German banking major Deutsche Bank is planning to scale down or shut its investment banking activities in Russia following a probe into possible money-laundering scheme for Moscow clients.
As part of the move, the bank is considering slashing nearly 200 investment-banking jobs.
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However, the bank is looking to retain most of its global transaction banking, asset and wealth management and technology operations in Russia, which has about 1,300 staff.
The bank’s 19-member supervisory board is considering sweeping changes that could include scaling back or closing operations in some countries as well as restructuring the bank’s executive ranks.
These moves are part of the bank’s CEO John Cryan plans to cut costs, increase profitability and help the bank recover from a series of regulatory missteps.
As part of the overhaul, some of the senior executives will step down from the bank, while others may assume different roles. Also, chairman of the board of Deutsche Bank Russia Joerg Bongartz will relocate to Frankfurt from Moscow.
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By GlobalDataCryan added that he is planning to trim the bank’s committee of top executives by shifting some of its members into the management board and then creating a larger group of managing directors below the board level.
Additionally, Cryan has unveiled plans to exit some of the 70 countries where it operates at a supervisory board meeting.
Deutsche is currently under investigation by UK, US and German regulators over whether its Russian equities operation violated anti money-laundering laws in the country.
Deutsche told Financial Times: "We will update the market with further details on our strategy by the end of October." The bank is planning thousands of job cuts in its 99,000-strong workforce.
Cryan said: "Where we encounter?business lines that are not controlled to the standards we demand, we will exit them, even if this means closing them down."
