BNP Paribas transfers 900 employees of Deutsche Bank as blue chip services deal is reached

By on January 5, 2022 0

BNP Paribas has reassigned 900 Deutsche Bank employees to its operations as it draws a line on the acquisition of the German lender’s blue-chip services and e-equity business from the German lender.

The French bank has now completed the transfer of technology, employees and customers linked to Deutsche Bank’s main finance and electronic equity unit, the two banks said in a statement.

It comes about two years after BNP Paribas agreed to take over the units, offering a lifeline to hundreds of Deutsche employees after the closure of its equity trading division as part of a larger overhaul of its activities which will ultimately lead to the loss of 18,000 jobs.

READ Barclays expands blue chip brokerage business as rivals pull out after Archegos

BNP Paribas is one of the few European investment banks still to embark on blue chip services after the collapse of the Archegos Capital family office, which cost the industry more than $ 10 billion. Credit Suisse, the worst-hit bank with a loss of $ 5.5 billion, effectively closed its blue-chip services division in November as part of a broader shift in strategy. UK lender Barclays is also hiring staff for its blue chip services unit and aims to take market share from rivals, its co-head of equities, Paul Leech, told Financial News in November.

Olivier Osty, Head of Global Markets at BNP Paribas, said the bank was now “well positioned to be the leading European player in world class services”.

Credit Suisse also reached an agreement to recommend its hedge fund clients to BNP Paribas in November.

The French bank appointed former Deutsche executive Ashley Wilson as global head of blue chip services in July. BNP Paribas is investing more in equities after acquiring in March the remaining 50% of Exane, the investment company it already partially owned.

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