INSIDER
GUIDE Deutsche Bank in the U.S.
2010 EDITION
Deutsche Bank in the U.S.
WETFEET 1518 Walnut St. Suite 1800 Philadelphia, PA 19102 Phone: (215) 546-4900 or 1-800-926-4JOB Fax: (215) 546-9921 Website: www.wetfeet.com
DEUTSCHE BANK IN THE U.S. 2010 Edition ISBN: 978-1-58207-917-2 PHOTOCOPYING IS PROHIBITED Copyright 2010 WetFeet. All rights reserved. This publication is protected by the copyright laws of the United States of America. No copying in any form is permitted. It may not be reproduced, distributed, stored in a retrieval system, or transmitted in any form or by any means, in part or in whole, without the express written permission of WetFeet. The publisher, author, and any other party involved in creation, production, delivery, or sale of this WetFeet Insider Guide make no warranty, express or implied, about the accuracy or reliability of the information found herein. To the degree you use this guide or other materials referenced herein, you do so at your own risk. The materials contained herein are general in nature and may not apply to particular factual or legal circumstances. Under no circumstances shall the publisher, author, or any other party involved in creation, production or delivery of this guide be liable to you or any other person for damages of any kind arising from access to, or use of, its content. All illustrations by mckibillo
Deutsche Bank in the U.S.
CHAPTER
1 2 1 DEUTSCHE BANK IN THE U.S. AT A GLANCE
5 THE FIRM 6 Overview 8 The Bottom Line 8 Competitive Strategy 9 Industry Position 11 Research Rankings 12 A Quick History Lesson
Deutsche Bank in the U.S.
14 Organization of the Firm 17 What’s Hot
conte 2010 EDITION
3456 21 ON THE JOB
37 THE WORKPLACE
49 GETTING HIRED
22 Global Markets
38 Lifestyle and Hours
50 The Recruiting Process
26 Research
38 Culture
27 Global Banking
40 Workplace Diversity
52 On-the-Record Recruiter Interview
28 Asset Management
41 Travel Requirements
54 Interviewing Tips
30 Finance
41 Compensation, Vacation, and Perks
55 Grilling Your Interviewer
57 FOR YOUR REFERENCE 58 Investment Banking Lingo 63 Recommended Reading 63 For Further Study
32 Group Technology & Operations (GTO)
42 Civic Involvement 43 Training 44 Career Path 45 The Inside Scoop
nts
64 Key Numbers and People
Deutsche Bank in the U.S. at a Glance
1
AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE
Deutsche Bank in the U.S.
DEUTSCHE BANK IN THE U.S. AT A GLANCE Headquarters Theodor-Heuss-Allee 70 60262 Frankfurt Germany Phone: +49-69 910-00 Fax: +49 69 910-34225 www.db.com
Primary U.S. office 60 Wall Street New York, NY 10005 Phone: 212-250-2500
Ticker symbols New York Ticker: DB Frankfurt Ticker: DBK London Ticker: DBKG Paris Ticker: DBKG
Primary Competitors Bank of America, Citigroup, Credit Suisse Group, Goldman Sachs, HSBC, UBS, Morgan Stanley, JPMorgan Chase
GETTING HIRED
4VSWJWFEëOBODJBMDSJTJTXIJMFCJHDPNQFUJUPSTGFMM by the wayside
In the Recruiters’ Words “Most of the candidates that make it through the screening process have the nuts and bolts: the grade point average, the type-A personality. You can tick all those boxes off. We’re looking for people who are genuinely interested in this business, motivated to succeed, and who will work well in a group environment—people we can envision as leaders of the GVUVSF OPUKVTUBTHPPEBOBMZTUTw i*QVUMFTTFNQIBTJTPOUIFJSëOBODFCBDLHSPVOEQFS se than on their personality features. They need an intense work ethic and a competitive nature. They also OFFEUPCFXFMMSPVOEFE8IFOZPVSFBKVOJPSQFSTPO in investment banking, you spend 80 percent of your time with your coworkers. It’s important that you TQFOEJUXJUITPNFPOFZPVEMJLFUPHSBCBCFFSXJUIw i"UBKVOJPSMFWFM JUTBXPSLIBSE QMBZIBSE environment. We hire people who are very social, not KVTUIFBEJOBCPPLQFPQMFw
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4USPOHCSBOESFDPHOJUJPO XJUIBQSFTFODF in 72 countries
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“They’ve got to be willing to break the glass, take a little risk. Be willing to learn, but not be unwilling to question. I look for people who exhibit an entrepreneurial orientation. It doesn’t mean that everyone does a startup. It means they took a blank sheet of paper and createdTPNFUIJOHw
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4JHOJëDBOUQMBZFSJOUIFHMPCBMJOTUJUVUJPOBMTFDUPS especially in the debt and equity markets
In the Interview
Key Differentiating Factors
FOR YOUR REFERENCE
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#VJMEJOHBQSPNJOFOUSFQVUBUJPOJOMFWFSBHFEëOBODF
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2
W E T F E E T I N S ID ER GU ID E
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,OPXXIFSFZPVEëUJOUIFPSHBOJ[BUJPO BOE FNCPEZUIFëWF%FVUTDIF#BOLWBMVFT customer focus, teamwork, innovation, performance, and trust.
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#FZPVSTFMG CVUCFZPVSCFTUTFMG
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#FDPOëEFOU OPUBSSPHBOU*OUFSWJFXFSTXJMMMPPL GPSTFMGDPOëEFODF CVUZPVXPOUHFUCFZPOEUIF interview if you come across as a know-it-all.
AT A GLANCE
t
Anticipated Hires, 2010 Global (U.S. Figures in Parentheses)
“People are open about trying to help you deliver the best solution to the client. It’s not about egos: People get recognition for operating in a teamlike atmosphere. "OEUIFZHFUSFXBSEFEGPSJUëOBODJBMMZw
Analysts Base salary $55,000–65,000 Signing bonus $7,000–10,000 Year-end bonus Discretionary Associates Base salary $95,000 Signing bonus $20,000–40,000 Year-end bonus discretionary Source: Deutsche Bank does not release compensation data; all compensation data are based on WetFeet research and estimates.
The Career Ladder
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.#"TBSFIJSFEBTBTTPDJBUFTJO(MPCBM#BOLJOH Global Markets, and Asset Management.
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.BOZDPNQBOJFTDMBJNUPCFiHMPCBM wCVU Deutsche Bank really is. With 78,896 employees in 72 countries, opportunities for working internationally—particularly for those with language skills—are plentiful. Make your geographic preferences known when you interview.
FOR YOUR REFERENCE
6OEFSHSBEVBUFTBSFIJSFEBTBOBMZTUTJO(MPCBM Banking, Global Markets, and Private Wealth Management, and in corporate functions such BTUFDIOPMPHZBOEPQFSBUJPOT ëOBODF SJTL management, and human resources.
GETTING HIRED
t
THE WORKPLACE
“Deutsche Bank is full of incredibly intelligent, hardworking people who don’t take themselves too seriously. There’s not a lot of ego flying around the USBEJOHìPPSDPNQBSFEUPPUIFSëSNT*WFXPSLFEGPSw
Estimated Compensation, U.S.
ON THE JOB
“The team culture is far better than when I came on board in 2002—maybe because of the hires we’ve made. We’ve cut out a lot of BS and sharp elbows. We’re still a hard-edged, performance-oriented culture, CVUJUTEJSFDUFEUPXBSEIPXUPDPWFSUIFDMJFOUCFTUw
THE FIRM
What Insiders Say
Full-time analyst hires: 650–675 (175–200) Full-time associate hires: 90–100 (50–60) Analyst intern hires: 650–675 (175–200) Associate intern hires: 90–100 (50–60)
WETFEET INSI DER G UIDE
3
The Firm
2
Overview..........................................6 The Bottom Line. .............................8 Competitive Strategy .......................8 Industry Position .............................9 Research Rankings .........................11 A Quick History Lesson .................12 Organization of the Firm ...............14 What’s Hot.....................................17
AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE GETTING HIRED FOR YOUR REFERENCE
Deutsche Bank in the U.S.
OVERVIEW Deutsche Bank has a long and venerable history as the largest bank in Germany and is a solid leader in UIF&VSPQFBOëOBODJBMNBSLFUT#VUUIBUJTOUFOPVHI GPS%FVUTDIF#BOLɨFEJWFSTJëFEëOBODJBMHJBOUJT intent on becoming a household name in America as well, and establishing itself among the biggest and best banks on Wall Street. How close is Deutsche Bank to SFBDIJOHUIJTHPBM ɨBUNJHIUKVTUCFUIFCFTULFQU secret on the Street. Deutsche Bank struggled with its identity for a good decade, especially in the early 2000s: Was it a German bank with a U.S. presence? Was it primarily a commercial bank with an investment-banking portfolio? Would it beef up its retail business with another acquisition? In 2005, Deutsche Bank put those questions to rest. 4XJTTCPSO+PTFG"DLFSNBOO XIPCFDBNF$&0JO NBEFJUDMFBSUIBU ëSTUBOEGPSFNPTU %FVUTDIF Bank is a global investment bank—one that also IBQQFOTUPIBWFBQSPëUBCMFSFUBJMCSPLFSBHFCVTJOFTT )FDVUIFBEDPVOU SFTUSVDUVSFEUIFPSHBOJ[BUJPO and promised a 25 percent return on equity in 2005. Not only did he deliver on that promise, he grew net income by an astonishing 53 percent in 2005. In 2006, pretax revenues increased 24.8 percent from 2005, and although 2007 produced a much more modest increase of 7.3 percent, it was still an overwhelming success given the conditions. While other banks were ravaged by the credit crunch, Deutsche Bank escaped relatively unscathed. Remarkably, it didn’t show any subprimerelated losses in the fourth quarter of 2007 (though it did have a third-quarter write-down of $3 billion that year). Unsurprisingly, things did not go so well in 2008. Deutsche Bank was forced to write off $1.5 billion in bad investments, resulting in a net loss of $5 CJMMJPOUIFCBOLTëSTUBOOVBMMPTTJOZFBST*UTB huge amount, but certainly less than some other banks suffered—Citibank and UBS, for example, who both posted 2008 losses in excess of $18 billion. In response UPUIFëOBODJBMDSJTJT "DLFSNBOOJOTUJUVUFEBOPWFSIBVM 6
W E T F E E T I N SID ER GU ID E
of the bank’s operations, focusing on growth and volume businesses—commodities, interest rates, currencies, and stock—while backing away from the complex ëOBODJBMFOHJOFFSJOHUIBUIFMQFEQSFDJQJUBUFUIFDSJTJT ɨFëSNTUSFOHUIFOFEJUTDBQJUBMSBUJPT NBEFSFEVDtions in its nonderivative trading assets, and took steps to reduce costs. Deutsche Bank also sold much of its American commercial real estate holdings in 2008.
