Deutsche Bank to streamline operations in Russian Federation
Paul Frankfurt, head of block trades in Europe, the Middle East and Africa, left the firm to join investment advisory services business Anoa Capital S.A. Christian Gaertner, head of equity capital markets for Germany, Switzerland and Austria at Bank of America, left to join HelloFresh GmbH as its chief financial officer.
The proposed closure will be largely complete by year-end and will result in about 200 job losses. The Moscow corporate banking and securities business will close and move to other global hubs. The Company diversifies its activities into three group divisions: Corporate & Investment Bank (FRA: DBK) Private Clients and Asset Management (PCAM), and Corporate Investments (CI). Mr. Fitschen will stay on until as Mr. Cryan’s co-CEO until May 2016, the bank said.
Deutsche was asked a year ago by Russia’s national bank about the exchanges of some Russian customers.
The DOJ’s new criminal investigation of the German bank involves so-called mirror trades, whereby traders apparently permitted Russian clients to transfer money overseas without properly alerting authorities. Investigators are looking into allegations of money laundering by the bank’s Russian clients, and conducting probes into its compliance systems. NCOU runs as a separate division alongside Deutsche Bank’s core businesses.
Deutsche Bank AG is considering sweeping changes that could include scaling back or closing operations in some countries as well as overhauling the bank’s executive ranks, according to people familiar with the matter, the Russian daily newspaper Vedomosti reported with reference to The Wall Street Journal.
Cryan took control of Germany’s biggest bank in July with the promise to cut costs.
The pullback in Russian Federation is unlikely to be the only adjustment in the scope of DB’s worldwide operations.