FRANKFURT Nov 20 Deutsche Bank's
grip on wealth manager Sal. Oppenheim tightened on Tuesday when
the exclusive private bank said it will cut jobs and seek
additional cost savings by sharing its parent's resources.
The move comes as a blow to the 220-year-old Cologne-based
adviser to ultra-rich Germans, which has prided itself on being
run at arms' length from Deutsche Bank.
In April Sal. Oppenheim Chief Executive Wilhelm von Haller
said it had almost completed a multi-year restructuring, which
sent staff levels dwindling to about 930 from around 2,400.
But on Tuesday the wealth manager said it would again adapt
its organisational structure to eliminate overlaps and share
more services and infrastructure with Deutsche Bank because of
slumping markets and tougher regulatory requirements.
"Due to the planned measures, a significant number of jobs
are impacted," Sal. Oppenheim said, without providing further
The wealth management industry as a whole has suffered from
clients holding back on making investments, eroding commission
and fee income. The tougher market environment has forced
several of Sal. Oppenheim's competitors to restructure.
Credit Suisse's on Tuesday said that it, too, will
overhaul its wealth management operations, integrating its
private banking arm and asset management unit.
Sal Oppenheim said it will transfer some fund management
activities to Deutsche Bank's asset management unit DWS.
In September Deutsche Bank unveiled a new strategy for its
asset and wealth management division - of which Sal. Oppenheim
is a part. It said that it wanted to more than double annual
pretax profit at the division to 1.7 billion euros ($2.2
billion) by 2015.
Deutsche swooped on Sal. Oppenheim in 2009 when the private
bank was forced to sell after investments in Arcandor turned
sour when the retailer collapsed.
($1 = 0.7811 euros)
(Reporting by Edward Taylor and Kathrin Jones)