A deal that will see BNP Paribas assuming control of a sizeable proportion of Deutsche Bank’s prime brokerage business may lead to 800 employees jumping ship from the German bank.
According to Reuters, a part of the deal will involve the banking executives transferring from Deutsche Bank to BNP Paribas.
This could be good news for both parties – as well as the 800 people not losing their jobs.
Deutsche Bank has been attempting to shed 18,000 workers as it undergoes a massive shift in its set of operations. To try and return to profitability, the German firm has effectively ditched its investment banking business.
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No severance pay
Its prime brokerage division was an important part of that business, serving clients with assets worth approximately $200 billion.
BNP Paribas is hoping to take on the bulk of the group’s prime broker clients, though British bank Barclays is also trying to nab $20 billion worth of business from the Deutsche Bank fallout.
If the 800 employees do transfer to BNP Paribas, it will mean that Deutsche Bank will be saved from having to pay out some hefty severance packages. The French bank will also gain the insights of the people that have been working on the business and the clients they serve.
According to Reuters, most of the employees are based in London and New York.