It's a myth that thousands of people in trading have already lost their jobs at Deutsche Bank. When the German bank announced its second quarter results last month, it said just 900 had already gone, with more cuts to come.
Some of those spared the axe have moved to Deutsche's London-based Capital Release Unit (CRU), which is running down all the books DB wants to close. Insiders say the CRU is now handling trading books that were previously run out of the U.S. (since U.S. traders have already been let go). However, CRU traders are open to alternatives.
One of those who's resigned is understood to be Ujwal Chandra, an index exotic derivatives trader, who is said to have quit last week. Another is understood to be Bharat Garg, whom insiders say resigned over a month ago (and who is rumoured to be going to Goldman Sachs). With rival banks keen to pick-off Deutsche's top staff, others may leave too.
"London traders are being made to close the CRU books, but people are leaving," says one insider. "The auction of the derivative positions better come soon otherwise DB will need to hire people just to unwind the positions!"
Deutsche isn't commenting on the departures. Nor is it commenting on allegations that it's still compelling most traders who resign to work their notice periods instead of putting them on immediate gardening leave (both Chandra and Garg are still said to be at their desks). This runs contrary to general practice in the banking industry and - says one DB insider, risks creating conflicts of interest as traders who work for Deutsche until the day they start elsewhere could potentially use their knowledge of Deutsche's book to benefit their new employer...
Photo: Tristan Bejawn, copyright eFinancialCareers
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