INSIDER SCOOP “When people talk about the economic crisis, they look at it through the lens of turmoil. At Deutsche Bank, we look at it through the lens of opportunity.” ɨFëSTUIBMGPGQSFTFOUFEBDPOTJEFSBCMZ rosier picture. In the second quarter, Deutsche Bank QPTUFEOFUQSPëUTPGCJMMJPOVQQFSDFOUGSPN the same period in 2008. At the same time, though, the bank announced it was setting aside $1.5 billion in provisions for credit losses—a factor that set its stock price on the Frankfurt exchange reeling. During the crisis, Deutsche Bank received no direct HPWFSONFOUCBJMPVUNPOFZ*UEJE IPXFWFS CFOFëU indirectly from the government bailout of American International Group, receiving $11.8 billion as AIG made good on its derivatives trades. However, the fallout from the crisis has not ended. In July of 2009, a Senate panel subpoenaed Deutsche Bank and Goldman 4BDIT BQQBSFOUMZJOBOFêPSUUPëOEPVUXIFUIFSFYFDutives had private doubts about the mortgage-related securities the banks issued before the market meltdown. At the time this book went to press, there had been no further news about this investigation.
INSIDER SCOOP “This has been the toughest 20-month span to go through. I was on a ride—up, up, up, up, up!—in an environment that’s usually a roller coaster. Since then, we’ve taken some major hits. But this is the business we chose. The people left standing—sure we’re tired, but after seeing what this business has gone through, standing tall is a privilege.”
Revenue (¤)
2008
13,490
2007
30,745
2006
28,494 Source: Deutsche Bank 2008 annual report
ON THE JOB THE WORKPLACE GETTING HIRED
4JHOJëDBOUBDRVJTJUJPOTIBWFCVPZFE%FVUTDIF Bank’s growth in the U.S. market. While the bank FTUBCMJTIFEJUTëSTUCSBODIJOUIF64JO UIF acquisition of Bankers Trust in 1999 was Deutsche #BOLTUSVFFOUSÏFJOUPUIF64ëOBODJBMNBSLFU The merger with Alex Brown in 1999 strengthened Deutsche Bank’s U.S. investment banking and securities businesses, and in February 2006 the bank completed the integration of Scudder Investments (acquired in 2002) and Deutsche Bank’s DWS investNFOUTJOUPPOFPSHBOJ[BUJPO %844DVEEFS ɨF bank dropped the Scudder name in 2008, going with DWS Investments to align with the naming of its asset management business in Europe and Asia.) In 2006, it also bought RREEF to boost its U.S. real estate investment and management business. In 2007, Deutsche Bank purchased MortgageIT for $430 million to expand its U.S. lending operations and completed the BDRVJTJUJPOPGBTJHOJëDBOUNJOPSJUZJOUFSFTUJOUIF business of Aldus Equity, an alternative asset manageNFOUBOEBEWJTPSZCPVUJRVFTQFDJBMJ[JOHJODVTUPNJ[FEQSJWBUFFRVJUZJOWFTUJOH*O %FVUTDIF#BOL increased its equity stake in Hua Xia Bank in China, in addition to announcing plans to increase its overall presence in Hong Kong. DB’s approach to banking is contrarian, even maverick. It pioneered the market in credit derivatives, bucked conventional wisdom by integrating debt and equity operations, and has brought together previously
THE FIRM
Year
fragmented old-economy industries using M&A and MFWFSBHFEëOBODF If this doesn’t sound like the strategy typical of an old-school German bank, that might be because Deutsche Bank is becoming less German all UIFUJNFi8IFOQFPQMFUIJOLPG%FVUTDIF#BOL ëSTU PêUIFZUIJOLA(FSNBOZ wTBZT.JDIBFM$PMPO $00 of the bank’s DWS Investments division. Certainly, Frankfurt is headquarters of Deutsche Bank’s retail and commercial businesses, and Deutsche Bank ranks OVNCFSPOFJODPSQPSBUFëOBODFJO&VSPQF#VUPG its 78,896 employees in 2009, only 28,056 were in Germany. Close to a third of employees are are in the "NFSJDBTBOEUIF"TJB1BDJëDSFHJPO XJUIUIFSFNBJOder scattered throughout Europe. "DLFSNBOOJTUIFCBOLTëSTUOPO(FSNBO$&0 in the bank’s 139 years. The head of Deutsche Bank’s NPTUQSPëUBCMFCVTJOFTT (MPCBM.BSLFUT
"OTIV+BJO is from India. At the helm of Global Banking is former Goldman Sachs banker Michael Cohrs, an American. As Institutional Investor pointed out in its May DPWFSTUPSZ iɨF0VUTJEFST wUIFPSHBOJ[BUJPO Ackermann has built, flanked by Jain and Cohrs, “is as distinct from the bank’s German roots as it is from the "NFSJDBOEPNJOBUFESBOLTPGJUT8BMM4USFFUSJWBMTw Deutsche Bank is steadily working its way up in the investment banking league table rankings, but this progress report tells only part of the story. Deutsche Bank has excelled in areas that largely fall under the radar of traditional investment banking measures. Its TUSFOHUITIBWFCFFOJOëYFEJODPNF+BJOT(MPCBM Markets division plays a different kind of ball game from the bonds, mortgages, and other debt collateral UZQJDBMMZFRVBUFEXJUIëYFEJODPNF*OEFFE UIFCBOL has a risk-taking, problem-solving atmosphere, and the ESJWFUPëMMOJDIFTMFGUPQFOCZUIFDPNQFUJUJPO/PU TVSQSJTJOHMZ UIPTFBSFBMTPUIFEFëOJOHDIBSBDUFSJTUJDT of the people who succeed there.
AT A GLANCE
Deutsche Bank Revenue
FOR YOUR REFERENCE
WETFEET INSI DER G UIDE
7
AT A GLANCE
Deutsche Bank in the U.S.
FOR YOUR REFERENCE
GETTING HIRED
THE WORKPLACE
ON THE JOB
THE FIRM
π TRIALS AND TRIBULATIONS A breach-of-trust trial in Germany clouded Deutsche Bank’s fortunes in the middle of the past decade. In 2004, Ackermann and five other board members of Mannesmann, a German telecommunications company, were charged with unlawfully granting $56 million in bonuses and severance packages to company executives. They were acquitted, but the verdict was
appealed; the 2006 retrial ended when Ackermann agreed to pay a €3.2 million settlement, though his legal counsel advised the press he should still be presumed innocent. Later, Deutsche Bank’s board—in a vote of confidence—renewed Ackermann’s contract for another three years, until 2010; in 2009, the board renewed it again, until 2013.
THE BOTTOM LINE Deutsche Bank has worked hard to build its CSBOE#FGPSFUIFëOBODJBMDSJTJT JUIBEBMFBEJOH QPTJUJPO*UTMFBHVFUBCMFTSBOLJOH QSPëUBCJMJUZ and stock price all reflected its success. Even so, its reputation lagged behind some of its competitors. But after the shakedown of the past two years, its relative status has grown if for no other reason than that some of its most formidable rivals have disappeared. “I think we are coming out as a strong employer of DIPJDF wTBZT.JDIBFM$PMPOiɨFUBMFOUQPPMJTDFStainly intensifying. The yield we’re getting is higher— when we make offers, they’re generally accepted. We’re HFUUJOHUIFCFTUPGUIFCFTUSJHIUOPXw )PXFWFS UIFëOBODJBMTJUVBUJPOIBTDBMMFEGPSTPNF belt-tightening. The current head count of 78,896 represents a dip from the 2008 high of 80,253. This is reflected in recruiting statistics: DWS, for instance, is 8
W E T F E E T I N SID ER GU ID E
bringing in 30 to 35 new hires, down from a high of 50 to 55. While undergraduate hiring is done domestically in regions where Deutsche Bank has a presence, the U.S. is its primary source for MBA recruiting globally. Full-time associate trainees start in New York and analysts may start in New York or London, depending POUIFJSTQFDJëDKPCGPDVT#PUIUSBJOJOHQSPHSBNTBJN to provide the basics of investment banking. #FDBVTFUIFëSNJTBSFMBUJWFOFXDPNFSUP8BMM Street, the corporate culture at Deutsch Bank is more ìVJEUIBOBUNPSFWFOFSBCMFëSNT+VOJPSQFPQMFBSF very much a part of the team and get to work producUJWFMZXJUIUIFJSTFOJPST"OEBMUIPVHIiEJWFSTJUZwIBT CFDPNFBCV[[XPSEVQBOEEPXOUIF4USFFU %FVUTDIFT global nature makes it a necessity—diversity is built into its DNA. If you’re a team player, can demonstrate your intelligence, and are willing to think creatively and step forward with your ideas—without arrogance—Deutsche #BOLXBOUTUPUBMLXJUIZPV"ëOBODFCBDLHSPVOE is helpful, but as many Deutsche Bank managers will tell you, they’re willing to teach you that part of the business.
INSIDER SCOOP “The number of people we’re looking for is smaller. We have no thought of getting back to our peak head count. The likelihood of someone acknowledging Deutsche Bank is higher now than before. Now we compete with pretty much everybody.”
COMPETITIVE STRATEGY Market turmoil has rearranged the competitive landscape for Deutsche Bank domestically and worldwide. In certain areas, the bank’s competitive edge is unquestioned. Its Global Transaction Banking arm is especially strong in Europe and Asia; it remains solid in
1
J.P. Morgan
2
Morgan Stanley
3
Credit Suisse
4
The Blackstone Group
5
McKinsey & Company
6
Barclays Capital
7
Deutsche Bank
8
UBS
9
Bain & Company
10
Source: Universum’s 2009 IDEAL Employer Survey—American MBA Edition
The following awards and recognition exemplify %FVUTDIF#BOLTTUBUVTBTBHMPCBMMFBEFSJOëOBODJBM services:
Global Markets t
/BNFE#FTU#BOL0WFSBMMBOEGPS%FCU$BQJUBM Markets in the 2009 Euromoney Real Estate Awards
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/BNFE#FTU'PSFJHO#BOLJOUIF/PSEJD3FHJPO by Nordic Risk in 2009
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7PUFE/P0WFSBMMJOUIF3JTL*OUFSEFBMFS Survey 2009 WETFEET I NSI DER G UI DE
9
FOR YOUR REFERENCE
&VSPQFBOCBOLUPiDPORVFSw8BMM4USFFUEFQFOETPO what benchmarks you use. The company was working its way up the investment banking league tables in the U.S. before suffering some setbacks because of the credit crunch and recessionary economy. Deutsche #BOLESPQQFETJHOJëDBOUMZJONPTUEFCUSFMBUFE categories in the second quarter of 2008, though it did show improvement in M&A. Deutsche Bank, UBS, and Credit Suisse all have made concerted efforts in recent years to increase their presence in the U.S. It seems to have worked. All three European banks have cracked the top 10 Most %FTJSBCMF&NQMPZFSTJOSFTFBSDIëSN6OJWFSTVNT survey of MBA students interested in investment
Goldman Sachs
GETTING HIRED
Whether Deutsche Bank XJMMCFUIFëSTU
10 Most Desirable MBA Employers, Investment Banking
THE WORKPLACE
INDUSTRY POSITION
“There’s less competition—instead of ten or twelve banks, now there’s maybe five. But the competition that’s left is ferocious.”
