The measures will lead to a 'significant reduction' in the workforce this year.
Bloomberg News reports that Steve Eisman, the Neuberger Berman Group money manager who famously predicted the collapse of subprime mortgages before the 2008 financial crisis, recommended shorting Deutsche Bank shares.
“Deutsche Bank is a problem bank,” Eisman said in a Bloomberg Television interview in Hong Kong, The bank has “profitability issues,” and will probably have to raise capital next year, he said, without disclosing his position on the shares. A Deutsche Bank representative didn’t immediately comment on the remarks.
New CEO Christian Sewing is embarking on a sweeping overhaul of the struggling investment bank to focus more on European clients, walking away from ambitions to be a top global securities firm. Germany’s largest lender will scale back U.S. rates sales and trading, reduce the corporate finance business in the U.S. and Asia and review its global equities business. The measures will lead to a “significant reduction” in the workforce this year.
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