Deutsche Bank restructured, U.S. banks unshackled: This Week in Finance

Welcome to This Week in Finance, your weekly roundup of the conversations trending among financial professionals on LinkedIn. Click Subscribe above to be notified of each edition. This week:

Deutsche Bank to slash 20,000 jobs

Deutsche Bank could slash up to 20,000 jobs, a fifth of its workforce, by 2022. Chief Financial Officer James von Moltke called the move a “final restructuring.” The German lender aims to reduce adjusted costs by a quarter to €17 billion euros ($19 billion), but is likely to post a net loss of €2.8 billion ($3.1 billion) in the second quarter of 2019. It also announced it will pull out of global equities sales and trading operations, and scale back investment banking two days after investment banking chief Garth Ritchie resigned. ?? Here's what people are saying.

Banks are on a deal hunt

U.S. regulators have quietly removed some of the shackles intended to hinder growth of the banking industry after the financial crisis, Bloomberg reported. Regulators have approved plans by big banks such as JPMorgan Chase to expand into everyday America and make acquisitions. Banks struck more mergers and acquisitions in the first five months of this year than during any full year in the past decade, according to S&P Global data. Some argue the shift is a reflection of banks’ improved health, while others worry it could encourage excessive risk-taking. ?? Here's what people are saying.

Brexit? You can bank on it: BOE

Britain’s banking system is resilient enough to handle even the most “disorderly” Brexit, the Bank of England said. In its financial stability report, the bank said that while “material risks” of economic disruption from a no-deal Brexit remain, there had been “some improvement in the preparedness of the UK economy.” Ongoing political uncertainty and a raft of disappointing economic data pushed the pound close to a two-year low against the dollar this week. ?? Here's what people are saying.

Fed rate cut coming?

Federal Reserve officials appeared poised to cut interest rates later this month. Notes from the central bank’s June meeting showed that participants said a rate cut could protect the economy from future blows. Chairman Jerome Powell told Congress this week that the Fed would “act as appropriate” to sustain the current economic expansion, citing lagging inflation and trade tensions as ongoing threats. He also stressed his independence, telling lawmakers he would not leave his post due to political pressure before his tenure is up. ?? Here's what people are saying.

Finance jobs are disappearing

Thousands of finance professionals around the world have been left out of a job following Deutsche Bank’s decision this week to close its equities business and cut about 18,000 jobs — equivalent to one-fifth of its global workforce. The finance sector has shed hundreds of thousands of jobs since the 2008 crisis, partially due to curbs on risk-taking and increased automation. Front-office headcount for investment banking and trading dropped in 2018 for a fifth year, according to Coalition Development, while hedge funds have also cut back. ?? Here's what people are saying.

—With Natalie MacDonald, Andrew M. Seaman, Monica Fike, and Riva Gold.

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