Deutsche Bank Launches New Global Markets Unit, Reorganizes Investment Bank

The new global capital markets division will be jointly headed by Alexander von zur Muehlen and Mark Fedorcik.

Deutsche Bank has continued to tinker with its operations in the midst of a multi-year restructuring process that has kept Germany’s largest lender on its toes. Weakened by a number of debilitating settlements and profit woes, the group has been one of the most active banks in terms of personnel moves and cost-cutting measures. Its latest initiative will see the reorganization of its investment banking structure, including partitioned roles for its co-heads of unit.

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Marcus Schenck and Garth Ritchie were previously promoted to lead Deutsche Bank’s reorganized corporate and investment banking operations earlier this year. However, they have now disclosed a split in their respective duties in an effort to make its business more efficient, as well as the creation of a new global markets division at the lender.

Deutsche Bank will continue its ‘lean and mean’ strategy with the reorganization, this time opting to reduce its bureaucracy via the simplification of its investment banking unit – the goal will be to cut costs, not unlike several of its other recently announced moves and tranches of layoffs, which Deutsche Bank is hoping can improve its yearly outlook.

Mr. Schenck will maintain a focus on clients, overseeing corporate finance, global capital markets, and the bank’s institutional client group. Mr. Ritchie will in turn concentrate on Deutsche Bank’s products and processes, supervising equities, fixed income and currencies, global transaction banking, electronic trading, listed derivatives and clearing, research and the division’s technology and operations – the changes are slated to take effect on July 1, 2017.

Transatlantic Management

The two individuals will retain a large amount on their plates, given the latitude of their respective areas of coverage and business at Deutsche Bank, which despite taking a hit over the past year remains one of the industry’s largest. In light of this partition, Deutsche Bank will also be launching a new global capital markets division that in turn will be jointly headed by Alexander von zur Muehlen in Frankfurt and Mark Fedorcik in New York.

It remains to be seen whether the structure presented from Deutsche Bank will ultimately help allay its cost concerns, however the group is coming off a successful Q1 earnings that saw it largely reverse many investors’ fears heading into 2017. The group is also simultaneously grappling with a unique settlement plan with ex-managers in a bid for immunity.

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