Printer Friendly

DEUTSCHE BANK TO EXPAND IN U.S.

 DEUTSCHE BANK TO EXPAND IN U.S.
 NEW YORK, May 5 /PRNewswire/ -- The Deutsche Bank Group, Germany's


largest financial services organization, today announced plans to restructure and significantly broaden its North American operations. The group's North American units currently employ more than 1,200 staff.
 Ronaldo Schmitz, the Deutsche Bank board member responsible for North America, said in New York today, "In the next two years, we plan to grow U.S. operations to become a leading player in key wholesale sectors. This will include commitments of additional capital and entry into new businesses." Schmitz noted, however, that the group had no imminent acquisition plans. In terms of business initiatives, the group will emphasize domestic corporate finance, involving both the credit and capital markets and trading, including swaps, foreign exchange and derivatives. The group will also focus on asset management, in particular for private clients.
 Under the new structure, all of the group's U.S., Canadian and Mexican activities will be coordinated within a new holding company structure, Deutsche Bank North America Holding Corp. The holding company will be managed from New York City.
 This move comes at a time when many foreign banks are curtailing their U.S. activities. Hilmar Kopper, spokesman of Deutsche Bank's board, said in Frankfurt, "We have the utmost confidence in the strength and resiliency of the U.S. economy and its financial markets. We therefore welcome the opportunity to expand our local participation."
 In the past two years, the group's U.S.-originated assets have more than tripled. The group maintains relationships with 69 of America's 100 largest industrial companies. Schmitz commented, "In the past few years, corporate America has made impressive strides in improving its global competitiveness and efficiency. Deutsche Bank wants to be part of the U.S. economic resurgence as this fact manifests itself on world markets." In addition, Deutsche Bank will continue to play a prominent role in the U.S. financial activities of German companies.
 Through the medium-term, additional staff will be required. In line with group practice, most new staff positions will be filled by locals. "We place a premium on American financial know-how. Furthermore, many of our clients have expressed approval at the blending of cultures that occurs when this strategy is pursued," said Schmitz. For some time, the group has operated a training center in New York to service trainees form the United States and abroad. The training center also keeps U.S. staff on top of market developments.
 Last year, Deutsche Bank's U.S. securities subsidiary went against the trend when it received recognition by the New York Federal Reserve Bank as a primary dealer. This came at a time when foreign institutions were withdrawing applications. "Deutsche Bank pursues long-term strategies and we thought it would be short-sighted to pass up the opportunity to participate in the world's largest bond market. To date our activities as a primary dealer have worked out better and faster than we had originally forecast."
 So far, the group has been largely untouched by the much-publicized problem loans in the United States. This reflects credit policies that traditionally tend to be highly conservative. "The fact that the group has not had to take material losses on U.S. lending puts Deutsche Bank in a good position to continue to lend to the U.S. market on a consistently selective basis."
 Deutsche Bank opened its New York branch in 1978. The group is engaged in commercial banking and participates in certain investment banking functions through subsidiaries. It operates branches in New York, Chicago and Los Angeles, with major subsidiaries based in New York and Deerfield, Ill. It also conducts commercial and investment banking activities through subsidiaries based in Toronto and maintains a representative office in Mexico City.
 Deutsche Bank AG is Germany's largest bank, with group assets of nearly DM 450 billion (US$296 billion). It is active in over 40 countries and is one of the few banks to receive the highest rating from all major rating agencies.
 -0- 5/5/92
 /CONTACT: Hellmut Hartmann (Frankfurt), 011-49-69-7150-3400; or Detlev Staecker, 212-474-8000, both of Deutsche Bank/ CO: Deutsche Bank Group ST: New York IN: FIN SU:


LR -- NY062 -- 6580 05/05/92 12:39 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 5, 1992
Words:704
Previous Article:McDONNELL DOUGLAS HONORS CHANDLER, ARIZ. EMPLOYEE FOR COMMUNITY SERVICE
Next Article:S&P RANKS ELAN TOP DRUG INDUSTRY EARNINGS PERFORMER; 10-YEAR RECORD SET


Related Articles
DEUTSCHE BANK-ADVISED REIT RAISES $130 MILLION; CAPITAL TO BE USED TO FUND NEW U.S. INVESTMENTS AND REDUCE LEVERAGE
Deutsche Financial Services Restructures; Aims To Become Leading Global Distribution Finance Company
Deutsche Bank.
DCR Places Bankers Trust on Rating Watch--Up Following Acquisition Agreement with Deutsche Bank.
Deutsche Financial Services Takes Lead Position on $13 Million Credit Facility For Micros-To-Mainframes.
Boullioun Announces Lease Deals, Engine Order, Web-Site Launch at the Paris Air Show.
Deutsche Bank Acquires The Chase Manhattan Bank's Dutch Auction Business.
Deutsche Bank Takes Equity Stake in TradeWeb.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters