http://www.bloomberg.com/news/2013-12-06/deutsche-bank-to-shrink-in-commodities-as-revenue-slides.html
Deutsche Bank AG (DBK) is cutting about 200 commodities jobs, joining the world’s largest financial firms in reducing headcount to the lowest since 2009 as prices for everything from energy to metals head for the first annual drop since the recession.
Europe’s top investment bank will exit dedicated energy, agriculture, dry bulk and base metals trading and transfer its financial derivatives and precious metals desks to the fixed income and currencies division. The move will have “no material impact” on earnings, the bank said in an e-mailed statement yesterday. Total headcount in commodity units at the 10 largest banks stood at the lowest since at least 2009 as of September, according to analytics company Coalition.
Frankfurt-based Deutsche Bank is joining JPMorgan Chase & Co. (JPM) and Morgan Stanley in cutting back after investors pulled a record $34.1 billion from commodity funds globally since last December and prices tracked by Standard & Poor’s head for their first annual drop since 2008. The Federal Reserve is reviewing banks’ control of raw-material assets and regulators are demanding they set aside more reserves to cover potential losses.
“Commodities is a cyclical business,” said George Kuznetsov, the head of research at Coalition, a London-based analytics company. “Banks with a higher focus on institutional clients will scale their businesses back to key products, while larger corporate franchises will continue to be active across a broader set of products.”
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