Some say more radical measures are needed.
Bloomberg News reports that Christian Sewing was barely two weeks into his role as CEO of Deutsche Bank when he unveiled the outlines of a yet another turnaround plan for the bank in April. Now shareholders say it’s time to flesh out the details.
Four of the bank’s top investors want the CEO to provide specifics on where he wants to scale back the investment bank when he reports second-quarter earnings on Wednesday. Two of those said more radical measures than Sewing has proposed are needed. The investors asked not to be identified in discussing their views.
“The crucial question for investors is just how deep of a restructuring Deutsche Bank needs to achieve sustainable profitability,” said Alexandra Annecke, a fund manager at Union Investment, which owns about 0.15 percent in the bank, according to data compiled by Bloomberg.
Sewing’s restructuring plan - the fourth in three years for Deutsche Bank - is centered on more job cuts and reductions to the investment bank. Some details have trickled in: At least 7,000 roles will be eliminated, with a focus on the U.S. operations and the global equities business. At the same time, Sewing confirmed his commitment to the investment bank, saying it will always account for at least half of the bank’s revenue.
Hit the link below to access the complete Bloomberg News article: