The Chief Executive Officer (CEO) for Deutsche Bank’s Latin America operations, Bernardo Parnes, is planning to depart the bank, according to coverage by Bloomberg that referenced a source familiar with the matter who shared plans of the senior departure that will be soon announced by the bank.
Mr. Parnes joined Deutsche Bank in 2008 as the CEO for Brazil, after working as CEO for Merrill Lynch and Banco Bradesco BBI SA in the country, and having served as a wealth manager for billionaire banking magnate Joseph Safra. The Bloomberg article added that Parnes declined to comment on the reports of him leaving. The news follows days after Deutsche Bank shareholders rejected an executive remuneration deal, as reported by Finance Magnates.
Departure amid exit plans in region
The German-headquartered bank is planning to exit Argentina and Mexico as it exits key parts of Latin America, and it is planning to cut half the workforce in Brazil (over 300 staff as of the end of 2015) as its trading operations are moved to a different location – according to multiple sources – as per the Bloomberg article.
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The news also follows Moody’s announcement that it cut Deutsche Bank’s senior unsecured debt rating to Baa 2, two notches above junk territory, citing the bank’s weak financial performance and low-interest rates and global financial uncertainty that would weigh on results. Moody’s also downgraded the bank’s long-term deposit rating down one notch to A3, as per coverage by the Wall Street Journal (WSJ).
Deutsche Bank revealed plans last October to cut nearly 26,000 positions globally over a two-year period and plans to shut its Chili, Peru, and Uruguay operations as per the article. The bank’s global transaction-banking business in Brazil, including cash management, and securities services, will remain, as explained to Bloomberg by a person familiar with the developments.