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Investment Banking Firm Deutsche Bank Adjusts Corporate Vision

In banking news, Deutsche Bank is restructuring its corporate and investment banking operations, reports said Thursday (June 16).

Bloomberg reports that a memo sent within the bank that explains how co-head of its investment banking and trading operations Marcus Schenck will oversee the reorganization as Deutsche Bank adjusts its strategy with corporate clients. Reports said Schenck will head the bank’s corporate finance, global capital markets and institutional client group.

Co-head Garth Ritchie, reports added, will focus on equities, fixed income and currencies, according to the memo. Within its investment banking unit, Deutsche will create a unit for combined debt, equity, and trading and leveraged capital markets. Dubbed the Global Capital Markets division, the new unit will have Alexander von zur Muehlen and Mark Fedorcik at the helm.

The Global Capital Markets unit will work alongside the corporate finance and institutional client group and, according to the memo, “operate financially as a joint venture” with corporate finance, equities, and fixed income and currencies.

News reports said Deutsche is looking for ways to bounce back from a reduction in market share and plans to cut $742 million in costs by next year. Nearly two-thirds of its balance sheet, reports added, is dedicated to corporate clients.

“Schenck is extending his grip within the organization,” Gildas Surry of Axiom Alternative Investments told Bloomberg. “He joined Deutsche Bank to pursue an ambitious agenda, and today is another milestone in his ascent.”

“It makes sense that Deutsche Bank is now working out the details of the new structure for the investment bank,” said Macquarie Bank analyst Pier Brown in another interview with the publication. “If you are buying Deutsche, you may expect that they are trying to at least maintain market share in the investment bank, and this is something Schenck will be measured against.”

Kenan Altunis and Stefan Hoops will lead the bank's institutional client group.

A spokesperson for Deutsche Bank declined to comment.



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