ON THE JOB
“Most of our peers lost more than we did—the worst hit seen in any of our lifetimes. We’ve been relatively stable throughout. It has allowed us to rebound in a healthy and strong position.”
INSIDER SCOOP THE FIRM
INSIDER SCOOP
banking. In 2009, Deutsche Bank moved into eighth, while UBS dropped to ninth.
AT A GLANCE
the U.S., but has shown only nominal growth in the face of the economic crisis. The bank’s Cash Management business has shown similar strength—dominating in &VSPQFBOEHSPXJOHJO"TJB0UIFSBSFBTPGHSPXUI include Trade Finance and Trust & Securities services. In credit trading, the bank’s Corporate Banking and Securities arm has taken a hit, especially in the areas of credit and equity proprietary trading and equity derivatives. In the face of the volatile market, this is unsurprising. In keeping with Ackermann’s refocusing of bank strategy, commodities have proven TUSPOH"OEGPSëWFDPOTFDVUJWFZFBST Euromoney has named Deutsche Bank tops in market share for global GPSFJHOFYDIBOHFUIFOFXQMBZJOHëFMEIBTEPOF nothing to upset its position.
AT A GLANCE
Deutsche Bank in the U.S.
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GETTING HIRED
THE WORKPLACE
ON THE JOB
THE FIRM
t
/BNFE3JTL.BOBHFSPGUIF:FBSJOUIF&OFSHZ Risk Asia Awards 2009 /BNFE/VNCFS1SPWJEFSPG'PSFJHO&YDIBOHF Services 5 years running in the Euromoney FX Poll
Asset Management t
/BNFE#FTU'VOE(SPVQJOUIF0WFSBMM-BSHF category in 2008 Lipper Fund Awards for Germany.
t
/BNFE#FTU&RVJUZ(SPVQJOUIF-JQQFS Fund Awards for Singapore.
Global Banking t
8POAsian Banker Leadership Achievement Awards in Cash Management and Treasury Services in 2009
t
/BNFE.VUVBM'VOE$PNQBOZPGUIF:FBS 2007–Larger Groups at the 2007 Euro Fund Awards.
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/BNFE#FTU$BTI.BOBHFNFOU#BOLJO Asiamoney Cash Management Poll
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/BNFE#FTU5SBOTBDUJPO#BOLJO"TJB1BDJëD 7JFUOBN 1BLJTUBO BOE4SJ-BOLB #FTU$BTI Management Specialist, Corporates, in Asia1BDJëD BOE#FTU$BTI.BOBHFNFOU#BOLJO 7JFUOBN 1BLJTUBO BOE4SJ-BOLBJOThe Asset’s 2009 Asian Awards.
/BNFEUIFXPSMETMBSHFTUBMUFSOBUJWFJOWFTUNFOUT manager in Global Investor/Watson Wyatt’s Alternative Survey, June 2007 (RREEF had €65.9/$89 billion in assets under management worldwide as of June 30, 2007).
t
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/BNFE#FTU5SFBTVSZ$BTI.BOBHFNFOU Provider by Global Finance in 2009. Also cited in 8FTUFSO&VSPQFBT#FTU0WFSBMM#BOLGPS$BTI Management, Best Bank for Risk Management, and #FTU0WFSBMM#BOLGPS1BZNFOUTBOE$PMMFDUJPOT *OUIFAsset Asian Awards, named Best 5SBOTBDUJPO#BOLJO"TJB1BDJëD 7JFUOBN Pakistan and Sri Lanka, Best Cash Management 4QFDJBMJTU $PSQPSBUFT JO"TJB1BDJëD BOE#FTU $BTI.BOBHFNFOU#BOLJO7JFUOBN 1BLJTUBO and Sri Lanka.
t
/BNFE(MPCBM$BTI.BOBHFNFOU#BOLPGUIF:FBS by Treasury Management International in 2008.
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/BNFE#BOLPGUIF:FBSGPS(FSNBOZJOThe Banker Awards 2007.
EUROMONEY AWARDS 2009 Deutsche Bank took home a host of awards from Euromoney NBHB[JOFTBOOVBM"XBSETGPS&YDFMMFODF in 2009. Josef Ackermann received an award for iPVUTUBOEJOHDPOUSJCVUJPOUPëOBODJBMTFSWJDFTw
Global Awards t
Regional and Country Awards in Western Europe t t t t t
FOR YOUR REFERENCE
/BNFE#FTU&YQPSU'JOBODF#BOLJOUIFTrade & Forfaiting Review Awards 2008.
10
W E T F E E T I N SID ER GU ID E
#FTU3JTL"EWJTPSJO8FTUFSO&VSPQF #FTUBU'9.BOBHFNFOUJO8FTUFSO&VSPQF #FTUBU$BTI.BOBHFNFOUJO8FTUFSO&VSPQF #FTU#BOLJO(FSNBOZ #FTU*OWFTUNFOU#BOLJOUIF6,
Regional and Country Awards in Central and Eastern Europe t
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#FTUBU'9.BOBHFNFOUJO$FOUSBMBOE&BTUFSO Europe #FTUBU3JTL.BOBHFNFOUJO$FOUSBMBOE&BTUFSO Europe #FTU%FCU)PVTFJO$FOUSBMBOE&BTUFSO&VSPQF
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AT A GLANCE
Regional and Country Awards in North America
RESEARCH RANKINGS
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#FTUBU3JTL.BOBHFNFOUJOUIF.JEEMF&BTU #FTUBU'9.BOBHFNFOUJO"TJB #FTU*OWFTUNFOU#BOLJO*OEJB
Global Awards t t t
#FTU#BOL 0WFSBMM #FTU#BOLGPS&RVJUZ3FMBUFE*TTVFT #FTU#BOLGPS%FCU$BQJUBM.BSLFUT
2008 All-America Research Team: Deutsche Bank Ranked No. 9
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2008 All-America Fixed-Income Research Team: Deutsche Bank Ranked No. 9
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#FTU#BOL 0WFSBMM JO8FTUFSO&VSPQF #FTU#BOL 0WFSBMM JO&NFSHJOH&VSPQF #FTU#BOLGPS&RVJUZ3FMBUFE*TTVFTJO Western Europe #FTU#BOLGPS%FCU$BQJUBM.BSLFUTJO Western Europe #FTU#BOLGPS.""EWJTPSZJO Western Europe
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#FTU#BOL 0WFSBMM JO(FSNBOZ #FTUGPS&RVJUZ3FMBUFE*TTVFTJO(FSNBOZ #FTUGPS%FCU$BQJUBM.BSLFUTJO(FSNBOZ #FTU*OWFTUNFOU.BOBHFSJO(FSNBOZ #FTU#BOL 0WFSBMM JO3VTTJB #FTU*OWFTUNFOU.BOBHFSJO3VTTJB
2008 All-Europe Research Team: Deutsche Bank Ranked No. 7 In rankings for Europe’s best research team, Deutsche Bank held steady at seventh. UBS earned the top spot in the rankings for the seventh consecutive year.
ADDITIONAL RANKINGS
GETTING HIRED
Country Awards
Deutsche Bank climbed up from 14th in 2007. Lehman #SPUIFST FWFOUIPVHIJUIBEëMFEGPSCBOLSVQUDZ protection, earned the top spot in the rankings.
THE WORKPLACE
Regional Awards
Deutsche Bank climbed three spots to ninth on the All-America Research Team. Barclays Capital (now incorporating the research team from Lehman Brothers) led the way with 45 positions to retain the top spot.
ON THE JOB
EUROMONEY REAL ESTATE AWARDS 2009
Investor’s annual analysis of research departments on the Street. The rankings are highly regarded and have become a tool for assessing research best practices. Firms are competitively ranked on their ability to research companies BOEBOBMZ[FUSFOET"UUIFTBNFUJNF JOWFTUNFOUCBOLT have become careful to avoid the conflicts of interest and fully separate research activities from deal making.
