Deutsche Bank is the latest firm on the Street struggling to please and hold on to senior staffers after merging its equity and debt derivatives. Johan Groothaert, senior equity derivatives head in London, has taken an extended holiday and is reportedly set to leave Deutsche Bank in London. That follows a spate of credit derivative departures at the firm (DW, 2/24).
Groothaert has held several senior roles at the firm, including most recently co-head of structured equity and global head of retail marketing and structuring. Stephanie Smart, spokeswoman for Deutsche Bank, and Groothaert, reached on his cell phone, both declined comment. It could not be determined if he will take another role at the firm on his return or move elsewhere.
Like rivals Merrill Lynch and JPMorgan, Deutsche Bank merged its derivatives businesses over a year ago and now seems to have floundered on the same political problems as its U.S. rivals which sparked high-level departures. The German firm announced a further reorganization in November which set up a combined cash equity and derivatives group, with Groothaert and Serge Marquie, global head of equity strategics in New York, appointed to co-head structuring. It also last month unwound its cross-asset structured sales teams in Asia to split again along asset-class lines (DW, 2/3). Market reports are that Groothaert's group lost out in the course of this restructuring.
Groothaert is well regarded in the market and is attributed with being a key driver in creating a retail equity-linked business at Deutsche Bank which rivals--and in some regions betters--industry monolith SG Corporate & Investment Banking. "They have built an excellent franchise in many markets," said one rival equity head. Another added, "[Groothaert] has an impressive reputation and I have a very high respect for what he has achieved." He noted prior to Deutsche Bank, Groothaert was responsible for setting up a similar business at Merrill Lynch.
Rivals also noted, however, the continued growth of Deutsche Asset Management's retail structured product business, and several said it has not been clear if this is run in competition or harmony with the investment bank's structured product group. DeAM last year hired a group of senior sellside ABN AMRO staffers to build its structured retail business (DW, 7/1).
