As part of its broad strategic revamp, Deutsche Bank is splitting its investment bank into two separate units. Another part of this revamp will also involve restructuring the whole management of the bank, including top executives and top management.
This move comes after a series of scandals and fallouts from the Asian market that pushed its valuation below its rivals such as UBS (UBSG.VX) and Credit Suisse (CSGN.VX), who had already embarked on their reformation.
Earlier this week, the German flagship lender announced a record pretax loss of 6 billion Euros (£4.4 billion) in the third quarter and warned of a possible dividend cut.
It also added that the sales and trading activities of its corporate banking and securities unit would form a new business division called global markets.
The investment bank’s corporate finance business as well as its global transaction banking operation will be combined in a new corporate and investment banking unit.
Part of the management restructuring, the head of Deutsche’s wealth management business, Michele Faissola, will leave the bank after a transition period. Quintin Price, a former Blackrock manager, will replace him.
In addition, Stephan Leithner, Stefan Krause and Henry Ritchotte are also resigning from the management board.
As part of the overhaul as well, out goes Colin Fan, the Chinese-born co-head responsible for securities trading.
