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- Deutsche Bank is paying “danger money” to lure a team of bankers from Credit Suisse to boost its wealth management business, according to a Financial Times report.
- The struggling lender reportedly offered the bankers pay raises of up to 40% and to match their 2018 bonuses, the report said.
- In early July, the bank announced it would be cutting 18,000 jobs worldwide as it restructured its business away from equities trading.
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As Deutsche Bank shutters its trading business, the German lender is doubling down on wealth management.
The firm is offering lucrative pay packages to entice a team of 13 bankers from Credit Suisse in Italy to focus on ultra-wealthy clients worth at least $30 million, according to a report from the Financial Times.
An industry insider told the FT that Deutsche Bank is paying “danger money” to bring the bankers on board by offering to match their 2018 bonuses and raise their salaries by up to 40%.
The firm announced last week that it planned to lay-off 18,000 employees amid a major shakeup that would take the bank out of the equities trading business.
Roberto Coletta, the current head of ultra-high net worth individuals at Credit Suisse’s Italy operation, is expected to run the team, the FT reported. Claudius de Sanctis, the head of Deutsche Bank’s Wealth Management practice in Europe, left Credit Suisse last year to join the firm.
According to the FT, another two senior bankers from Credit Suisse joined Deutche Bank’s London office in June. Sanctis told the FT that the new wealth management hires were made at the market price.
“We have a great story to tell and when you have great story to tell you don’t need to pay over market price,” Sanctis said to the FT.
Deutsche Bank is down 3% year-to-date.