THE FIRM
The following rankings are from Institutional Regional and Country Awards in Asia and in the Middle East
Deutsche Bank also has fared well in other competitive rankings for corporate achievements: t %FVUTDIF#BOLXBTOVNCFSJOFortune’s 2009 Global 500. It was 26th in 2007 and 35th in 2006. 3BOLFEBTUIFFJHIUI.PTU%FTJSBCMF&NQMPZFSJO SFTFBSDIëSN6OJWFSTVNTTVSWFZPG.#" students interested in investment banking—up two spots from the previous year. WETFEET I NSI DER G UI DE
11
FOR YOUR REFERENCE
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AT A GLANCE
Deutsche Bank in the U.S. Deutsche Bank’s League Table Rankings League table rankings are widely used in invest-
FOR YOUR REFERENCE
GETTING HIRED
THE WORKPLACE
ON THE JOB
THE FIRM
NFOUCBOLJOHDJSDMFTUPBOBMZ[FBOEDPNQBSFCBOLJOHBDUJWJUZBSPVOEUIFXPSMEɨFUBCMFTBSFCBTFEPOBTJOHMF TFUPGHMPCBMMZDPOTJTUFOUDSJUFSJBBOEUSBOTBDUJPODMBTTJëDBUJPOTUIBUCSJOHSFMJBCJMJUZUPBOPUIFSXJTFTVCKFDUJWFBOE ever-changing set of numbers. (Source: thomsonreuters.com) Category
2009 Q2 Rank
2008 Q2 Rank
2009 Q2 Amount ($M)
2009 Market Share
2009 Market Leader
Global high-yield debt
4
6
6,184.9
10.1
Bank of America Merrill Lynch
Global debt, equity & equity-related
5
3
196,668.0
5.6
JPMorgan
U.S. mortgage-backed securities
8
10
3,729.6
5.0
Bank of America Merrill Lynch
Global mortgage-backed securities
8
10
4,768.0
4.5
Bank of America Merrill Lynch
U.S. equity & equity-related
7
10
5,293.6
4.5
JPMorgan
Global equity & equity-related
8
9
15,799.5
4.8
JPMorgan
Global common stock
8
8
14,005.2
4.8
JPMorgan
U.S. convertibles
6
8
1,270.2
8.4
JPMorgan
Worldwide completed M&A
6
9
148,566.8
20.4
Citibank
U.S. targets announced
13
7
9,213.5
3.2
Morgan Stanley
U.S. targets completed
5
7
51,336.5
17.7
Goldman Sachs
European targets announced
3
4
157,621.9
36.3
Goldman Sachs
European targets completed
8
5
91,627.8
26.6
Citibank
A QUICK HISTORY LESSON Regarded as the founder of Deutsche Bank, Adelbert Delbruck was one of a handful of private bankers in the second half of the 19th century who led a traditional banking sector toward new, modern 12
W E T F E E T I N SID ER GU ID E
ways of doing business. When it was founded in 1870, the bank’s charter was to “promote and facilitate trade relations between Germany, other European countries, BOEPWFSTFBTNBSLFUTw*OQBSUJDVMBS UIFCBOLXBT set up to challenge the domination of British banks, XIJDIIBEBëSNIPMEPOUIFëOBODJOHPG(FSNBO foreign trade. That same year, Deutsche Bank began accepting cash deposits. It was a move that, in the German banking world of the time, was considered little short of revolutionary. In addition to creating a broad capital
AT A GLANCE
π DEUTSCHE BANK IN THE NAZI ERA one offered direct resistance to the new Nazi legislation—doing so would have been too dangerous. In fact, in 1943, two Deutsche Bank directors were executed simply for voicing “defeatist” comments. Deutsche Bank has acknowledged its role in Germany’s dark past and has taken steps to ensure this part of the bank’s history is not forgotten or misrepresented.
ON THE JOB
By 1945 Deutsche Bank was not only on the brink of ruin, it had become a tool of the Nazi state. Though bank officials opposed the regime’s ideology, they put up little resistance to the racist goals of the Nazis. By the end of the war, almost all account assets and deposits held by Jewish customers had been transferred to the German Reich under a series of new regime laws. No
THE FIRM 13
FOR YOUR REFERENCE
WETFEET I NSI DER G UI DE
GETTING HIRED
The 1950s were a time of crucial decisions in the ëFMEPGCBOLJOH*OUFSOBUJPOBMJTTVJOHCVTJOFTT UIBU is, issuing credit to corporations and governments) became more important as Germany moved from being a debtor to a creditor nation. Deutsche Bank QMBZFEBOJNQPSUBOUSPMFJOUIJTFWPMVUJPO"NBKPS milestone was the 1958 flotation of a foreign-currency bond for the Anglo-American Corporation of South "GSJDB UIFCBOLTëSTUGPSFJHOCPOETJODF8JUI the flotation of this bond, Deutsche Bank reopened the German bond market to foreign companies. International business played an increasingly TJHOJëDBOUSPMFGPS%FVUTDIF#BOLJOUIFT which marked the beginning of Deutsche Bank’s TUBUVTBTBHMPCBMPSHBOJ[BUJPO/FXCSBODIFTBCSPBE supported this development. Thanks to the evolution PGëOBODJBMNBSLFUT UFDIOPMPHJDBMQSPHSFTT BOEUIF BDRVJTJUJPOPGNBKPSCBOLTJO*UBMZ 4QBJO UIF6, and the U.S., Deutsche Bank has changed more in the past 25 years than it did in the entire preceding century. Since its U.S. debut in 1979, Deutsche Bank has become a well-entrenched Wall Street goliath. In 1999 Deutsche Bank acquired Bankers Trust, and in 2001 the company was listed on the New York Stock
THE WORKPLACE
CBTF UIJTJOOPWBUJWFNPWFëSNMZFTUBCMJTIFEUIF deposit-taking business in Germany. International business was built up steadily, and by 1873 the bank IBEPQFOFEëWFCSBODIFT JO#SFNFO :PLPIBNB Shanghai, Hamburg, and London. This remarkable accomplishment was early evidence of the bank’s clear intentions to establish a global presence. %FVUTDIF#BOLTëSTUEFDBEFTXFSFBQFSJPEPG rapid expansion. Sound commercial prospects were DPNCJOFEXJUIBëSNHSBTQPGSJTL FTQFDJBMMZJOTFDtors that were German strongholds. The bank played a NBKPSQBSUJOUIFEFWFMPQNFOUPG(FSNBOZTFMFDUSJcal-engineering industry, for example, and established a strong presence in iron and steel. A solid base in (FSNBOZQFSNJUUFEUIFëOBODJOHPGCVTJOFTTBCSPBE which kept the bank busy for years; the best-known FYBNQMFPGTVDIëOBODJOHXBTUIF#BHIEBE3BJMXBZ at the turn of the 19th century. In 1929 Deutsche Bank merged with its most powerful rival, Disconto-Gesellschaft, in an effort to reduce costs and keep up with overall industry consolidation. The merger created what was easily Germany’s largest bank. For eight years the combined entity operated under a dual name—Deutsche Bank und Disconto-Gesellschaft—before adopting the simpler and more memorable Deutsche Bank label in 1937. ɨFNFSHFSDBNFKVTUBUUIFCSJOLPGUIFFNFSHing world economic and banking crisis—the most disastrous economic event of the 20th century. Banks XFSFQBSBMZ[FECZBMBDLPGMJRVJEJUZGVFMFECZB combination of short-term foreign debt and borrowers who were no longer able to pay debt. This crisis was followed by a subordination of German banks to the power of the state—a situation that lasted until the end of World War II. The postwar period proved to be the toughest in the bank’s history. In 1945, Deutsche Bank was in real trouble, and in 1947–48, it was broken up into ten banks. But it soon became clear that the division could not be sustained, and in 1957 three PGUIFTFCBOLTSFPSHBOJ[FEUPGPSNUIFQSFTFOUEBZ Deutsche Bank.
AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE
Deutsche Bank in the U.S. Exchange. In 2002 Deutsche Bank concluded its purchase of asset manager Scudder Investments. With the acquisition of Scudder, Deutsche Bank became the fourth-largest asset manager in the world, with leading positions in Europe, Asia, and the U.S. Today, with more than half of the bank’s roughly 79,000 staff working outside Germany, a strong position in Europe, a growing presence in the U.S., and a more determined focus on growth through acquisition and efficiency, Deutsche Bank is one of UIFXPSMETMFBEJOHJOUFSOBUJPOBMëOBODJBMTFSWJDFT institutions.
ORGANIZATION OF THE FIRM
GETTING HIRED
Corporate and Investment Bank The Corporate and Investment Bank (CIB) oversees Deutsche Bank’s capital markets business, including origination, sales, and trading of capital markets products; corporate advisory; corporate lending; and USBOTBDUJPOCBOLJOH$*#JTPSHBOJ[FEJOUPUXPNBJO divisions: Global Markets and Global Banking. GLOBAL MARKETS includes sales, trading, and research in equity, debt, and other products including: t
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VIEW FROM THE TOP Deutsche Bank is a publicly owned corporation headquartered in Frankfurt, Germany. It operates two group divisions:
Corporate and Investment Bank (CIB) Private & Business Clients and Asset Management (PCAM)
FOR YOUR REFERENCE
VIEW FROM THE MIDDLE
Each line of business is led by a group head. These businesses are supported by several corporate infrastructure divisions: Finance, Legal, Risk & Capital, Human Resources, Group Technology & 0QFSBUJPOT BOE$PNNVOJDBUJPOT%FVUTDIF#BOL had offices in 76 countries and close to 79,000 employees as of mid-2009. About 35 percent of Deutsche Bank’s employees (28,056) work in its native home, with the rest spread over Europe (excluding (FSNBOZ
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W E T F E E T I N SID ER GU ID E
Global Markets is headed by Anshu Jain and is %FVUTDIF#BOLTNPTUQSPëUBCMFCVTJOFTT*UTPSHBOJ[BUJPOJTVOJRVFJOUIBUFRVJUZBOEëYFEJODPNFPQFSBtions are combined. Integrated sales teams are assigned UPNBKPSDMJFOUTSBUIFSUIBOPSHBOJ[FEBSPVOEQSPEVDU offerings. Deutsche Bank is among the industry leaders in this approach to client service. (Note: This was not a cost-cutting move.) GLOBAL BANKING, which includes Corporate Finance and Global Transaction Banking, serves the sellers of securities. This includes Fortune 1000 companies, municipalities, and other public entities in need
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THE FIRM
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of cash to fund growth, and private companies looking UPDPNQMFUFJOJUJBMQVCMJDPêFSJOHT *10T CZCVZJOH all the shares or bonds a company has for sale. Global Banking is headed by Michael Cohrs, who KPJOFE%FVUTDIF#BOLJOBGUFSTUJOUTBU(PMENBO Sachs and S.G. Warburg. His approach has been to merge commercial and investment banking, whereby banking teams bundle debt and equity underwriting with loans. *UIBTCFFOBQSPëUBCMFBQQSPBDIGPS%FVUTDIF#BOL*O Europe, Deutsche Bank Corporate Finance is among the UPQUISFFJOWFTUNFOUCBOLJOHëSNT BOEJUTHSPXJOHJO UIF64BOE"TJB1BDJëDSFHJPO The Global Banking business consists of the following coverage and product subgroups:
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15
FOR YOUR REFERENCE
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THE WORKPLACE
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AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE GETTING HIRED FOR YOUR REFERENCE
Deutsche Bank in the U.S. Private Clients and Asset Management (PCAM) PCAM encompasses Deutsche Bank’s Asset Management, Private Wealth Management, and Private & Business Client activities. The PCAM division serves retail and small corporate customers, as well as high-net-worth clients. PCAM also offers asset management services to retail and institutional clients. PCAM is split into two corporate divisions: Private & Business Clients, and Asset and Wealth Management. PRIVATE & BUSINESS CLIENTS (PBC) offers a full range of investment and banking services to JOEJWJEVBMTBOETNBMMUPNJETJ[FCVTJOFTTFTɨFEJWJsion is based primarily in Frankfurt, and operates in three core markets: Germany, Italy, and Spain. Under the leadership of Rainer Neske, it is expanding into emerging markets in Europe and Asia. ASSET & WEALTH MANAGEMENT consists of the Asset Management and Private Wealth Management divisions, which provide investment and traditional banking services to institutional clients, high-net-worth individuals and families, and retail investors. Under the direction of Kevin Parker, the Asset Management division invests approximately $672 billion (as of June 2009) in assets globally on behalf of individual investors, pension funds, corporations, JOTVSBODFDPNQBOJFT BOEOPOQSPëUPSHBOJ[BUJPOT Asset Management groups include: Institutional: 0QFSBUJOHVOEFSUIFOBNF%# Advisors, the institutional business includes equity, ëYFEJODPNF MJRVJEJUZNBOBHFNFOU GVOEBNFOUBM thematic equity, quantitative strategies, and multiasset investments. It serves various clients, including pension funds, corporations, government entities, GPVOEBUJPOT BOEOPOQSPëUT Retail: Asset Management’s global retail business is DWS. Its product range covers all regions and many different forms of investment. DWS is the leading mutual fund manager in Germany, according to the #7* PSUIF'FEFSBM"TTPDJBUJPOPG(FSNBO*OWFTUNFOU Companies). As of 2008, it operates in the U.S. under the name DWS Investments. 16
W E T F E E T I N S ID ER GU ID E
Insurance: Deutsche Bank’s Global Insurance Asset Management is the world’s largest third-party insurance asset manager. Investment capabilities include investment strategy development; client services; portfolio management; advisory services; accounting; and reporting. Alternative Investments, known as RREEF, consists of real estate, infrastructure, and private equity. As one of the largest alternative investment managers globally, RREEF was ranked the largest real estate investment trust (REIT) manager and third-largest real estate equity manager in the U.S. in 2008 by Pensions & Investments. It was also ranked fourthlargest alternative investments manager in 2008 by Global Investor Watson Wyatt Alternatives Survey. The Private Wealth Management division provides wealthy individuals and families and selected institutions worldwide with banking, investment NBOBHFNFOU BEWJTPSZ BOEëEVDJBSZTFSWJDFTɨF division is led by Pierre de Weck and employs more than 4,000 people in 113 offices in 31 countries.
