+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Morale at Deutsche Bank US headquarters is so low, traders are leaving to day drink at 1 PM and actively searching for other jobs in front of their bosses

Jul 3, 2019, 01:18 IST

Beer being served at Manhattan's McSorleys Old Ale HouseSarah Jacobs/Business Insider

Advertisement

Deutsche Bank's US headquarters is bracing for the worst, following recent news that the company is planning to cut up to 20,000 jobs.

According to a story published Tuesday by Bloomberg, morale at the 60 Wall Street office has reached catastrophic depths. Executives at the German bank have already started collecting brown boxes to carry their personal items in preparation of what they believe to be an imminent end.

Read more: Trump dismisses report that 'very good and highly professional' Deutsche Bank ignored warnings that his accounts could be linked to financial crime

On the trading floor, the story reports, some desks remain empty at mid-morning, while others are present but openly searching for new jobs outside of the firm, with the full knowledge and approval of their bosses. Traders have also been spotted at the bar in the middle of the day, with juniors traders seen drinking beer in a pub, while more senior employees sip cocktails at Cipriani.

Advertisement

Last month, Citigroup hired multiple long-time executives away from Deutsche Bank. This followed news this year that Deutsche was offshoring accounting jobs from Florida to India.

Bloomberg reported that Peter Selman, global head of equities, is on his way out the door and that Zia Huque, the head of Deutsche's US securities team, and Tom Patrick, head of the Americas, will likely soon follow. These departures will leave Ashely Wilson, the co-head of equities trading in the Americas, as the senior leader to help steer the bank's US operations.

Read more: New report claims Trump received around $2 billion in loans from Deutsche Bank

Other executives and top traders have already left, some after the company drastically slashed bonuses earlier this year. Bloomberg reported US managers have tried to advocate for smaller cuts to staffing over the last few years. Now, they're waiting for one big cut, all at once. The future of US equities and rates traders at the German bank in particular remains very much up in the air.

It's been a rough few months for Deutsche Bank. Its share price has cratered, and the bank is facing an investigation for potential money-laundering violations connected to White House senior advisor Jared Kushner. There was a potential for some relief via a merger with Commerzbank, but that fell through this April.

Advertisement

A 2008 purchase of municipal bonds lost the bank $1.6 billion dollars when they were unloaded in 2016. Christian Sewing, the bank's CEO since April 2018, has attempted to right the ship, but its share price is almost half of what it was when he was hired.

NOW WATCH: WATCH: Executives from Morgan Stanley, Citi, and Barclays explain how they encourage innovation within big, unwieldy banks

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article