There was a time when Deutsche Bank was seen as a special place to work in New York City. Writing on this site a few years ago, a former DB banker in the United States remembered how great it was. Because Deutsche was a less established bank in the Americas, he said there was a real culture of camaraderie: “The harder things got, the more we felt compelled to stay. We didn’t want to disappoint our friends; we wanted to fight together. “.
Then Deutsche Bank was restructured. Jobs were reduced and the unit of sale and negotiation of equity was abandoned. 30% of jobs and costs were reduced in America between 2007 and 2020 and colleagues followed separate paths.
Nearly three years later, however, DB America seems to be regaining its American mojo.
Led by Christiana Riley, a former Deutsche investment banker and former chief financial officer of the investment bank, Deutsche’s US operation this week moved to its new office at the Time Warner Center (now renamed Deutsche Bank Center) in Columbus Circle, Manhattan. The accounts of Riley and his senior American colleagues on LinkedIn have been filled with brilliant reviews of the new facilities.
“T“The client space is phenomenal,” said Drew Goldman, head of investment banking advice and coverage, who among his superlatives to describe the new building is also “mind-boggling”. “It’s so good to be back on the road watching customers,” he said. “And I can’t wait to welcome them to Deutsche Bank In the middle “.
While Goldman’s comments are some of the most outspoken, they are not atypical of the recognitions Deutsche’s student has in the building, which in fact looks quite elegant with terraces full of bushes and views over Central Park. With the price of Deutsche shares around 70% in the last year, the loyalty of staff worldwide since 2012 and 76% of staff approving the strategy, the hope will be that the new building give Deutsche a new impetus in the United States. as things return to a kind of normalcy.
Deutsche Bank declined to comment on this article, but the bank’s experts noted the bank’s success in developing SPACS and its focus on its key coverage sectors (healthcare, industrial, consumer, FIG, TMT , real estate, games and leisure, and financial sponsors) as proof of its robustness in the US. Speaking to “Investor Deep Dive” last December, Riley said the US DB was returning to a growth trajectory and was “smaller simpler and stronger” after its plum and shine. Areas of focus this year in the U.S. will include “controlled credit expansion” to sectors such as health, industry, consumer and TMT, Riley said. There will be investments in automation and increased controls (previously a weakness in the DB Americas business), and there will be a growing focus on sustainable financing.
There have already been some hirings, but not many. Deutsche appointed Richard Robinson, a veteran of M&A, as CEO and vice president of its global industrial group earlier this month. He recruited Macquarie’s Sean McCarthy as TMT’s banking physician in January, when he also added Barclays ’Sandra Frenz as head of the American transformation. Last December he hired Chris Leonard of Barclays as head of U.S. sales and tax negotiation.
However, despite all the bonhomies generated by the new building, Deutsche’s U.S. business still has a rising momentum. According to Dealogic, it ranked 9th in origin and advice in the Americas in the first quarter of 2021, compared to 10th in the first quarter of 2020. Alongside the departures, there have been departures: Guhao Wu, the head of New York-based global electronics. equity research, went to BNP Paribas in March. Deutsche ECM veterans and SPAC bankers Andrew Yaeger and Paul Stowell went to Jefferies this May.
With costs still low at Deutsche, it is unclear how much freedom the U.S. business will have to contract its path to growth. The reality is probably not too great, which may make the elevation of the bright new office even more important for DB’s American success.
Photo of Jon Sailer at Unsplash
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