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The financial bodies are the backbone of any economy. Hence, the government always focuses on their well-being and profitability. Whenever these organizations are in crisis, it is a sign of mishappening. Deutsche Bank, which is also familiar as ‘Crown Jewel’ of Wall Street is, unfortunately, going through such crisis.
What is the matter with Deutsche Bank?
Deutsche Bank is going through some strategic transformation. Pertaining to these transformations costing $ 3.1 Billion, the bank is suffering a loss of $3.5 billion. Besides that, due to these strategic transformations, the bank will be laying off 18000 employees globally including its employees in India.
The stocks of the bank are continuously falling after the cancellation of its merger with Commerczbank. As of now, it’s stock is at the lowest in its 149 years of history.
Such circumstances have led investors to lose confidence in the bank. Many of the experts are indicating that the Deutsche Bank is moving towards the Lehman Brothers way which is responsible for the recession of 2008.
Christian Sewing, CEO, Deutsche Bank said:
“We have already taken significant steps to implement our strategy to transform Deutsche Bank. These are reflected in our results. A substantial part of our restructuring costs is already digested in the second quarter. Excluding transformation charges, the bank would be profitable”.
In the year 2008, when Lehman Brothers fall, many of the investors lost their money. This incident led to a financial crisis across the world which brought the recession in the manufacturing sector. 26000 Employees of Lehman Brothers immediately lost their job. On the other hand, many industries in order to reduce their expenditure laid off the employees.
The recession of 2008 is responsible for claiming the jobs & lives of many people. Hopefully, the things with Deutsche Bank goes well so we don’t have to face another recession in a decade.