Alex. Brown

Deutsche Bank Sells U.S. Wealth Manager

Mr. Cryan gets the Warhol treatment. Source: AFP [M]
Mr. Cryan gets the Warhol treatment.
  • Why it matters

    Why it matters

    Deutsche Bank needs to reduce its expenses to return to sustainable profits.

  • Facts

    Facts

    • John Cryan came in as a new head of the bank in July after shareholders lost confidence in the two previous co-chief executives.
    • Mr. Cryan announced a restructuring program in October to trim operations, lower costs and increase its profitability.
    • Deutsche Bank has faced record fines this year and is still involved in hundreds of legal cases.
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    Audio

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Step by step, Deutsche Bank’s Co-Chief Executive John Cryan is following through on his big plan to reorganize and streamline Germany’s largest bank, an undertaking that will trim 35,000 jobs and operations around the world.

The German bank agreed to sell a U.S. wealth management business, formerly called Alex. Brown, to a Florida rival, Raymond James. Raymond James will pay $20 million to take over the operations from Deutsche Bank and cover “integration-related expenses,” according to a statement.

The unit, which Deutsche Bank had called “Private Client Services,” manages $50 billion in assets and has revenue of $300 million a year, Raymond James said.

Deutsche Bank’s other U.S. private banking operations will remain part of Deutsche Bank. Alex. Brown was part of the Banks’s Deutsche Asset & Wealth Management unit, which globally manages $1.2 trillion worth of assets.

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