Deutsche Bank turns into a Cerberus investor for advice turn

Troubled Deutsche Bank turned to one of its investors for tips about how to turn the fate of loss of the lender.

Chief Executive, Christian sewing has hired a new York Private investment firm cerberus as an Advisor.

Specialist’s turnover has roughly 3pc share in the “Deutsche Bank” and its other investments include fellow German lender Commerzbank.

A source close to the Bank said the focus will be on Cerberus where the lender needs to cut.

Mr. sewing, who took over from ousted Yorkshire-born boss John Cryan at the beginning of this year, announced early in his career that he would push through more than 7,000 job losses, with the axe falling mainly in the troubled Investment Bank.

This may mean a further decline in the course of its 8000-strong workforce in the UK, which sits in the investment banking division.

The former boss of Deutsche Bank John Cryan was overthrown in the beginning of this year

Credit:
Jason Alden/Bloomberg

Cerberus will be limited in the purchase or sale of shares of Deutsche Bank, while the business of the Board and will have to ensure no conflict of interest.

The representative of the “Deutsche Bank” said: “bringing in the acknowledged experience of the operation “Cerberus” the consulting company will support us in achieving attractive returns for our investors.”

Spokesman for Cerberus said: “Cerberus has a lot of experience driving value through financial and operational improvements.” The Advisor agreement was first reported by the wall Street Journal.

The President of Cerberus and a former senior Morgan banker Matt zames will be part of the Advisory group to work with Deutsche Bank, according to the report.

As well as investment in Deutsche Bank and Commerzbank, Cerberus also owns the German lender HSH Nordbank as part of a consortium of investors. Private investor often provides paid consulting to companies invested in this area.

Last month, Mr. sewing has admitted that he is “sick and tired of bad news” for large creditor Germany, but said there was “good news bad” and the staff said “we need to look ahead.”

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