Investigations into the major banking market manipulation scandal are still in the process of being settled and recent news reports that Deutsche Bank have made moves towards combatting money-laundering accusations by shutting down the bank’s activities in Russian investment.
The Financial Times reported that Co-CEO of Deutsche Bank, John Cryan, is expected to cut back on Russian operations, which is assumed to be a large part of the organisation, in comparison to other banks. Prior to taking up his new post, Cryan, in an internal memo, explained why exiting particular markets would be beneficial. “Where we encounter business lines that are not controlled to the standards we demand, we will exit them, even if this means closing them down,” Cryan says.
The trades that are being questioned include securities that have been bought in roubles through the bank in Moscow by Russian clients, as well as those bought by securities in western currencies through its London business.
The cut back will involve around 200 jobs being lost and could mean that the bank would stop working on an onshore basis with the investment banking market and would only serve clients there from other countries, WirtschaftsWoche reported. Alongside this, global transaction banking, asset and wealth management and technology operations in Russia would be retained.
Comments that Deutsche Bank provided highlighted that more news would be revealed once strategy was updates in October. April’s strategy informed that the bank is committed to place importance on having a “geographical footprint on key markets and cities”, the FT brought to the surface.
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