Deutsche Bank reportedly just lost $20 billion in balances to one of its rivals

Deutsche Bank CEO Christian Sewing

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Deutsche Bank CEO Christian Sewing
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Reuters/Kai Pfaffenbach
  • London-based Barclays has reportedly lured hedge fund clients with $20 billion worth of balances from Deutsche Bank, according to reports from Reuters and CNBC.
  • Goldman Sachs and JPMorgan were also trying to convince Deutsche Bank’s clients to jump ship, CNBC reported, citing sources with knowledge of the matter.
  • The embattled German lender announced earlier this month that it was exiting the equities trading busines and shuttering 18,000 jobs as part of a major restructuring.
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Wall Street banks are pouncing on Deutsche Bank’s troubles.

Barclays has reportedly convinced hedge fund clients with $20 billion worth of balances at Deutsche Bank to jump ship, according to CNBC, which cited people familiar with the matter.

About half of the $20 billion came from one client, and competitors such as Goldman Sachs and JPMorgan were also interested in bringing the hedge funds onboard, CNBC reported.

The loss of business comes just weeks after Deutsche Bank announced it planned to cut 18,000 jobs amid a major shakeup of its investment banking and equities trading businesses.

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In early July, Deutsche Bank also said it struck a deal to transfer its prime brokerage business, which handles trades for hedge fund clients, to BNP Paribas, a French bank.

“It is not unexpected and perfectly natural that some clients may wish to move balances to other providers as a temporary measure while our discussions with BNP Paribas are ongoing,” Deutsche Bank said in a statement to CNBC. A spokesperson did not immediately respond to a request for comment from Markets Insider.

As the two firms have been working out the details of the transaction, Deutsche Bank’s clients have been pulling out as much as $1 billion a day from its prime brokerage business, Bloomberg reported last week.

Deutsche Bank is down 2.15% year-to-date as of Thursday.

DB Shares

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DB Shares
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Markets Insider

According to CNBC, $10 billion of the $20 billion came from a single client.