Infrastructure The above divisions are supported by several corporate infrastructure functions, which serve as the backbone of Deutsche Bank’s day-to-day business and allow it to maintain high global standards. Just a few of these functions are Human Resources; Finance; Legal, Risk & Capital (LRC); and Group 5FDIOPMPHZ0QFSBUJPOT (50 Human Resources works to make sure Deutsche Bank has the people power necessary to operate its global business. The bank’s primary competitive advantage is its intellectual capital, so attracting the best and brightest and fueling their passion is vital. 'JOBODFBEWJTFTTFOJPSNBOBHFNFOUPOUIFëOBOcial state and performance of all areas of the bank. ɨJTEJWJTJPOPWFSTFFTUIFëOBODJBMEFUBJMTPGUIF bank, from making sure trades are booked accurately to setting budgets for all bank divisions. ɨFCBOLSFGFSTUP(50BTJUT%/"CFDBVTFJU provides the processes and systems necessary to survive in today’s lightening-speed markets. The bank
BACK TO BASICS When the market was thriving, investors looked to get high returns from complex and sometimes risky investments—including the complex derivatives that MBUFSJNQMPEFEɨFDVSSFOUëOBODJBMDMJNBUF IPXFWFS has brought about a return to basics such as credit trading, foreign exchange and U.S. bonds. These not only perform more reliably, they offer customers more liquidity if they want to pull out quickly.
TRANSPARENCY IS KEY
INSIDER SCOOP “It could be that, because our clients are concerned about paying off securities and derivatives, more transparency will create more client activity.”
THE WORKPLACE
In the new regulatory climate, banks are being forced to operate with greater transparency. Though the actual impact is unclear at this stage, Deutsche Bank is cautiously welcoming these changes, which it thinks could make it more attractive to its customer base.
ON THE JOB GETTING HIRED
For a long time, career growth at Deutsche Bank has meant a promotion to the next level of responsibility. But now the focus is shifting toward career growth through personal development—by developing individual capabilities and expanding knowledge and expertise—along with recognition of employees’ abilities, know-how, and personal strengths. It doesn’t matter whether the accolades come from Deutsche Bank clients, colleagues, or division leaders. The key is that everyone has the chance, in every phase of his or her career, to take on challenging tasks and grow through successfully completing them. ɨFëSNCFMJFWFTFNQMPZFFTXIPRVJDLMZBTTVNF increased responsibility place less emphasis on titles and status symbols. Deutsche Bank employees are encouraged to focus on increasing ownership of their work. An employee’s place in the bank will correspond to his or her professional ability. The bank aspires to create a high-trust workplace and consult employees on issues that affect them as part of its effort to create an atmosphere where people at all levels are able to make things happen.
WHAT’S HOT
THE FIRM
VIEW FROM THE BOTTOM
AT A GLANCE
needs to be able to process each transaction with DPOëEFODFBOEFïDJFOUJOGSBTUSVDUVSF UFDIOPMPHZ and operations help achieve this feat. Meanwhile, LRC has the role of identifying and NJOJNJ[JOHUIFSJTLTUIBU%FVUTDIF#BOLJTFYQPTFE to, from credit losses and market volatility to infrastructure outages and legal matters.
INSIDER SCOOP “This is the firm where you can be creative and ambitious. It’s a place where you aren’t held back by processes and bureaucracies. You can change the culture here for the better— Deutsche welcomes it.”
FOR YOUR REFERENCE
WETFEET I NSI DER G UIDE
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AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE GETTING HIRED
Deutsche Bank in the U.S. PURSUIT OF THE CUTTING EDGE *OUPEBZTIJHIUFDIëOBODJBMXPSME BTQMJUTFDPOE of computer time can make the difference between BTVDDFTTGVMUSBEFBOEBGBJMFEPOFɨBUTKVTU POFSFBTPOJUTJNQPSUBOUGPSBMFBEJOHëSNTVDI as Deutsche Bank to stay on top of information technology. “The competitive advantage brought by UFDIOPMPHZBOEPQFSBUJPOTJTHPJOHHFPNFUSJD wTBZTB managing director in the bank’s Group Technology & 0QFSBUJPOT (50 BSN*OUIFQBTU *5XBTWFSUJDBMMZ integrated within individual divisions. Now Deutsche Bank is working to integrate these functions across its main divisions.
INSIDER SCOOP “We’re aiming for an off-the-charts coolness factor. When you build platform services, you’re competing against Google and Oracle. You want to create an environment where people get jazzed.”
BUSINESS IN THE FAR EAST -JLFNBOZPGUIFPUIFSUPQHMPCBMëOBODJBM JOTUJUVUJPOT %FVUTDIF#BOLIBTSFDPHOJ[FE"TJB 1BDJëDBTBSFHJPOQSJNFEGPSHSPXUI*O)POH,POH the bank plans to add 2,500 workers from mid-2008 until 2010, upping its workforce in the region to "OEJUTOPUKVTU)POH,POHXIFSF%FVUTDIF Bank is making inroads—it’s the entire Far East, which includes China, Pakistan, India, New Zealand, Australia and other countries. In March 2008, it increased its equity stake in Hua Xia Bank Bank from 9.9 percent to approximately 13.7 percent of issued DBQJUBM*OUIFëSTUIBMGPG JUBMTPPQFOFETVC CSBODIFTJO#FJKJOHBOE4IBOHIBJUIBUBSFOPXQBSUPG Deutsche Bank China.
FOR YOUR REFERENCE
GLOBAL CASH PAYMENT SYSTEM Deutsche Bank wants its customers to be able to conduct business seamlessly. The launch of a new HMPCBMDBTIQBZNFOUTZTUFN '9$BTI BMMPXTëOBODJBM institutions to execute cross-currency payments easily and effectively. The innovative system allows Deutsche 18
W E T F E E T I N SID ER GU ID E
Bank customers to change 18 funding currencies to more than 75 local currencies via wire, check, and automated clearinghouse. The FX payment product JTKVTUUIFMBUFTUBEWBODFNFOUNBEFCZUIFCBOLT successful foreign exchange (FX) group.
MINI MOMA Walk into any Deutsche Bank workspace and you can’t help but notice the contemporary art on the walls. Sophisticated and tasteful, the works line the hallways BOETVSSPVOEDVCJDMFTZPVMMFWFOëOEBGFXQJFDFT competing with the flashing ticker and computer screens on the trading floor. If you take a closer look, you’ll see the art is original and signed by renowned artists such as Francis Bacon, Gerhard Richter, and Joseph Beuys. The bank started the impressive collection in 1979 with works on paper by modernist artists, and now focuses on artists working after 1945. With 50,000 works, Deutsche Bank has amassed the largest corporate collection of contemporary art in the world.
AT A GLANCE
THE FIRM
ON THE JOB
THE WORKPLACE
GETTING HIRED
FOR YOUR REFERENCE
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On the Job
3
Global Markets. ............................ 22 Research ........................................ 26 Global Banking ............................. 27 Asset Management ........................ 28 Finance ......................................... 30 Group Technology & Operations.. 32
AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE GETTING HIRED FOR YOUR REFERENCE
Deutsche Bank in the U.S.
GLOBAL MARKETS Deutsche Bank’s Global Markets division IBOEMFTTBMFTBOEUSBEJOHPGëYFEJODPNFTFDVSJUJFT equities, foreign exchange, commodities, and derivatives. Globally, Deutsche Bank has consistently been a top player when it comes to selling and trading these products. For example, the bank was voted 8PSMET#FTU'9#BOLGPSUIFëGUIDPOTFDVUJWFZFBSJO Euromoney’s 2009 FX Survey. (MPCBM.BSLFUTQSPWJEFTEFCUëOBODJOHTFSWJDFTUP NPSFUIBO DPSQPSBUJPOT ëOBODJBMJOTUJUVUJPOT and governments. The division also has strong working relationships with nearly every central bank and more than 90 percent of the world’s top 1,000 companies. i0OBOZHJWFOEBZ UFOTPGCJMMJPOTPGOBUJPOBMEPMMBST QBTTUISPVHIPVSEFTL wTBZTBëYFEJODPNFBTTPDJate. “The margin for error is small. Consequently, the atmosphere tends to be intense during market hours. ɨFKPCJTDIBMMFOHJOH UIFTUSFTTJTDPNNFOTVSBUF CVU JUJTVMUJNBUFMZTBUJTGZJOHw Deutsche Bank’s claim to fame is the pioneering of new products and techniques, especially in the fastNPWJOHXPSMEPGEFSJWBUJWFT"TBMFBO ëOFMZUVOFE machine, this division offers opportunities perceived as cutting-edge. “We move around fast in Global .BSLFUT wTBZTBEFSJWBUJWFTJOTJEFSi"CJHQBSUPGUIF KPCJTTUBZJOHPOUPQPGOFXUFDIOJRVFTBOEJEFBTw:PV must be highly motivated to work in this division, and able to thrive in a high-risk, high-reward environment. The Global Markets division operates in every DPVOUSZUIBUIBTBëOBODJBMNBSLFU8JUIBQQSPYJmately 6,000 employees, it has trading floors in 39 DPVOUSJFT JODMVEJOH$IJOB #SB[JM *OEPOFTJB 3VTTJB and South Africa. MBAs and undergraduates are hired into the Global Markets division as associates and analysts, SFTQFDUJWFMZ.PTUPGUIFUSBJOJOHJTDVTUPNJ[FEGPS individual teams and prepares analysts and associates for the required Series 7 and 63 licensing exams. 22
W E T F E E T I N SID ER GU ID E
INSIDER SCOOP “You need high levels of energy in Global Markets; you need to be aggressive. You have to have a bent for redesigning and maintaining a business, and the ability to come back from failures.
