At the end of 2016 in the Russian office of Deutsche Bank held another round of layoffs of staff, said two sources in the banking market. “Basically, it’s affected the investment divisions and the back office. Only in the autumn of 2015, was reduced about 200 people,” said one of the interlocutors. A person close to Deutsche Bank, added that staff reductions are also concerned Depository. “It was the realization of the planned solutions, which the Bank declared over a year ago,” said the financier.
“Optimization in Russia goes according to plan. The Bank focused on the provision of global services for corporate clients”, — reported in a press-service Deutsche Bank. The official representative of the Bank also said that now the Russian division has about 1,2 thousand employees. Mostly IT specialists of the technology centre, which serve the global business of the Bank, there are about a thousand people, said the former top Manager of the Bank.
“Units working in the global capital markets and investment banking Department “moved” in London is virtually a year ago, in Russia now there are technical specialists and client managers,” says one former Deutsche Bank employees.
Deutsche Bank representative confirmed that, according to the plans, operations, global capital markets services to issuers and institutional clients in Russia, the Bank offers from their Western offices. Services for trust management of assets of wealthy customers, the Bank also focused abroad. Russia will remain the corporate banking business, including trade Finance, cash management, working capital and foreign exchange transactions, a spokesman for Deutsche Bank.
Abbreviations in the Russian office of Deutsche Bank, started after the Bank announced in 2015 to wind up in Russian investment banking business. In September 2015 the post of head of the CEO of Deutsche Bank in Russia left Joerg Bongartz, who has worked in this position for nine years.
Last summer it became known that Pavel Teplukhin would leave the post of chief Executive officer of the Bank and several employees of Deutsche Bank will go to PS Capital, controlled by brothers Alexei and Dmitry Angevine. In particular, as wrote the newspaper “Vedomosti”, there went seven managers Deutsche Bank, including Maxim Lojevsky, 2015, who headed the Department of trading operations Deutsche Bank, and the novel Sulik, head of the Moscow office of Deutsche Bank unit trading in derivative financial instruments. Member of the Board of Directors of PSB Vladislav Khokhlov has confirmed that they are currently working in P. S. Capital.
The top Manager of the American investment Bank said that the point reduction was in most foreign banks in Russia, but in contrast to the crisis of 2014 they were not of large scale. “It is rather a consequence of the global policy of banks to reduce costs. Usually this happens after the next crisis, but with a certain delay”, — said the chief investment officer at Prosperity Capital Management Alexander Branis.
Deutsche Bank announced about the optimization of the Russian division investment banking services within the framework of the revision of its geography. “This decision was made in order to simplify processes, minimize costs and risks and the efficient use of capital,” — said in an official statement. Part of the business, the Bank planned to transfer to its offices in Frankfurt and London. According to a source close to the head office of the Bank in Frankfurt-on-main, the decision to close the investment business in Russia due to sanctions and a poor monitoring system in the Moscow office. As noted by Bloomberg, internal audit the Bank has established a “systemic” failure in the procedure of internal control, designed to prevent money laundering.
In spring 2015, several media outlets published information about the Bank initiated an internal investigation in connection with the revealed questionable transactions in derivatives in London. Thanks to the so-called mirror transactions with the shares of the Bank’s customers could withdraw from Russia $10 billion In December 2015, the Bank of Russia has fined OOO “Deutsche Bank” on 300 thousand rubles for violation of rules of internal control, approved by the Moscow office. The investigation in respect of the transactions Deutsche Bank performed well as European and us regulators. Against the background of scandals were fired, several employees of Deutsche Bank, including head of trading Tim Wiswell.
The latest scandal around the Russian unit of Deutsche Bank has been associated with the manipulation of the shares of major companies in 2013-2015, the investigation is conducted by the Bank of Russia. The deal made by a former employee of Deutsche Bank Yuri healers, who, along with members of the scheme received income from manipulation to 255 million rbl. As it was established during check, the trader made the deal with their relatives who have opened accounts in the major brokerage companies. Relatives of Chilowa acquired shares using borrowed funds broker, who then for the best price on behalf of Deutsche Bank acquired the healers. Then, on behalf of the individuals exhibited the application for repurchase of the shares, which have also granted Deutsche Bank. In particular, the Bank provided a comfortable level of prices on the paper for several minutes when carried out transactions.
Deutsche Bank in recent years, is experiencing serious financial and legal problems. By the end of 2015 the Bank for the first time since 2008 was a loss of — $6.8 billion, mainly due to high costs and falling revenues from investment business. To improve the situation, the Bank adopted a global restructuring that aims to reduce the number of offices around the world. In October 2015, the Bank announced that in the framework of the strategy “2020” plans to cut 9 thousand employees and go from ten countries. In General, the reduction has anything to do with 35 thousand employees.