I'm a senior banker at Deutsche Bank. Here's why I'm worried about its bond business. - Business Insider

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I work at Deutsche Bank. Here's what's going on.

This story requires our BI Prime membership. To read the full article,I'm a senior banker at Deutsche Bank. Robert James is my pen name.

While feedback to the CEO of the restructure may have been positive, the real feedback is in clients trading with the bank. And that feedback has not been positive.Deutsche Bank stock fell over 10% on the release of its third quarter earnings last week. It has largely recovered since then, but is still underperforming the European bank aggregate this year. And over the past three years, Deutche Bank's stock has also lost over a third of its value.

The press release around the earnings report was unironically titled "transformation on track." But the reality is that over the next year or so, as the restructuring progresses, DB is likely to resemble a building site. Various one-off charges will limit any visibility of the type of investment bank that will eventually emerge.

But it is natural to wonder whether the recent restructuring/turnover of staff has impacted the franchise on a longer term basis. This could be via lower client footprint or key staff leaving, which reduces the banks trading edge. So, while feedback to the CEO of the restructure may have been positive, the real feedback is in clients trading with the bank. And that feedback has not been positive.

 

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Great insightful piece by Macro Hive. Well done guys. macro DeutscheBank

mjoehlerich Yep crunch 2 is on it's Way !

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