Deutsche Bank (DB – Get Report) stock closed down by 4.53% to $28.45 on heavy trading volume on Friday, after the company announced it would close its Corporate Banking and Securities business in Russian Federation .
Two people familiar with the bank said it planned to cut around 200 jobs in Russian Federation from a current total of around 1,300. The Company diversifies its activities into three group divisions: Corporate & Investment Bank (FRA:DBK); Private Clients and Asset Management (PCAM), and Corporate Investments (CI). GTB delivers services and commercial banking products to financial institutions and corporate clients.
As detailed by ValueWalk, the U.S. Department of Justice is investigating DB for yet another serious violation of USA law, for aiding and abetting Russian oligarchs in a complex money laundering scheme. The bank’s advantage administration business will likewise move some of its back office works seaward.
The DOJ’s new criminal investigation of the German bank involves so-called mirror trades, whereby traders apparently permitted Russian clients to transfer money overseas without properly alerting authorities. Deutsche is in the midst of a sweeping programme to shrink its global footprint to a regional one under new Chief Executive John Cryan.
Deutsche was asked a year ago by Russia’s national bank about the exchanges of some Russian customers. The bank has had poor profitability in recent years and has faced several scandals that have led to huge fines and hurt its reputation. Equinet Institutional Services set a €30.00 ($34.09) price objective on shares of Deutsche Bank AG and gave the company a neutral rating in a research report on Tuesday.
Germany’s biggest lender said in May that it would shut operations in as many as 10 countries, as part of a plan to reduce its adjusted costs by about 15 percent by 2020.