Germany’s largest financial institution Deutsche Bank has announced it will pull out of all share dealing activities putting several, thousand jobs at risk, and leaving Barclays as the only major European bank still in this market.
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This comes fast on the heels of the failed merger talks with rival Commerzbank which the German government had hoped would create a national champion in the banking industry. Most of the share trading activities are in London & New York and it is not clear whether Brexit played any part in the decision. What is known is that the bank plans to shed 74,000 from its global workforce by 2022, reflecting the changing nature of banking with peer to peer lending eroding traditional lending and the rise of cryptocurrencies led now by Facebook posing a further disruptor to the old banking model.
Outside of Barclays, the world of investment banking will now be US-dominated with Goldman Sachs, JP Morgan Chase and Morgan Stanley likely to expand their operations to take up any free-market share.