TYPICAL RESPONSIBILITIES Global Markets’ combined debt/equity platform allows associates and analysts to rotate across the full debt/ equity sales and trading platform. After that, you will CFQMBDFEJOBNPSFJOEJWJEVBMJ[FESPMF "TBOBTTPDJBUF ZPVMMTQFDJBMJ[FJOTBMFTBOEUSBEJOH instruments. Whether you’re involved in sales, origination, research, or trading, you’ll become intimate with GPSFJHOFYDIBOHF EFCUDBQJUBMNBSLFUT NPSUHBHFT 05$ derivatives, integrated credit, money markets, futures and options, and metals and commodities. Generally, ZPVMMBOBMZ[FNBSLFUBOEFDPOPNJDUSFOET NBLF recommendations on Deutsche Bank’s market position, manage risk, and participate in team presentations to new clients. Sales and trading roles are especially attractive to people who love to sell and make money.
INSIDER SCOOP The pace of a trading floor is different from other work environments. We don’t want people who are just happy to do well, but who have a deeply rooted competitive nature.” As an analyst, you might take on a sales, trading, or research role in such areas as the institutional client HSPVQ 05$EFSJWBUJWFT GPSFJHOFYDIBOHF PSFNFSHing markets. If you’re part of the debt capital markets team, you could work on covering U.S. and Latin "NFSJDBODPSQPSBUJPOT ëOBODJBMJOTUJUVUJPOT BOE BHFODJFTGPSBMMPGUIFJSëYFEJODPNFSFRVJSFNFOUT"O equities structuring analyst will price equity structures BOEBOBMZ[FUIFJSSJTLT BTTJTUJOUIFQSFQBSBUJPOPG term sheets, and perform backtests and analyses of new TUSVDUVSFT*GZPVXPSLPOUIFTFDVSJUJ[FEQSPEVDUT UFBN ZPVMMCFJOWPMWFEJOëOBODJBMNPEFMJOHBOE mathematical analysis, portfolio valuation, and interaction with trading floors and clients.
Leave for my 15-minute walk from Tribeca to the office. Try to clear my head and avoid the BlackBerry.
Attend group’s morning meeting. Listen to brief updates from London credit desk, U.S. credit desk, foreign exchange, and DPNNPEJUJFTHSPVQT(JWFëWFNJOVUF recap of the prior week’s developments in the interest-rate market and client flows. Back at the desk and catch up on current market conditions and events for the day ahead. Check out headlines on Bloomberg and Reuters and read trading-desk morning commentary. Debate with my boss about the possible market reaction if upcoming economic data is weaker than expected.
0OFPGUIFDMJFOUDBMMTSFTVMUTJOBO energy company leaving us an order on a structured trade, which we have been showing them for several weeks. Reprice the trade and determine it’s well below current levels, but communicate the details to the relevant trading desks anyway. We will watch the order over the course of the day.
Start work on a presentation for an introductory meeting with the treasurer of an industrial company, scheduled for two days from now. (I’m usually out of the office visiting clients one day a week.) 1VMMUIFJSëOBODJBMTBOEMPPLGPSJEFBT Company has less floating-rate debt than their stated benchmark so I work up an analysis on swaps to floating.
Take incoming call from a utility company looking to execute a trade. Get internal approvals and pricing in record time from two trading desks, and show a live price. Win the trade in competition and make sure post-trade booking goes smoothly.
Back to my presentation, which is interrupted intermittently by WETFEET INSI DER G UIDE
23
FOR YOUR REFERENCE
Economic data release is indeed weaker than forecast and the market moves TJHOJëDBOUMZ$BMMUSBEJOHEFTLUPHFU color on flows, then write out quick list of clients to call and discuss implications of the recent move.
GETTING HIRED
Run to the deli around the corner to grab a sandwich and an iced tea; our internal cafeteria is good, but I make it a point to go outside at least once a day. Back to the desk to eat, catch up on market news and chat about trade ideas with colleagues.
THE WORKPLACE
Conference call with the treasurer and assistant of an energy company about NPOFUJ[JOHTPNFEJTUSFTTFEDSFEJUBTTFUT This asset class isn’t my specialty, but crossselling other Global Markets products is an important aspect of corporate coverage. Lengthy follow-up call with internal credit trading desk after.
ON THE JOB
Wake up and check Bloomberg on my BlackBerry to see what happened in the market overnight in Asia and Europe. Shower and get dressed.
Conference call with the assistant of a VUJMJUZDPNQBOZBCPVUTXBQQJOHëYFE rate debt to floating. The focus of the call shifts to accounting for corporate derivatives—not the sexiest discussion topic, but one that is a critical part of their decision-making.
THE FIRM
AT A GLANCE
A DAY IN THE LIFE OF A DEBT CAPITAL MARKETS VP
AT A GLANCE
Deutsche Bank in the U.S.
THE FIRM
GETTING HIRED
THE WORKPLACE
ON THE JOB
FOR YOUR REFERENCE
the requests will be from Asia or Europe asking for structures on U.S. underlyings. *TFUVQBMMUIFQSJDJOHNPEFMTBOEDPOëSN the parameters with the traders to make sure that we are good to go.
conversations with a few clients over the phone, email, and Bloomberg.
Send end-of-day update email to energy client whose order from the morning we XFSFVOBCMFUPëMM4FOEBGFXPUIFSDMPTJOH update emails to clients who are monitoring the market on a day-to-day basis. Attend weekly desk meeting where each marketer discusses client situations and themes that might be useful for the rest of the group. Given the yield-curve environment, clients across the desk are interested in swaps to floating; we share new ideas and analytics to make the case. Tie up loose ends and rush out a bit early in time for a 7 p.m. soccer game. I’m leaving early: my usual departure time is between 6:30 and 7 p.m.
Finally done with most of the live requests and I head down to the cafeteria to get an early lunch. I bring it back to the desk and DBUDIVQPOBOZNBKPSOFXTSFMFBTFTPO Bloomberg.
The focus of the pricing now turns to the U.S. retail and institutional clients. I will typically discuss with the sales team the TQFDJëDTPGUIFTUSVDUVSFUIBUUIFZXBOUUP price, going over the term sheets to make sure that we captured all the details. Again, however, there can be many iterations before we reach one we can trade.
The client requests a new structure that we have not priced before. We set up the model, run the risks, and work with the traders to come up with the appropriate parameters.
"MJUUMFCJUPGEPXOUJNF TP*USZUPëOF tune a pricing model that I had used a few days ago. I run through several trials while modifying some of the options to arrive at UIFTQFDJëDBUJPOUIBU*XBOU
A DAY IN THE LIFE OF AN EQUITIES STRUCTURING ANALYST
It’s morning again and I wake up and take a quick shower. After eating some cereal for breakfast, it’s time to head out to the office for the packed day ahead.
Arrive at the office and turn on #MPPNCFSHBOE3FVUFST*ëSTUDIFDL GPSBOZNBKPSPWFSOJHIUOFXTBOEUIFO turn my attention to how the Asian and European markets have performed. Then I gauge the U.S. futures and the rates markets to get an idea of how certain structures might price up differently due to the changes.
24
4JGUUISPVHIUIFFNBJMUPëOEBMMUIF trading requests that are going to go live once the markets open. Many of
W E T F E E T I N SID ER GU ID E
Markets open and we refresh all the prices to send out to the clients. The process can be an ongoing feedback loop in which the client may want a different variation or they want us to match the price of the competitor. The live pricings typically take up the bulk of the morning, as requests DBODPOUJOVFUPëMUFSJO
We start to price some structures for Asia, setting trading levels that will hold overnight and strike when the market opens. If there are a lot of requests, it can be a long night; we cannot begin to price these until the markets close.
A quick team meeting to go over some of the products that have traded recently. We discuss new ideas that we may want to push to clients in Asia or Latin America.
Most of the people on the floor are gone. And now I’m leaving, too.
A DAY IN THE LIFE OF A FOREIGN EXCHANGE SALES ANALYST Wake up and get ready—as fast as possible! Thankfully I live close to work, so it only takes 10 minutes to get to the office.
Morning meeting with strategists and traders. We go over important overnight news and the important events to watch out for today. At this point in the day, the desk is fully staffed.
Grab a quick breakfast. There’s a pantry on the floor where they sell coffee, bagels, and hot oatmeal.
Client calls in and wants to do three trades: buy CHFSEK, sell AUDUSD and sell USDJPY all to settle spot. The CHFSEK and USDJPY are small trades, under 1 million notional, so I use our electronic trading platform for those. The AUDUSD is greater than 1 million notional so I shout over to the trader for a price. The AUD trader yells back his price, which is good for about three WETFEET INSI DER G UIDE
25
FOR YOUR REFERENCE
Begin writing morning update on overnight news using internal research, discussions with the London sales team, and Bloomberg. I chat with an analyst in London about how the markets did while I was sleeping, and where we think the market will go for the rest of the day. Here’s a line from today’s morning update: “The Australian dollar depreciated against the U.S. dollar by nearly 1 percent after the Reserve Bank of Australia (RBA) held rates (expected by market) but maintained a neutral stance for futureBDUJPOw7JB Bloomberg chats, I post my morning update to clients.
GETTING HIRED
Back to the desk. Luckily there weren’t too many requests today. I turn my attention UPPUIFSQSPKFDUT*XBOUUPëOJTITVDIBT BOBMZ[JOHQPUFOUJBMUSBEFTPSQFSGPSNJOH backtests of structures.
