to bounce back after the 2008 financial crisis and has been plagued by failed regulatory stress tests, multi-billion dollar fines and management upheavals and most recently a failed merger.
Deutsche's biggest business by revenues is its investment bank, which holds swathes of high-risk assets such as complex derivatives. Cutting back on risky assets would in theory allow Deutsche to hold less capital and use this money for other purposes to try to boost profit.
Under the plan, Deutsche will reduce its so-called risk-weighted assets by between 20% and 25% over the next three-to-five years, the people said, speaking on condition of anonymity.
Risk weighting is where a bank assigns a risk of losses to an asset, such as a derivative or loan. That, in turn, determines how much capital it needs to cover such a loss.
The bank held 347 billion euros ($388.61 billion) in such assets at the end of the first quarter, according to Deutsche's quarterly results. A 25% reduction would bring assets to about 260 billion euros.
Deutsche Bank declined to comment but said it was working on measures to accelerate its transformation so as to improve its sustainable profitability. "We will update all stakeholders if and when required," the bank said.
Other changes include shrinking or shutting equity and rates trading businesses outside of Europe. Deutsche is also planning to create a "bad bank" for non-core assets, which can be a way to reduce risky assets over time. In an internal bad bank, risk weighted assets remain on the bank's balance sheet until they are wound down.
One of the big open questions is how many jobs Deutsche will cut. The bank has already pledged to reduce headcount to under 90,000, from the current 91,463.
Analysts and some investors would like to see a staff reduction of more than 10% for the overhaul to be credible.
Deutsche management is also in flux. Pressure to step down has been building on GarthRitchie, head of the investment bank, and Sylvie Matherat, chief regulatory officer, according to people with direct knowledge of the matter.
The bank has declined to comment on the possible shake-up.
The revamp will delay further some of the bank's goals. Deutsche is widely expected to miss its key profitability target - a return on tangible equity of 4% - in 2019.
Swiss banks UBS and Credit Suisse have already restructured by paring down their investment banks and are today on stronger footing, providing hope for Deutsche Bank, analysts say.
But competition is heating up on Deutsche's home turf. Standard Chartered earlier this year opened its new European Union headquarters in Frankfurt next door to Deutsche's head office.
The bank aims to take on Deutsche's core clientele - big German corporations - by offering them services in far flung countries, Standard Chartered CEO Bill Winters told reporters on Tuesday.
#6600877 at 2019-05-27 16:30:46 (UTC+1) Q Research General #8440: Memorial Day 2019 Edition
Deutsche Bank Reviews Capital Raising as Option for Overhaul
*Lender is concerned that fundraising would trigger backlash
*Company aims to slash the capital allocated to trading unit
a little late for this……but please go ahead and try to get moar operating capital- you won't.
Deutsche Bank AG is considering options including a capital increase as part of a wider overhaul it plans to unveil in the next two months, people with knowledge of the matter said.
Tapping investors for fresh cash is the least favored option because management is aware that it could trigger a backlash in light of Deutsche Bank's low stock price, said the people, who asked not to be identified in discussing ongoing deliberations. Still, the bank hasn't taken the option off the table as it may be needed to fund substantial cuts to the investment bank.
The restructuring plans being explored aim to significantly cut the trading business, resulting in tens of billions of euros in risk-weighted assets being removed from the division's balance sheet and placed in a separate unit to be wound down, the people said. The move could require the bank to come up with capital to fund the new non-core unit, they said.
Chief Executive Christian Sewing has signaled deeper cuts as Germany's largest lender struggles to make a profit, deeply frustrating shareholders who have seen the stock fall to a record low. The investment banking division, run by GarthRitchie, has long been one of the biggest headaches for Sewing, whose previous attempts to lift profitability at the unit have largely foundered.
A spokesman for Deutsche Bank declined to comment.
it's ded jim….ded.
Deutsche Bank pared gains on the news, trading 0.8% higher at 1:54 p.m. in Frankfurt after rising as much as 2.3% earlier. The stock hit a record low last week.
The lender has raised almost 30 billion euros ($34 billion) in four capital increases over the past decade.
The last time it tapped shareholders was in 2017, when it got 8 billion euros under then-CEO John Cryan.
