Deutsche Bank has announced a comprehensive organisational restructuring and reorganisation of key management roles in a move that will fundamentally change its group and leadership structure. At an extraordinary meeting today in Frankfurt, the supervisory board of Deutsche resolved to restructure the divisions which will be supplemented by a reorganisation of executive committees and senior management changes.
The guiding principle for the changes, in light of the bank’s strategy 2020, is to reduce the complexity of its management structure. The German bank is one of the top five providers of structured products in Europe. This year, Deutsche has sold over €3.2bn in Europe and holds a 5% market share in the region. At a global level, Deutsche has over 335,000 live products, most of which were sold in Germany and Austria (334,009 products), but also in the US market (945 products), Belgium (239 products), Portugal (132 products), Taiwan (48 products) and Japan (22 products), among others.
Corporate banking & securities (CB&S), which houses equity derivatives and structured products, is a principle part of the restructuring and will be split into two divisions. Effective January 1, 2016, a division called corporate & investment banking will be created by combining corporate finance in CB&S and global transaction banking (GTB).
CB&S’s sales and trading in the markets business division will be combined in a newly created Global Markets division, which will comprise the sales, trading and structuring of financial markets’ products, including bonds, equities and equity-linked products, exchange-traded and over-the-counter derivatives, foreign exchange, money market and securitised instruments, and commodities.
Under the new framework, the name CB&S will cease to exist. Additional changes will affect Deutsche Asset & Wealth Management (DAWM), with high net worth to be served by private wealth management, which will be run independently within the private & business division. Deutsche Asset Management (Dam) will become a stand-alone division and deal exclusively with institutional clients and funds, according to Deutsche.
Quintin Price, most recently global executive committee member and head of alpha strategies at BlackRock, will take on management board responsibility for Dam from January 1, 2016; while Michele Faissola (pictured), head of DAWM), will leave the bank after a transition period. Faissola joined Deutsche in 1995 and has held a number of senior roles at the bank, including global head of OTC derivatives.
Deutsche made a number of changes to its global equity derivatives sales and structuring divisions in mid-September as part of the overhaul of equities, including the appointment of Ted Gonedes as head of global equity derivatives institutional sales in Europe, Middle East and Africa; Tom Leake as global head of the equity structuring group; and Remy Ripoll, formerly global head of equity structured products, as head of trading, Asia Pacific in Hong Kong.
Deutsche did not respond to requests for comment.
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