Deutsche Bank mass layoffs


#1

#2

No word yet in the Irish MSM of any DB layoffs.


#3

No one is prepared for what’s coming - They’re waiting to receive government mandated and approved spin and taking points.

Do you think they’re just being briefed about no deal Brexit? It’s a quaint idea but as I wrote above, no one is prepared for what’s coming especially those who are mere vassals.


#4

nothing to do with brexit. DB was as big a mess as Anglo or AIB in 2008. It got past the immediacy of the crash but it was a matter of time. It has limped on since but its a basket case. Anyone looking at the DB thread could see.


#5

You misread my post. You’re not prepared. No one is.


#6

Stating I’m not prepared is a bit condescending.

‘Do you think they’re just being briefed about no deal Brexit?’

I think it is clear I read your post correctly.


#7

It is clear you got the wrong end of two sticks.


#8

maybe you could be less cryptic in your analysis of the Investment Banking industry.

Why do you think European banks cannot compete against the US banks?

Why did Deutsche’s acquisition of Banker’s Trust go so wrong?


#9

DB’s main issue is that they went head to head with the main IB banks, JPM, GS, MS in their own backyard. These guys provide low returning corporate loans to the major customers in return of fees on M&A deals. DB coming in to offer the main acquisiting companies in the US loans when they have been already courted by the big guys meant that they have exposure them to very low returns without the fee upside.

The Chinese (the main market in Asia) market is similarly tough for banks to break into particularly and has been for a very long time. Hence why many of the layoffs were in this region.

Most banks globally have their eyes focused on income cost ratios. You see it in Bank of Ireland wanting to lay people off and Irish banks trying to increase their current account fees. Banks have for too long operated under the thought process that they will always make money - their funding model depends on them doing this, but it has lead to banks taking on too many costs including many paid much more than they contribute.

The attacks banks are under are from 1) regulators who are imposing costly processes, 2) virtual type companies like Revolut taking their retail fee business and 3) the shadow banking taking many of the more profitable loans for banks. Plenty of changes coming for banks over the next decades.