FROM EIR DAILY ALERT
Deutsche Bank To Fire Thousands—LaRouche Was Right!
May 24, 2018 (EIRNS)—Deutsche Bank announced today that it is the slashing “well over” 7,000 jobs—some say 10,000—of its current 97,000 employees, and its corporate and investment bank is expected to lose 25% of its employees, mostly, according to Associated Press, in London and New York.
More will come out of the bank’s annual general meeting held today, where an attempt to oust Deutsche Bank’s Chairman Paul Achleitner, failed by a 90-9% vote to keep him.
However, the reorganizing of Deutsche Bank brings up the question raised by EIR Founding Editor Lyndon LaRouche, who called for the bank to return to the sound commercial bank principles of its martyred Chairman Alfred Herrhausen, who was assassinated on Nov. 30, 1989, rather than continue the failed universal casino banking model.
That very question exploded last month, when Deutsche Bank captured financial headlines April 9, when the bank’s board officially dumped its British CEO John Cryan, and today announced massive layoffs as it downsizes it toxic investment banking division.
Cryan was immediately replaced by Christian Sewing, who has been with the bank since 1989, and who indicated he was downsizing the investment bank side of the business.
“The priority is to leverage our strengths and to allocate our investments accordingly. And at the same time, we will look to free up capacity for growth by pulling back from those areas where we are not sufficiently profitable,”
Sewing told the Guardian April 9.
“We will continue our activity as an investment and corporate bank and we will remain international but we must concentrate on what we really know well.”
The Guardian also quoted Octavio Marenzi of the consultancy Opimas that,
“We can expect a much stronger emphasis on the domestic German market, with a focus on commercial and retail banking, and wealth management. It looks like the board of directors is capitulating on the investment banking front.”
He further warned,
“this will hit Deutsche Bank’s London presence particularly hard, where the bulk of its investment banking activity is based. We expect to see those activities right-sized or sold off, with attendant headcount reductions.”
