Deutsche said considering closing investment banking unit

The bank has announced its intention to exit certain countries but not yet said which.

Cryan, who was promoted to his post in July, will be replaced on the supervisory board by former Standard Chartered finance director Richard Meddings, Deutsche Bank said in a statement released on Monday. Concern about potential money-laundering by Russian clients, through equity trades handled by Deutsche Bank, has urged an internal review and investigations by European and US regulators, they said. The people said the trades under review were worth billions of dollars.

Details of the strategic plan being implemented under new Chief Executive John Cryan are expected by the end of October. Back-office jobs in the group’s large investment banking division will be concentrated in London, New York and Frankfurt, the source said.

Additionally, Deutsche Bank will close most of its operations in Russian Federation, except the Global Transaction Banking division, sources told Reuters. When taking over as co-CEO with Juergen Fitschen, he inherited a strategy to boost returns by lowering expenses by about 15 per cent by 2020 and shrinking assets at the investment bank by as much as 17 per cent through 2018. The bank is planning thousands of job cuts in its 99,000-strong workforce but declined to comment on Russia’s plan.

The company has not even closely recovered to pre-crisis market cap and is in the midst of a crisis, proven by a 39% vote against current management at its most recent AGM in May.