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Deutsche Bank ‘Beyond Repair’ as Trading Drops, Autonomous Says

  • German firm’s technology a ‘clear laggard’ versus JPMorgan
  • Investors are ‘inevitably’ questioning bank’s leadership
The twin tower skyscraper headquarter offices of Deutsche Bank AG stand in Frankfurt.

The twin tower skyscraper headquarter offices of Deutsche Bank AG stand in Frankfurt.

Photographer: Krisztian Bocsi/Bloomberg

Deutsche Bank AG may be “beyond repair” unless there’s a “miracle” boom at its once-mighty bond-trading business, according to Autonomous Research LLP.

The firm’s “faltering” fixed-income and currency markets franchise, which generates about a quarter of profits, can no longer be counted on to drive earnings, Autonomous co-founder Stuart Graham said in a Sept. 18 note. Adding to the German lender’s problems, more than a decade of underinvestment in technology has left it a “clear laggard” to rivals like JPMorgan Chase & Co., while misconduct scandals have tarnished its reputation with clients.