It's Tough For The Old Deutsche Bank To Learn New Tricks

Deutsche Bank's radical transformation is proving painful

For many Wall Streeters, this holiday season will be joyful indeed. The superb 1996 performance of the U.S. stock market means fat bonus checks. But at Deutsche Bank North America's New York headquarters, the mood is grim. Last weekend, its 40 relationship managers, whose job is to nurture long-term ties with corporate clients, presented their 1997 business plans to senior management. All but one or two were rejected, and their authors were told to set higher goals for equity and fixed-income trading and sales while scaling back on commercial banking. The corridors are rife with rumors of massive layoffs by Christmas. "There are definitely people who are not very happy," says a recently departed senior executive.

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