Deutsche Bank ‘Beyond Repair’ as Trading Drops, Autonomous Says
- German firm’s technology a ‘clear laggard’ versus JPMorgan
- Investors are ‘inevitably’ questioning bank’s leadership
The twin tower skyscraper headquarter offices of Deutsche Bank AG stand in Frankfurt.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Deutsche Bank AG may be “beyond repair” unless there’s a “miracle” boom at its once-mighty bond-trading business, according to Autonomous Research LLP.
The firm’s “faltering” fixed-income and currency markets franchise, which generates about a quarter of profits, can no longer be counted on to drive earnings, Autonomous co-founder Stuart Graham said in a Sept. 18 note. Adding to the German lender’s problems, more than a decade of underinvestment in technology has left it a “clear laggard” to rivals like JPMorgan Chase & Co., while misconduct scandals have tarnished its reputation with clients.