The director of Deutsche Bank has reprimanded two of his directors, who conducted £ 1,500 lawsuits while colleagues were panicking over mass layoffs.
Christian Sewing revealed that he personally called the banker couple to punish them for ordering tailors from the more expensive Fielding & Nicholson to headquarters in London on the day the company announced 18,000 job losses.
In a phone call that the bank boss said the duo & # 39; won't forget & # 39 ;, he dressed them because they behaved in a way that & # 39; in no way matches our values & # 39 ;.
Ian Fielding-Calcutt and Alex Riley, from Fielding & Nicholson Tailoring, were photographed with pack bags from the office after measuring directors at the firm
Tailor Mr Riley posing in a suit. He later tweeted about arriving at the Deutsche Bank offices
Christian Sewing (photo) revealed that he personally called the banker couple to punish them for ordering tailors from the better Fielding & Nicholson to headquarters in London on the day the company announced 18,000 job losses
# I cannot understand that someone would call tailors to fit on Monday. That same day we had to tell a lot of stock traders & colleagues that they had to leave, & he said to the German newspaper Handelsblatt.
Sources estimate that 3,200 people could lose their jobs at the London office, with an IT contractor claiming 100 people were fired from a single floor.
Ian Fielding-Calcutt and Alex Riley, who work for Fielding & Nicholson Tailoring, were among those who left the office on Monday while carrying various pack bags.
It was thought that they were among the hundreds of employees leaving the office grabbing personal belongings and redundancy envelopes, and their image was being sent all over the world.
Many believed that a carrier bag adorned with the word & # 39; Bitcoins & # 39; was in possession of one of the men to be a satirical excavation at the German company by a fired banker.
It has now become apparent that the two men were in fact tailors of one of the most prominent tailor-made clothing suppliers, Fielding & Nicholson Tailoring.
Alex Riley shared photos of his & # 39; Bitcoins & # 39; s bag to both JP Morgan (left) and Morgan Stanley (right) after being accused of using them to hide Deutsche's job losses
But it has now become apparent that the two men were in fact tailors of one of the most prominent custom-made clothing producers.
Mr. Fielding-Calcutt, owner of the company, told the website Financial news who revealed the story: & # 39; It is a coincidence that we came out of the building when others were fired.
& # 39; The assumption was that we fired one of the bankers, but we were there to fit suits for senior staff. & # 39;
& # 39; Our timing wasn't great & # 39 ;, Mr. Fielding-Calcutt added. & # 39; I think many of the people who were fired were traders of some sort, who didn't wear suits, so we just continued with our customers who were clearly not affected by the cuts. & # 39;
A wave of job losses now seems to hit Frankfurt, where recent changes in labor laws that make it easier to dismiss people earning € 234,000 (£ 210k) can prompt the bank to attract higher staff.
A man leaves the Deutsche Bank building in central London with some possessions on Monday
A city worker outside the Balls Brothers wine bar, in central London, with a white envelope with presumably a notice of resignation from Deutsche Bank. The bank has started clearing 18,000 jobs
A number of people were seen leaving 60 Wall Street Deutch Bank with white envelopes that are reported to be their resignation messages
People left Deutsche Bank's headquarters in Manhattan with some of their assets after news that the global banking giant will let thousands of employees go because of a major restructuring at the German bank
On Monday, the bank with its headquarters in Frankfurt said that the massive layoffs would reduce annual costs by £ 5.4 billion.
The 91,500 employees worldwide will be shortened by just over 20 percent, up to 74,000, in an unprecedented round for Deutsche.
The company fired workers in Sydney, Hong Kong and the Asia-Pacific region on Monday morning because it launched one of the largest restructuring of its investment bank since the financial crash.
Meanwhile, a stock professional at the New York office told eFinancial news: & # 39; 9:30 am is when most people in my division have been asked to report to the auditorium that they will be fired. & # 39;
The staff in London were reportedly only a few hours after Deutsche Bank announced the revision that they had until 11 am to pack their things.
A man who was told that his door pass would stop working within a few hours, told The Telegraph's bank editor, Lucy Burton: & I am trying to straighten my head & # 39 ;.
Deutsche has insisted that its retail employees in Germany – where labor law is much stricter – should not be fired against their will until mid-2021.
City dwellers hugged outside the Balls Brothers wine bar near the Deutsche officers, where the trade began this afternoon in the midst of job losses. It is unclear whether those photos were employees of the bank
A man carries a box like leaves from the offices of the German company Deutsche Bank in London
Despite the loss of jobs in London, the bank confirmed that it was still planning to move to its headquarters in the Moorgate area of the city, once the current development was completed in 2023.
In London, The Guardian reported how 100 people on the fourth floor had been fired, while some staff members were seen leaving the office in tears.
Chief executive Christian Sewing, who earns £ 6million a year in his role, said that work cuts have been the most difficult and painful part of our decision making, since people and their destiny are very important to us are & # 39 ;.
How Frankfurt can be in addition to a job reduction, but retail employees are protected by strict German labor laws
Frankfurt appears to be the next in line for job losses when Deutsche Bank announced it would scrap its global equity business.
