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Exclusive: Deutsche Bank poised to name investment banking leaders - sources

Published 10/11/2015, 12:44
© Reuters. The Deutsche Bank headquarters are seen in Frankfurt
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By Olivia Oran and Anjuli Davies

NEW YORK/LONDON (Reuters) - Deutsche Bank (DE:DBKGn) could announce a new executive structure at its investment bank as soon as this week, as part of chief executive John Cryan's shake-up of Germany's largest lender, sources familiar with the matter told Reuters.

The German bank, which has a big presence on Wall Street, announced in October that it would split its investment bank in two after mounting shareholder pressure for reform, with one part focusing on corporate and investment banking - traditional mergers and acquisitions and other advisory work - and the other on sales and trading.

The corporate and transaction banking operations have been brought together in a Corporate & Investment Banking unit to be overseen by current investment bank co-head Jeff Urwin.

Deutsche poached Urwin, a Briton, in February from JP Morgan, where he co-headed the global banking unit, having joined the U.S. bank in 2008 as part of its acquisition of Bear Stearns.

"He's shaking things up, he's expected to bring in his exco (executive committee) pretty soon," said one of the sources.

"They've already done the senior level appointments so now you need the exco for CIB and Markets."

As part of the radical overhaul, both divisions are set to announce their executive committees imminently, said the sources, with two saying it could be as soon as this week.

The sources spoke on condition of anonymity because the details are not yet public. A Deutsche Bank spokesman declined to comment.

One key role up for grabs is that of global mergers and acquisitions head which remains vacant after Henrik Aslaksen left the bank at the end of June. Sources said that an external search firm has been called in to oversee the selection process.

Deutsche Bank has already poached Goldman Sachs (N:GS) banker Alasdair Warren as its new head of corporate and investment banking for Europe, the Middle East and Africa (EMEA), two sources familiar with the matter said on Nov 2.

The sales and trading activities will form a new division called Global Markets, and will be run by Garth Richie, currently head of its equities business.

As part of its revamp, the bank plans to slash as many as 35,000 jobs over the next two years, shut operations in 10 countries and reduce the number of investment banking clients.

"Urwin is talking about the need to go deeper with fewer clients," said another of the sources.

"This applies particularly to cross-selling products."

Bankers will be encouraged to take a more collegial approach to customer relationships, focusing on fewer clients but selling more products to each of them.

Urwin has focused on improving the average number of products which are cross sold by Deutsche Bank and comparing that to the number at competitor JPMorgan (N:JPM), where the figure is more than double, one of the sources said.

But Deutsche Bank's capital markets and treasury solutions division (CMTS) - a cross-product group which serves institutions such as corporations, banks and public sector clients - is being dismantled according to several sources.

© Reuters. The Deutsche Bank headquarters are seen in Frankfurt

    CMTS structures and underwrites share offerings, bonds and syndicated loans, while also providing risk management and treasury solutions. This team now cuts across both of the bank's two new divisions - corporate investment bank and markets.

(additional reporting by Arno Schuetze in Frankfurt and Greg Roumeliotis in New York, editing by Anna Willard)

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