Bankers Trust chiefs fear mass exodus after Deutsche takeover

SENIOR MANAGERS at Bankers Trust are bracing themselves for a mass exodus at the bank when its $10bn takeover by Germany's Deutsche Bank becomes effective next month.

Rival investment bankers who have been rubbing their hands in anticipation of being able to pick off key staff say that "hundreds" of junior and middle ranking staff in both London and New York have already gone.

Bankers say the "golden handcuffs" worth $400m put in place in March to hold on to key employees are not having the desired effect. Middle ranking staff complain that most of it was snaffled by those at the very top, such as BT chief executive Frank Newman and vice-chairmen Mayo Shattuck and Yves de Balmain, leaving a pittance for those lower down. Half the amount - $202m - is going to just the top six. So peeved are more junior staff that they have run up T-shirts with the caption: "Frank Newman got $55m and all I got was a lousy T-shirt."

It is understood that a number of key staff in the US, including the heads of Treasury and global fixed income, have yet to agree terms to stay.

"The bank is just melting away," said one banker who was due to see several BT employees about joining his firm. "The handcuffs have been hogged by those at the top. No one wants to work for Deutsche Bank."

The bank is also due next month to pay out some of the annual bonuses agreed at the end of last year but held back to prevent staff leaving.

High profile defections at BT in recent months include Alex Graham, the London-based head of European equity markets who was poached by Donaldson, Lufkin Jenrette; Matthew Collins, head of European Debt Capital markets who is going to Merrill Lynch; and Bruce Brandaleone, head of global equity sales and trading.

Josef Ackermann, head of Deutsche Bank's existing investment banking operation, admitted last week that some banks were offering staff "tremendous" amounts of money and acknowledged that this was causing him concern.

Although the equity advisory business is not seen by competitors as a threat, BT was known for its expertise in leveraged finance, which is seen by big global players such as Goldman Sachs and Merrill Lynch as an increasingly powerful weapon in winning Initial Public Offering (IPO) business. Rivals say that is now at risk.

Deutsche, whose casualties so far since the takeover was announced have been relatively modest, said at the outset that it wanted to cut staff by 5,500, mostly in London and New York. The Bankers Trust name is to disappear, although the bank is planning to retain Alex.Brown.

The highest profile departure is the telecoms team led by James Golob and Bill Harrison.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
News
i100
News
Budapest, 1989. Sleepware and panties.
newsDavid Hlynsky's images of Soviet Union shop windows shine a light on our consumerist culture
Arts and Entertainment
Eleanor Catton has hit back after being accused of 'treachery' for criticising the government.
books
News
In humans, the ability to regulate the expression of genes through thoughts alone could open up an entirely new avenue for medicine.
science
News
Williams says: 'The reason I got jobs was because they would blow the budget on the big guys - but they only had to pay me the price of a cup of tea'
arts + ents
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee