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Deutsche Bank tells fixed income traders that they'll keep jobs
[LONDON] Deutsche Bank AG fixed-income head Ram Nayak assured staff they will keep their jobs at his business even as the lender cuts 18,000 positions in a sweeping overhaul, according to people familiar with the matter.
The bank's move to "resize" debt trading operations won't lead to dismissals, Mr Nayak told colleagues on a conference call on Monday, the people said, asking not to be identified as the matter isn't public. A day earlier, Deutsche Bank had announced plans to exit equity sales and trading and huge job-reduction plans.
Fixed income has been a traditional strength of Deutsche Bank's investment banking activities. The lender has earmarked more than 20 per cent of its balance sheet to be wound down or sold to free up capital to invest in more profitable businesses. While the equities unit accounts for the majority of assets to be moved to the new capital release unit, the lender is also hiving off long-dated assets in its interest rates business as well as securitised bonds.
Deutsche Bank doesn't disclose how many people work for its equity and fixed income businesses. The wider corporate and investment bank division employed 38,305 people at the end of March, of which 17,117 were in front-office positions such as traders and salespeople.
Deutsche Bank generated 5.36 billion euros of revenue from dealing in bonds and currencies last year, making the business its second-largest source of earnings. Stock trading supplied less than half that amount.
Mr Nayak is taking over the fixed income and currency business, reporting directly into Chief Executive Officer Christian Sewing. For Mr Nayak, the move marks something of a comeback: he was replaced by John Pipilis last year as head of fixed-income trading. Pipilis is set to leave.