Deutsche Bank Credit Traders Said to Leave on Cost Cuts
Three Deutsche Bank AG (DBK) credit traders including Brad Visokey and a debt salesman left the firm this week as Europe’s biggest bank by assets pledged to cut costs and review pay practices amid higher capital requirements.
Visokey, who traded credit-default swaps tied to lenders and automakers, and Robert Lam, who handled swaps on insurance companies, left the bank’s New York office yesterday, said two people familiar with the matter who asked not to identified because they haven’t been announced. Christopher Park, a vice president in credit trading, and James Bertoni, an associate salesman, also left, people familiar with those moves said.
The departures follow at least 11 other exits by Deutsche Bank debt traders in New York since the beginning of 2011 as the lender caps cash bonuses, reduces staff and boosts capital reserves. Nicholas Pappas, the former co-head of flow credit trading in North America, left last week, and Antoine Cornut, who oversaw flow-credit trading in the Americas and Europe, departed in July.
Visokey, a director who also traded bank and auto company bonds, and Lam, an associate, declined to comment, as did Renee Calabro, a Deutsche Bank spokeswoman.
Deutsche Bank will cut costs by 4.5 billion euros ($5.8 billion) as it aims to increase its after-tax return on equity to at least 12 percent by 2015, it said today in a statement. The Frankfurt-based lender said in July that it will eliminate 1,900 jobs, including 1,500 at the investment bank and support areas, by year-end as Chief Executive Officers Anshu Jain and Juergen Fitschen face declining revenue from the unit.
The lender also said today that it plans to cut about 100 billion euros of risk-weighted assets from its investment bank by 2015 as it tries to comply with the so-called Basel III capital rules established by global regulators. Since the financial crisis of 2008, capital requirements on some credit products have been increased by the regulators.
Visokey joined Deutsche Bank in 2004 from Greenwich Capital Markets Inc., according to records maintained by the Financial Industry Regulatory Authority. Lam started in 2008, the records show.
To contact the reporters on this story: Lisa Abramowicz in New York at firstname.lastname@example.org; Stephanie Ruhle in New York at email@example.com; Christine Harper in New York at firstname.lastname@example.org