Deutsche Bank doesn't want its best traders to leave. As we reported previously, the German bank is both making its traders work during their notice periods and offering them higher pay as an inducement to stay. Even so, traders are leaving Deutsche Bank - and turning up at Goldman Sachs.
Goldman's most recent Deutsche Bank recruits include Dennis Cheng, a portfolio sales trader who was a vice president (VP) at Deutsche and just joined Goldman as an executive director in Hong Kong. Goldman also hired Christoph Gau, an ex-structured bond trader at Deutsche in London. Gau too joined as an ED. He will based in London and responsible for credit trading and illiquids.
Deutsche Bank is cutting 7,000 people from across the bank as it seeks to reduce costs under new CEO Christian Sewing. The German bank said today that it cut 1,700 people in the second quarter of 2018 - mostly in May and June. However, neither Cheng nor Gau were in roles Sewing highlighted for reduction, suggesting both may have gone to Goldman voluntarily.
They're not the first. At least three members of Deutsche bank's structured solutions team left for Goldman Sachs earlier this year. As Deutsche Bank is shrinking its investment bank, Goldman Sachs is pursuing $5bn in extra revenues over the next three years, of which $1bn is expected to come from fixed income currencies and commodities (FICC). As it goes for growth, Goldman is also hiring unusually high numbers of executive directors externally.
Some Deutsche staff seem to have decided that a move to Goldman is a career trade worth making.
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