Deutsche Bank Is Said to Close U.S. Swaps-Clearing Business

Updated on

Deutsche Bank AG is shutting down its U.S. swaps-clearing business as part of an overhaul of its investment bank to improve profitability, according to a person briefed on the decision.

The move, effective immediately, is part of the company’s broad restructuring aimed at simplifying operations and pulling back from some that are too costly under stiffer capital rules, the person said, asking not to be identified because the decision hasn’t been announced publicly. The Financial Times reported the plan earlier on Wednesday.

The Frankfurt-based firm had slid to 13th place among banks in that clearing business, according to data compiled by the U.S. Commodity Futures Trading Commission. Deutsche Bank plans to continue clearing exchange-traded derivatives such as futures in the U.S., another person familiar with the matter said.

Chief Executive Officer John Cryan is eliminating 9,000 jobs across the company to raise profitability and capital levels eroded by fines and other legal costs. The move will reduce headcount in the fixed-income division by as much as 6 percent and in the equities unit by as much as 17 percent, a person familiar with the matter said last week.

The bank’s market share in fourth-quarter trading fell to the lowest since the financial crisis as Cryan cut assets and as clients concerned about the Frankfurt-based company’s finances pulled back.

— With assistance by Matthew Leising

(Updates with U.S. futures in third paragraph.)
    Before it's here, it's on the Bloomberg Terminal. LEARN MORE