Deutsche Bank Said to Cut N.Y. Traders in Bond Unit Pullbackby
Deutsche Bank AG, which said it’s planning to reduce its workforce by 26,000 to focus on its most profitable businesses, cut four people in its securitized-debt group in New York, according to people with knowledge of the matter.
Two salesmen and two traders in the bank’s New York office were let go Tuesday, according to people with knowledge of the matter. They were commercial mortgage-bond trader Russell McKay, residential mortgage-bond trader Brian Clark, and structured-products salesmen Patrick Niro and Alexander Maldonado, the person said.
The moves are part of a sweeping strategy to “cut severely” the bank’s engagement in capital-intensive global markets, co-Chief Executive Officer John Cryan said in a meeting with investors and analysts on Oct. 29.
The bank is under shareholder pressure to reduce costs and improve the bank’s capital ratios. It recently slated trading of U.S. government-backed residential mortgage bonds for a complete exit, for example, alongside reductions to other parts of its securitized debt business, according to a presentation at the event.
Niro, who was a director, and Clark, who was a vice president, declined to comment when reached on their mobile phones Wednesday. Maldonado, who was a director, and McKay, who was a vice president, didn’t respond to phone messages seeking comment. Deutsche spokeswoman Oksana Poltavets declined to comment.
Deutsche Bank said last month that it plans to cut its workforce over the next several years in order to focus on customers who generate the most revenue. The firm also announced management changes that included the departure of Colin Fan, the former head of trading.
The bank’s securitized products unit has been stung recently with other losses of salesmen and traders. At least four individuals were recently terminated by the bank amid government investigations into misconduct involving commercial mortgage-backed securities transactions. A fifth was said to come under new investigation for separate claims, people familiar with the matter said Tuesday.