Deutsche has adopted divestment as a turnaround strategy. In its
attempt to swim back on tired waters to its core business, (but are not Germans proponents of Universal banking?) the bank seeks to shed businesses that are
risky. This is understandable as a strategy but why does it have to be that Deutsche lets go
of $50 billion of high net worth and ultra high net worth USA customers to Raymond
James? Deutsche Bank had agreed to sell its U.S. private client services unit to
Florida based Raymond James in an effort , presumably to save on costs and hive
off non-core businesses.
What is surprising is that Deutsche is retracing from USA which is the fastest growing and perhaps the
wealthiest of advanced economies. (California, 130
billionaires; New York City about 75
billionaires; Florida about 77 billionaires), One can understand if Deutsche
scales back from the
'high risk' economies like Russia but its decision to
selectively withdraw from USA customers
is enigmatic. What is banking without the wealthy?
Or is it that in Deutsche's haben (credit) and soll (debit) corridors, fear is the key?
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