Deutsche Bank will close its Russian banking and securities businesses as co-CEO John Cryan presses ahead with a plan to exit some countries and the lender grapples with a probe into alleged money laundering at its Moscow office.
Bloomberg News reports that Deutsche Bank is planning to cut about 200 jobs as part of the closure, according to people with knowledge of the matter, who asked not to be identified because the information is private. About 200 people will remain in transaction banking and 900 in IT functions, one person said. A spokesman in Moscow declined to comment on job cuts.
'Deutsche Bank has to decide what it wants to do and whether it wants to be in countries that have this kind of cultural risk of money laundering', said Dirk Becker, an analyst at Kepler Cheuvreux who has a hold recommendation on Deutsche Bank shares. 'The profits just don’t justify the kind of risk that they’re exposed to'.
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