Employees of the German retail bank will be safe against their will to be fired until 2021 thanks to stricter labor laws in the country.
But new laws made it easier to enroll people who earn more than € 234,000 (£ 210k), putting senior citizens at risk.
& # 39; It's the calm before the storm & # 39 ;, a Frankfurt director told efinancialcareers. & # 39; We expect Asia, the United States and London to be the first. & # 39;
The cutback of the bank – which paid billions in fines and settlements after the 2008 financial crash, when Lehman Brothers failed – is coming, the British economy is standing still.
The PMI of the data organization Markit follows the private sector and reported shrinking business activities in June.
Chris Williamson, economist at IHS Markit, told The Financial Times: & # 39; The latest downturn differs from that in 2016, as it has followed a gradual weakening of economic growth rather than a sudden and short collapse in output after the & # 39; shock & # 39; & # 39; referendum result & # 39 ;.
Deutsche Bank said it would drop its stock sales and trading unit as part of a plan to end more volatile investment banking activities.
It said it would reduce about a quarter of its total cost base through steps such as dropping the stock trading from the investment bank.
It would also be phasing out its division focused on fixed-income investments.
The bank would not say where the cuts would fall, but many of its investment banking activities are conducted in Wall Street and London.
It will also be phasing out its division focused on fixed-income investments. By doing that, the bank must focus on areas with more stable profits, such as serving business customers.
People are walking outside the Deutsche Bank office in London that has confirmed plans to cut jobs
A city worker outside the Balls Brothers wine bar is holding a white envelope while talking to a colleague
The bank would also create a separate unit to dispose of investments that are less profitable or no longer fit into its strategy.
The bank said it did not expect to have to raise additional capital from shareholders.
Monday Mr. Sewing said: “Today we have announced the most fundamental transformation of Deutsche Bank in decades.
& # 39; We are tackling what is needed to unleash our true potential: our business model, costs, capital and management team.
& # 39; We build on our strengths. This is a restart for Deutsche Bank – for the long-term benefit of our customers, employees, investors and society. & # 39;
The move follows the failure of merger talks with German competitor Commerzbank.
Deutsche Bank said the combination would not make sense, but that left open the question of what strategy the bank could follow to make its activities leaner and more profitable.
Deutsche Bank has been struggling for years with regulatory fines and fines, weak profits, high costs and a falling stock price.
The bank went on for three consecutive years without making an annual profit before recording a positive profit for 2018.
Why is Deutsche Bank struggling? How the newest turmoil comes after years of pain for the institution and its investors
People cuddle outside the Balls Brothers bar, where some Deutsche Bank employees went to this afternoon. It is unclear whether the persons depicted were employed by the bank
By Simon Lambert for this is money
Deutsche Bank's huge cuts are the result of many years of pain for the bank and its investors.
After driving the years of financial prosperity from 1999 to 2007 – as planned to become the Goldman Sachs of Europe – Deutsche Bank has suffered largely since the financial crisis hit.
In the aftermath of the crisis, stricter rules were introduced for banks, requiring them to hold more capital, to rely less on debt and to do things safer, which made it difficult for Deutsche.
Deutsche had grown enormously after the acquisition of the American Bankers Trust in 1999, with the investment banking activities being considerably expanded and considered as the largest bank in the world for a short period in 2007.
However, much of that expansion was driven by debt, leaving Deutsche and also the most leveraged bank in the world.
Deutsche was not set as low by bad bets during the financial crisis as many of its giant rivals, but it was hit hard when regulators responded to the crisis by demanding that banks hold more capital. In the meantime, investors shied away from the lucrative but risky transactions that had brought so much money to global mega banks.
Deutsche Bank repeatedly had to raise money from investors to meet capital requirements, with £ 30 billion in equity raised in the last ten years, and its share price dropped from nearly € 110 at its peak to around € 7.
After the financial crisis, the bank has scaled up its stock trading division in an effort to make more money, but that has not paid off and it will suffer from the cuts.
Along the way there was a € 2.5 billion Libor scandal – levied for manipulating the most important global interest rate – and a € 7.2 billion fine for mis-sold US-backed securities.
Deutsche Bank's share lost more than half its value in 2018 and it has only made one annual profit in the last four years, in 2018.
A planned merger with fellow German lender Commerzbank collapsed earlier this year and while the scale of the cuts is a surprise – with 18,000 jobs hacked from its 91,500 employees – the arrival of a radical plan was not.
Restructuring costs of € 3 billion will push Deutsche Bank to a loss of € 2.8 billion for the second quarter of 2019, while a bad bank with € 74 billion in legacy activities aims to remove the bank from the past.
Deutsche will ask for a temporarily lower level of core tier 1 capital – an important financial health measure – so that it can finance the restructuring of € 7.4 billion without asking investors for more cash.
Boss Christian Sewing hopes that this plan will invoke time in the era when Deutsche tried to crack Wall Street, investors will hope to finally earn more money and increase profit margins, and regulators hope it will be one of the world's # 39; famous benches. better financial basis.
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