Fears at Deutsche Bank ahead of BNP deal, as ex-colleagues land on their feet in NY
Is it so bad to lose your job at Deutsche Bank? 900 people were cut in the first round of layoffs in July, mostly in equities. With time, some are resurfacing in new, and sometimes better, jobs. Meanwhile, those who remain are understood to be concerned about the implications of the deal with BNP Paribas.
Deutsche Bank's rehoused U.S. equities staff include Joseph Monohan, a DB sales trader who is understood to be joining Goldman Sachs. Monohan's last official day at Deutsche Bank was yesterday, according to his FINRA profile. There's also John Panichi, another equities sales trader, who is still employed by Deutsche but is said to be joining Mizuho, or there's Robert Lippert, who left Deutsche Bank after seven years and joined Bank of America on 19 August as a director in electronic equities. There's Jayson Wahlstrom, an equities sales trader who only joined Deutsche eight months ago and is now said to be going to Guggenheim. There's Rob McEwan, a former director in trading at Deutsche Bank, who landed this month as a managing director at Wells Fargo Securities. And then there's Jo Passaro, the former co-head U.S. ECM Syndicate at Deutsche Bank, who's said to be becoming co-head of capital markets at BTIG.
Leaving Deutsche is clearly not a career-destroying move.
Meanwhile, there are rumblings from inside the bank in New York about the potential ramifications of the deal with BNP Paribas.
Reuters reports today that 800 people are being transferred as part of a preliminary agreement to transfer Deutsche's prime brokerage business to the French bank. However, BNP is understood to be purchasing both Deutsche's prime brokerage and its electronic equities businesses, with the deal to be finalized this year. And ahead of the deal being finalized, electronic equities professionals at the German bank are said to be worried.
"The BNP guys seem to be presuming they will be the heads of the business," says one DB insider. "Everyone's in limbo and no one knows what to expect."
Deutsche Bank's U.S. electronic trading business is run by Ryan O'Sullivan, who joined the bank in 2015 after periods at hedge funds TriOaks Capital Management and Citadel. O'Sullivan is still at Deutsche, according to his FINRA registration, and insiders said he's promised to see the deal through to completion. Some in the team are understood to have offered to resign in return for a 'package', but this has not been forthcoming.
Deutsche Bank declined to comment.
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