Sewing said last week he won't shy away from "tough cuts" to the investment bank, without specifying where they would occur. He singled out areas that are performing well and therefore are likely to be exempted, such as origination and advisory as well as foreign exchange, global credit trading and U.S. commercial real estate. He didn't mention the equities business and interest rates trading, suggesting cuts there are probable.
The bank has been working on a Plan B for some time to present to investors after the collapse of merger talks with Commerzbank AG. Sewing has considered options including accelerated cost cuts as well as a more comprehensive strategic revamp that would result in upfront restructuring costs, Bloomberg reported in April.
Deutsche Bank's investment banking division had 228 billion euros of risk-weighted assets on its books at the end of the first quarter, or roughly two thirds of the lender's total.
in one place-how's that working for ya?
The Wall Street Journal previously reported on Deutsche Bank's plan to set up a non-core unit.
this is the 'good bank/bad bank' scenario-that won't work either.
The bank last created a non-core unit in 2012 under then-CEO Anshu Jain with 125 billion euros of risk-weighted assets. It took the bank about four years to wind it down, creating more than 11 billion euros in pretax losses for the unit over that period.
#5825804 at 2019-03-22 15:22:07 (UTC+1) Q Research General #7452: Hot Crew Swap Edition
Deutsche Bank chief paid $8 million as top bosses gain first bonuses for four years
FRANKFURT (Reuters) - Deutsche Bank paid its management board members their first bonuses in four years in 2018, with Christian Sewing's 7 million euro (6.03 million pounds) total package making him one of the best paid chief executives in European banking.
Deutsche Bank's politically sensitive pay disclosures, which were revealed in its annual report on Friday, come as it contemplates a merger with Commerzbank, which unions fear could lead to up to 30,000 job cuts.
Sewing, who became CEO in April last year, led Deutsche Bank to its first profit in four years and is heading the talks with Commerzbank. He earned 2.9 million euros for 2017.
His 2018 pay was higher than that of CEOs at several other major European investment banks, including HSBC's John Flint and Barclays boss Jes Staley.
However, the Deutsche Bank CEO received less than his Credit Suisse counterpart Tidjane Thiam, who received 12.65 million Swiss francs (9.7 million pounds).
Deutsche Bank's annual report also revealed that its management board received total pay, including bonuses, of 55.7 million euros in 2018, up from 29.8 million euros a year earlier.
The overall bonus pool for 2018 was 1.9 billion euros, down 14 percent from 2.3 billion euros a year earlier, partly as a result of a reduction in headcount, Deutsche Bank said.
Bonuses are a sensitive issue in Germany, where many politicians and public opinion are critical of high pay and Anglo-Saxon style capitalism.
Fabio De Masi, a prominent leftist lawmaker in the German parliament, said that anyone who can pay 1.9 billion in bonuses does not need to cuts jobs.
"The board doesn't have all their wits about them," De Masi said.
Gerhard Schick, finance activist at Finanzwende and a former member of the German parliament, questioned Deutsche Bank's bonuses if they were meant as incentives for good performance.
"It adds to the negative overall picture of the bank, which is reeling from scandals and now apparently wants to plunge into a bad merger," Schick said.
A spokesman for Deutsche Bank declined to comment.
Deutsche Bank has paid large fines for past misdeeds, including a $7.2 billion U.S. penalty in 2017, spooking clients.
Last year it was ensnared in a money laundering scandal involving Danske Bank and its offices were raided over two days in November in relation to a separate inquiry.
Litigation costs are expected to be "significantly higher" in 2019 than in 2018, Deutsche Bank said in the report.
John Cryan, Sewing's predecessor, received 8.7 million euros in severance pay and a 2.2 million euro payment to compensate him for what he could earn with a competitor.
Last year's management reshuffle, which involved Cryan and three other board members, was costly for Deutsche Bank, which paid a combined 25.8 million euros in severance and restraint on competition fees for the four executives, figures in the annual report and provided by the bank revealed.
GarthRitchie, head of Deutsche's investment bank, was the highest paid board member with earnings of 8.6 million euros last year.
Deutsche Bank pared down the investment bank last year, particularly in the United States, as part of efforts to cut costs.
An executive with Blackrock, a major investor in both Deutsche Bank and Commerzbank, said that a merger between the two lenders "will not work" if the "objective in this operation is to try yet again to create a large, U.S.-inspired investment bank operation".