Deutsche Bank, ING Exit Some European Primary Dealership Rolesby and
Belgium doesn't reappoint Deutsche Bank as primary dealer
Nordea removed as Belgian dealer; ING drops Irish primary role
Deutsche Bank AG, Europe’s biggest investment bank, wasn’t reappointed as a primary dealer in Belgian government bonds by the nation’s debt agency.
Nordea Bank AB, the Stockholm-based lender, will also see its role as a recognized dealer end after the ministry didn’t reappoint the company, the debt agency said in a statement on Wednesday. The country has retained 13 primary dealers, including Citigroup Inc., Barclays Plc and JPMorgan Chase & Co., and seven recognized dealers.
“Deutsche Bank is a primary dealer in the vast majority of European government bond markets and has one of the highest number of primary dealerships in the industry,” Charlie Olivier, a spokesman for the Frankfurt-based lender, said in an e-mail. “We remain committed to the asset class and will continue to make markets in Belgian government bonds as well as those of other European sovereigns.”
Nordea Bank will make “appropriate adjustments” to qualify as a recognized dealer in Belgium in the future, Peder Bach, head of sales and research for Nordea Markets in Denmark, said in an e-mail.
Deutsche Bank co-Chief Executive Officer John Cryan, in charge since earlier this year, is scrapping some trading businesses as part of an effort to cut costs, boost profit and cope with stiffer capital rules. Credit Suisse Group AG, facing similar challenges, announced plans to exit primary-dealing across Europe in October.
Separately, ING Groep NV will drop out of the 18-strong list of primary dealers of Irish government debt by the end of the year, Raymond Vermeulen, a spokesman for the Dutch bank, said by phone on Wednesday. It would mark the first exit of an Irish primary dealer since 2009.
(An earlier version of this story was corrected to show that the debt agency said Deutsche Bank wasn’t reappointed and that Nordea was dropped as recognized dealer.)