Deutsche Bank AG on Wednesday reorganized its sales and trading units as part of a broader restructuring announced early last month.
The Frankfurt banking company said it will split its global markets group into three units but leave its global equity division as a stand-alone unit. Deutsche Bank will break out its debt capital markets, and leveraged finance and loan products businesses from under the global markets umbrella.
The refined global markets group, meanwhile, will continue to comprise foreign exchange trading, sales and research, derivatives, money markets, and certain Treasuries, commodities, emerging markets, securitization, and exchange services, the banking company said.
Deutsche Bank had originally planned to announce a broad restructuring for early next month, but executives announced the sales and trading changes early because of the unexpected death of Edson Mitchell, who had headed up all global markets and global equities functions. Mr. Mitchell died in plane crash on Dec. 22.
In February, Deutsche Bank is expected to consolidate the banks five divisions into two units, to concentrate on investment banking and asset management. A bank spokesman said that management decided to reveal the appointments early to reassure people internally and externally that the sales division is stable. The first three months of the year are crucial for sales and trading. They set a precedent for the rest of the year, he said.
Deutsche Bank said Kevin Parker, head of cash equities and equity trading, has been promoted to head global equities, and Anshu Jain, head of global capital markets sales, over-the-counter derivatives, and emerging markets, will lead the refined global markets group.
Grant Kvalheim, global head of debt capital markets, will lead the newly created debt capital markets group. Thomas Gahan, global head of credit products, will now head leveraged finance and loan products.
The newly named heads will mostly maintain their existing roles, by overseeing the divisions in which they have been working.
All the professionals will report up to Josef Ackermann, chairman of global corporates and investments. It is unclear, however, whether the banking company will tap a successor to the late Mr. Mitchell. Mr. Mitchell had been set to succeed Mr. Ackermann, who is scheduled to become chairman of the Frankfurt bank in June, when Rolf Breuer retires.
All promotions had been decided ahead of Mr. Mitchells death, the spokesman said.
This is what he wanted, what would have happened, the spokesman said, referring to Mr. Mitchell.
The bank reorganized sales and trading to facilitate relationships with clients. By separating the activities into four parts, it makes it easier for clients to differentiate the roles of the bankers.
Deutsche Bank first announced plans to restructure the entire bank in December. By creating two distinct units product creation and distribution the bank would have more opportunities to capitalize on cross-selling. Deutsche Banks move follows similar actions taken by competitors such as Credit Suisse Group, Citigroup Inc., and the former Chase Manhattan Corp.
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