Deutsche Bank Details American Global Wealth Expansion
Deutsche Bank plans to add more wealth management personnel in the U.S. as part of its broader strategy to build its global wealth management business, according to news reports.
The company plans to boost the worldwide ranks of its relationship and investment mangers in the wealth management division by about a third, or 300 more people, by 2021, under a plan by Fabrizio Campelli, global head of Deutsche Bank Wealth Management, Reuters writes.
The bank plans to spread the new hires across its America, Europe and Emerging Markets operations, according to the newswire.
“This drive to grow our business is now materialising with a big investment push,” Campelli tells Reuters. “We looked at trends we believe Deutsche Bank wealth management can be particularly relevant in and within those areas we are making some very targeted investments.”
He tells the newswire that the investment will be “several hundred million” euros, declining to give more detail. Currently, Deutsche Bank’s wealth management business has $242.35 billion under management, according to Reuters.
The bank has already made inroads on its U.S. hiring spree. Last month, Deutsche Bank brought on Michael Rogers, who joined the firm from Merrill Lynch Private Banking and Investment Group, to serve as its West Coast head. Deutsche Bank then hired Angel Chen and Donald Taylor, who previously served as senior vice presidents at City National Bank’s Private Client Services, as managing directors in Los Angeles.
Deutsche Bank’s U.S. wealth management unit has also recently attracted regulatory scrutiny, however. In March, the New York Attorney General’s office opened an investigation into the company’s dealings with the Trump Organization. The unit allegedly lent President Donald Trump’s organization more than $270 million from 2012 to 2015, despite Deutsche Bank’s investment banking arm no longer doing business with Trump’s organization.
In the most recentl development, reports emerged that Tammy McFadden, a former Deutsche Bank anti-money laundering specialist who claims the firm ignored her recommendations that transactions involving Kushner Companies be reported to regulators, had also raised flags about compliance issues at Bank of America.
McFadden told the New York Times in May that Deutsche Bank terminated her last year following her complaints.
McFadden had apparently filed a suit against Bank of America in 2006, claiming that her 2005 dismissal had been wrongful termination, according to Bloomberg. She eventually reached a settlement with the company, whose terms weren’t disclosed, according to court papers cited by the news service.
McFadden declined comment to Bloomberg about the Bank of America case, aside from saying that the Deutsche Bank case is “very different.”
Representatives for both Deutsche Bank and Bank of America also declined comment to the news service.