Waiting for a miracle ?
The firm’s “faltering” fixed-income and currency markets franchise, which generates about a quarter of profits, can no longer be counted on to drive earnings, Autonomous co-founder Stuart Graham said in a September 18 note. Adding to the bank’s problems, more than a decade of under-investment in technology has left it a “clear laggard” to rivals like JPMorgan Chase, while misconduct scandals have tarnished its reputation with clients.
“When we consider the basics of what makes a bank a winner - trust (or brand), balance-sheet muscle, technology and its people - Deutsche looks to be in very bad shape,” Graham said. “In such situations it is inevitable that some investors start to question whether the bank has the right leadership.”
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