THE WORKPLACE
The closing bell rings; the markets are closed. The trading floor quiets down noticeably, and I go out to get some coffee with a fellow analyst on the desk.
Walk into the office and create the morning research packet, which is distributed to sales, trading, and TUSVDUVSJOH+VTUUIFKVOJPSQFPQMFBSFJO at this hour, all drinking coffee to wake up and get ready for another busy day.
ON THE JOB
THE FIRM
Markets are going to close soon, and we CFHJOUPIFBSCBDLGSPNTBMFTUIFëOBM volume for trades striking at the end of the day. We run through the Greeks and the risks of the structures with the traders, making sure that they hedge their QPTJUJPOTDPSSFDUMZ &BDIi(SFFLwSFGFSTUP how a change in an underlying parameter could change the risk or value of a trade.)
AT A GLANCE
AT A GLANCE
seconds, and the client (quickly) agrees. Now I must book the AUDUSD into our system so the risk appears in the trader’s book. Thankfully, the trades executed on our electronic platform book automatically, so I simply need to update the counterparty information.
FOR YOUR REFERENCE
GETTING HIRED
THE WORKPLACE
ON THE JOB
THE FIRM
Deutsche Bank in the U.S.
Another client, on Bloomberg chat, asks for an option price. I enter the information into our options pricer and export it to the options trader, copying the exact client request over to a Bloomberg chat that the sales team has with the options traders. That way, if there is confusion over the option details, the trader can look either at the exported option details or the Bloomberg chat. For the rest of the morning, I execute a lot more spot trades, where clients call in on the phone or contact me by Bloomberg chat. Half of them are small and I can give them a price off our electronic platform, but for the other half, I need to shout over to the spot traders to get the prices from them. At noon, I eat lunch at my desk.
A client Bloomberg-messages a price request for 10 swaps. I talk to the forwards traders to get the best price for the largest notionals. The client is based out on the West Coast so I speak to the more senior salespeople in San Francisco to TUSBUFHJ[F*ëMMPVUUIF&YDFMTIFFUXJUI the appropriate prices and Bloombergmessage it back to the client.
Client Bloomberg-messages back stating we won the swaps! I tell the traders we are done on those prices and they tell NFXIBUTQPUQSJDFUPVTF*ëMMPVUUIF spreadsheet with the correct spot rates and
26
W E T F E E T I N S ID ER GU ID E
all-in prices. After I send that back to the client, I begin booking in our systems.
Begin end-of-day recap. Also begin writing a daily summary to be sent to clients and other sales people around the XPSME*TQFBLUPUIFKVOJPSQFPQMFPO both the structured desk and the corporate one, in order to get the aggregate numbers and deals.
Go home and work out. It’s early to bed for me every night unless we have a client event. Two weeks ago we took clients to a wine-tasting event. It was a great way to meet a large number of clients at once BOEIFBSUIFJSWJFXTPOUIFJSëSNTBOE the markets. It’s very important to put a face to a name, especially when a lot of transactions are conveyed via Bloomberg or phone.
RESEARCH In the late 1990s, the investment banking research analyst role went from back office to center stage. A nod from certain analysts could make or break a company’s stock, and this visibility began to raise FZFCSPXT%JEUIFCBOLFSTXIPëOBODFEEFBMTFYFSU UPPNVDIJOìVFODFPOSFTFBSDIBOBMZTUT XIPTFKPC JUXBTUPDSFBUFPCKFDUJWFSBOLJOHT /FX:PSL4UBUF "UUPSOFZ(FOFSBM&MJPU4QJU[FSBOEUIF4&$MBVODIFE investigations into activities at the larger investment banks. Without admitting wrongdoing, many of the CBOLT JODMVEJOH%FVUTDIF#BOL QBJEIVHFëOFT In response, Deutsche Bank set up an airtight research process. Its research function is housed in Global Markets, with a clear delineation between banking and research. Communications between the two departments are rigidly chaperoned to comply with SEC regulations. When a banking client puts
and governments raise cash to fund growth. Services and products include loans, corporate advisory on ."BOEEJWFTUNFOUT BOETVQQPSUGPS*10TBOE capital market transactions. Payment solutions for DPNQBOJFTBOEëOBODJBMJOTUJUVUJPOT USBEFBOEFYQPSU ëOBODF BOEBSBOHFPGBENJOJTUSBUJWFTFSWJDFTGPSEFCU and equity securities are also offered. Working here will give you valuable exposure to the IJHITUBLFTXPSMEPG*10T QSJWBUJ[BUJPOT BOENFSHFST and acquisitions. But with the adrenaline high that comes with this deal-driven work are hours hunched CFIJOEBDPNQVUFS QPSJOHPWFSëOBODJBMTUBUFNFOUT and churning out spreadsheets by the pound. You’ll need an abundance of personal ambition to work in this part of banking.
INSIDER SCOOP “As a junior resource at a large bank, there’s something to be said for the experience of the people who are more senior than you. But people do put a lot of weight on the input of every member of the team. If you think there’s a better way of analyzing something, that’s absolutely encouraged.”
WETFEET INSI DER G UIDE
27
FOR YOUR REFERENCE
MBAs are recruited as associates. After a customJ[FEUSBJOJOHQSPHSBN UIFZBSFQMBDFEJOUIFBTTPDJBUF development program (ADP) where they amass exposure to a variety of industries and products. The ADP gives associates the unique opportunity to determine UIFJSTQFDJëDJOUFSFTUT"GUFSUIF"%1UFOVSF FBDI associate is assigned to an industry or product group. Undergraduates are recruited for a two-year analyst
GETTING HIRED
Research analysts provide independent analysis and research of markets and overall economic trends. They XPSLJOUFBNTPGGPVSPSëWFUPDPOEVDUQSJNBSZBOE secondary research on companies, industries, and markets, evaluating investment potential, and creating recommendations that can influence pricing decisions. *UTBEFNBOEJOHKPCXJUIBDPOTUBOUMFBSOJOH curve: The more time a researcher spends investigating an industry, the more likely he or she will be able to EFMJWFSBOJNQPSUBOUëOEJOH
The Global Banking division helps corporations
THE WORKPLACE
TYPICAL RESPONSIBILITIES
GLOBAL BANKING
ON THE JOB
“Research analysts feel no pressure to be influenced by anything but their own research. At other bulge-bracket banks they don’t yet have a clear protocol, which makes the day-today work challenging. Not so here at Deutsche Bank.”
INSIDER SCOOP “If you can make six critical research calls a year, that’s career-defining.”
THE FIRM
INSIDER SCOOP
AT A GLANCE
UPHFUIFSBëOBODJOHEFBM UIFSFTFBSDIEFQBSUNFOUHFUT cordoned off so no inside information can be transmitted from one department to another. The bank even IBTPïDFSTXIPTFKPCJTUPNBJOUBJOUIFJOUFHSJUZPG the process. Deutsche Bank takes an approach it refers to as iGVOEBNFOUBMPSJFOUFEwSFTFBSDI3BUIFSUIBOBUUFNQU to cover all companies, or all industries, Deutsche Bank goes for a deeper understanding of a particular industry and provides analysis otherwise lacking on Wall Street. Case in point: In the biotechnology industry, there are more than 60 disease areas in which companies are developing products. Deutsche Bank’s approach is to be the expert in 10 to 12 of those areas. While many investment banks recruit experienced midcareer candidates for research, Deutsche Bank brings undergraduates, MBAs, and PhDs in through its graduate programs. Research associates come in through the bank-wide MBA associate training program in sales and trading. ɨPTFXIPKPJOSFTFBSDIPGUFOëOEJUQSPWJEFT excellent experience for other roles in venture capital, in private equity, or within companies.
AT A GLANCE
Deutsche Bank in the U.S. training program. After two years, most analysts return to school to pursue an MBA. Top performers may be invited to continue for a third year.
More conference calls and meetings.
By the early evening I get a good sense of what I will need to do before leaving for the day. For a break, I spend an hour-long at the gym down the block.
0SEFSEJOOFSPOi4FBNMFTT8FC wBO online delivery food service. The bank covers $20 for dinner per day for those of us who work late
If I’m busy, I’ll eat dinner at my desk so I can crank out work as efficiently as possible. Tonight’s relatively relaxed, though, so I take a 30-minute break to eat with some of my colleagues.
ON THE JOB
THE FIRM
TYPICAL RESPONSIBILITIES You’ll work on teams that provide strategic advice on takeovers, mergers and acquisitions, disposals, and restructures; create and execute fundraising plans UISPVHI*10T EFWFMPQBOFYQFSUJTFJOBOJOEVTUSZ such as technology, telecommunications, or energy and VUJMJUJFT BOEBSSBOHFTUSBUFHJDëOBODJOHGPSNFSHFST or acquisitions through debt restructuring, risk management, and transaction banking services. You’ll also be expected to develop and maintain long-term relationships with senior executives in corporations and governments, regionally and globally.
GETTING HIRED
THE WORKPLACE
A DAY IN THE LIFE OF AN INVESTMENT BANKING ANALYST
Wake up, turn on CNBC, and get ready for the day.
Leave home for my 20-minute commute.
Arrive at work and check email. I look through automated news emails I receive daily to see if there is any news about companies I’m currently working with.
Pick up breakfast with a couple of colleagues from my group. If things are not too hectic, like today, we sit down and eat together.
The morning is full of conference calls and meetings.
Finish up and head home.
ASSET MANAGEMENT Asset Management provides investment products and services for individual investors, pension funds, insurance companies, corporations, endowments, local government authorities, and charities. The investment team is linked globally, with investment managers in 25 locations across the world, including Singapore, Frankfurt, New York, and Zurich. Deutsche Bank recruits MBA candidates into Asset Management through the bank-wide associate training program.
FOR YOUR REFERENCE
INSIDER SCOOP
Lunchtime. I bring lunch back to my desk UPEBZ0OBTMPXFSEBZ *NJHIUIBWFBNPSF relaxed lunch break with a colleague from my group or another group in the bank.
28
W E T F E E T I N SID ER GU ID E
“Deutsche’s commitment to the asset management business is unwavering—there’s no hint that Frankfurt and Joe Ackermann aren’t committed to it. As an undergrad or a graduate, that has to play a role in your job decision.”
Leave for work—I only live seven blocks away from 345 Park Ave, so my doorto-desk commute is a mere ten minutes! I read the front page of The Wall Street Journal while walking. $IFDLPWFSOJHIUCBUDIKPCTUPNBLFTVSF USBEFëMFTIBWFCFFOHFOFSBUFECZUIF PQUJNJ[FSBOEUIBUBMMEBUBTPVSDFTBSF complete and accurate. Contact the IT team to resolve any issues.
