Thursday, December 3, 2015

Deutsche Bank: Fear is the key?

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?



This blog recommends no investment; all views expressed are without any risk or responsibility. 

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