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CORRECTED-Deutsche Bank rethinks the model - CMTS carved up
October 20, 2015 / 9:29 AM / in 2 years

CORRECTED-Deutsche Bank rethinks the model - CMTS carved up

(Clarifies division in third para, adds bank declined to comment)

By Alex Chambers

LONDON, Oct 19 (IFR) - Dozens of senior Deutsche Bank bankers could be left scrambling for their jobs after a new organisational overhaul. Deutsche’s new co-chief executive, John Cryan, is moving to split the investment bank into two units, and therefore eliminating the cross-business roles designed to remove divisional silos.

The German bank is returning its structure to that which existed when Michael Cohrs ran origination and Anshu Jain headed markets, with both reporting to chief executive Josef Ackermann.

That simpler model consists of corporate and investment banking (CIB) on one side (including advisory, corporate banking and transaction banking), and global markets (including the sales and trading operations) on the other.

However, the future of one key business - capital markets and treasury solutions - remains unclear.

CMTS highlights the challenge the bank faces in redesigning its business. It is an institutional client-servicing group that covers corporate, financial institutions, and the public sector.

It structures and underwrites primary equities, bonds and syndicated loans, while providing risk management and treasury solutions.

This cross-business model will need reshaping if it is to fit neatly in the new Deutsche Bank. A number within this group, such as sales professionals, do not fit well within origination roles, and look set to move to the wider sales team that is now part of markets. The logic of this new structure suggests that coverage is taken over by the new combined CIB group.

Deutsche Bank declined to comment.

Global risk syndicate, a key partner for CMTS, will sit within the CIB division. (Reporting by Alex Chambers, editing by Sudip Roy, Matthew Davies, Julian Baker)

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