Coffee break. Hit up the Starbucks across the street with a few team members and chat.
Morning cash and derivatives reports come in via email. I update our accounting system with this data. Based on the cash inflows and outflows, I trade the futures necessary to maintain the correct hedge ratio.
Respond to the emails that have come in overnight or while I was trading in the morning.
It’s a Wednesday, so I go to my Pilates class, then grab a sandwich on the way back to NZEFTL0ONPTUEBZT UIPVHI *IBWF lunch with colleagues. Since our office is in midtown, there are plenty of options.
Get an update from the broker regarding the status of the trade via Bloomberg instant message. Sometimes it’s necessary for me to respond, but not today.
8PSLPOPOHPJOHTJEFQSPKFDUTSFTFBSDI process improvement, testing of new system features, generating performance reports. Today my research consists of reading industry and academic papers, but WETFEET INSI DER G UIDE
29
FOR YOUR REFERENCE
Confer with the other portfolio managers on my team to determine who is trading which models. Begin reviewing trades to DPOëSNUIBUUIFPQUJNJ[FETPMVUJPONFFUT UIFNPEFMPCKFDUJWFTBOEDPOTUSBJOUT
Determine which sell-side broker to trade with, contact him to ensure he is ready to receive a trade, and submit the order. He DPOëSNTUIFCVZTBOETFMMTPOIJTFOEBOE performs some checks of his own, then we establish a trade strike time.
GETTING HIRED
Wake up and flip on CNBC. In the morning, I always have it on in the background to catch up on what’s happened overnight and refresh myself about what’s coming up that day.
THE WORKPLACE
"UFBNNFNCFSGVMMZDIFDLTUIFëOBMJ[FE trade list: There must be logical reasons for any trade overrides, and mistakes are not tolerated. Generate and send all reports regarding trade to compliance and to my team.
ON THE JOB
A DAY IN THE LIFE OF A QUANTITATIVE STRATEGIES PORTFOLIO MANAGEMENT ASSOCIATE
THE FIRM
You’ll work with clients that include pension funds, insurance companies, corporations, local governments, and charities in one of three distinct career paths: investment management, sales/client services, or business management. Investment management professionals manage portfolios, conducting the research and quantitative analysis to make educated decisions on behalf of institutional and retail clients. Sales/client-services professionals identify potential DMJFOUTBOEIFMQUIFNNFFUUIFJSJOWFTUNFOUPCKFDUJWFT Business-management professionals direct and support internal daily operations.
AT A GLANCE
TYPICAL RESPONSIBILITIES
AT A GLANCE
Deutsche Bank in the U.S. it can also involve writing code in Matlab or SAS to test ideas and brainstorming with my teammates.
FINANCE The Finance division PWFSTFFTUIFëOBODJBM
Brief team meeting (sometimes at Starbucks for more coffee) to review issues with the EBZTUSBEFT DPOëSNXIJDINPEFMTXJMMCF traded tomorrow, and discuss the status of POHPJOHQSPKFDUT
Trade is complete by now, so the broker TFOETFYFDVUJPOëMFTBOEBQPTUUSBEF report. I upload this information into our 5SBEF0SEFS.BOBHFNFOUTZTUFNBOE DPNQMFUFUIFQSPDFTTUPëMFUIFUSBEF
Final cash reports come in, which I again upload to our accounting system, and trade the futures necessary to manage the day’s flows.
3FDPODJMFBDDPVOUTJ[FTBOEDBMDVMBUFUIF proper amount for the accounts that are scheduled to trade tomorrow. I set these TJ[FTJOUIFQPSUGPMJPNBOBHFNFOUTZTUFN so that they are incorporated into the PWFSOJHIUPQUJNJ[FSSVOT
The end is near. I wrap up the stuff I’m JOUIFNJEEMFPGUSBEFDPOëSNBUJPOT QSPKFDUXPSL FNBJMT
Some nights, I hit the gym and then EFDPNQSFTTXJUI%73BOEBHMBTTPGXJOF But tonight I’m headed out with some coworkers for drinks and dinner.
FOR YOUR REFERENCE
GETTING HIRED
THE WORKPLACE
ON THE JOB
THE FIRM
30
W E T F E E T I N SID ER GU ID E
details of the bank, from the micro level (such as making sure trades are booked accurately) to the macro level (such as setting budgets for all bank EJWJTJPOT *UUSBDLTUIFCBOLTëOBODFT PWFSTFFJOHUIF P&L and balance sheet for everything from individual departments and trading desks to Deutsche Bank as a whole. Members of this group advise senior NBOBHFNFOUPOUIFëOBODJBMTUBUFBOEQFSGPSNBODFPG all areas of the bank, as well as on ways to lower costs, NBOBHFSJTL BOEJODSFBTFëOBODJBMQFSGPSNBODF BOE GPSFDBTUëOBODJBMQFSGPSNBODFBOECVEHFUBSZOFFET They also deliver information to external entities such as shareholders, creditors, tax authorities, regulatory authorities, and auditors.
TYPICAL RESPONSIBILITIES "UUIFFOUSZMFWFM ZPVMMCFBTTJHOFEUPBTQFDJëD department or sales or trading desk, producing daily P&L reports, checking the accuracy of bookings, creating reports assessing risk or whether the products they’re overseeing are priced properly given market conditions, updating balance sheets, and so on. As you become more senior, you’ll oversee more areas of the bank, develop annual business plans and budgets, and advise management on overall business strategy, risk management, and reporting processes.
A DAY IN THE LIFE OF A FINANCE ANALYST
Wake up, very glad that I went to bed early the prior night. I try to go to bed early, so that I can run in the morning.
I make my way to the Hudson River Park for a run (one of the many perks of living downtown). I run seven miles, which makes me feel pretty good. I plan on running a marathon in the late fall.
Stopped at the cafeteria, which got me into work a tad bit later than I’d like; however, nothing too bad. I check my email as I eat. My morning schedule is pretty bad, but after that I should be okay.
Time to grab lunch. Gyros at the cafeteria today, so it looks like I won’t be eating healthy. While I like to go out a few times a week, I’m eating at my desk today. .ZëOBODFNBOBHFSBEWJTFTNFUIBUUIF report is ready to go out. I ask that he wait, so I can shore up a piece of commentary on the tracking error. Unfortunately, the dispersion between Asian and U.S./E.U. markets caused some divergence in our hedges-versus-seed capital.
After I input the price into my weekly P&L, I advise a colleague who works for the portfolio manager in charge of
My portfolio manager (PM) calls me back. He reviews my hypothesis on dispersion BOEWFSJëFTUIFIZQPUIFTJT8FDMFBSVQ the wording, and the report is ready to go out. After getting seriously off-topic XJUIUIF1. *ESPQNZëOBODFNBOBHFS a note to send out the report. I perform the pilgrimage several blocks up the street to another DB building almost daily to see the PM. This is a fairly new report, and hopefully it eases risk management’s WETFEET I NSI DER G UI DE
31
FOR YOUR REFERENCE
My colleague in Luxembourg returns my call, and advises me to call our custodian. (I am really getting passed around today!) Luckily, I have access to the custodian’s XFCTJUF XIFSF*PCUBJOUIF/FU"TTFU7BMVF (i.e., pricing), among other pieces of data.
GETTING HIRED
"GUFSëOJTIJOHBSFWJFXPGPVSSJTLSFQPSU *QBTTUIFSFQPSUPêUPBëOBODFNBOBHFS for his oversight. While I carry out such work as a member of the analytics team, it JTUIFëOBODFNBOBHFSTSFTQPOTJCJMJUZUP guarantee a strong product for the client. In this case, the so-called client is a bevy of senior management honchos. Given the credit crisis, we take such risks very seriously.
THE WORKPLACE
ɨFëSNNBJOUBJOTTFFEDBQJUBMJOBGVOE that was moved into separately managed status, and I am having trouble pricing it. As we hedge our seed capital, I need to price the account to make sure we get the appropriate divergence against the hedge. This price will also affect the tracking error. Checking up on this, I give a colleague in Frankfurt a call. She refers me to Luxembourg.
I throw the P&L into our risk report, which includes the P&L, value-at-risk metrics, various stress tests and tracking error calculations, among other things.
ON THE JOB
After doing the legwork, I speak to my colleague, and advise her as to how to create the entry. Naturally, I also explain to her how she could perform the legwork in the future. We off-shored various activities to Manila, so I regularly speak to my counterparts there. Many of us based in New York have had the good fortune to make a long visit to Manila.
hedging on the fund pricing. He agrees with my assessment.
THE FIRM
$PSSFDUBKPVSOBMFOUSZSFMBUFEUPUIF sale of a debt security. While I generally do not perform entries, in this case I am doing some legwork to help a colleague in Manila.
AT A GLANCE
AT A GLANCE
Deutsche Bank in the U.S.
THE FIRM
GETTING HIRED
THE WORKPLACE
ON THE JOB
FOR YOUR REFERENCE
asks me for some AUM data. I gather this information and parse it out.
anxieties. Wishful thinking? Maybe.
Review procedures provided from a second colleague in Manila. As more work moves offshore, I continue to ramp up on more analytical, more intensive work. It’s a great experience for a young person such as myself. A colleague who works under the PM calls to review the fund I priced this morning. )FëOETBOJTTVFEFUFSNJOJOHUIFQSJDFPG its holdings. Unfortunately, the custodian’s website has no reports showing whether the risk model’s claims for the fund’s holdings are accurate. The custodian QBTTFENFBSPVOEUIFXPSME BOEëOBMMZ to Luxembourg. This problem will need to be resolved another day. I go back to reviewing procedures, and I send out my critique. Since it’s the middle of the night in Manila, my colleague will respond tomorrow morning.
"GUFSëOJTIJOHUIFQSPDFEVSFT JUTUJNFUP review some entries from the prior month.
I am not as heavily involved in quarterly GPSFDBTUJOHBT*XBTJOUIFQBTU*ONZëSTU year-and-a-half at Deutsche, I did various estimates and forecasts for the DB Advisors business within Asset Management. Since then, my role has shifted toward risk, economic capital, and balance sheet analysis. However, since I am still in transition, my services are still required. I help to review and improve commentary related to the institutional business.
After working out some of the intricacies of the quarterly forecast, I check my email for any last requests. My former manager
32
W E T F E E T I N SID ER GU ID E
About to head out for the evening. I decide against happy hour tonight. Tonight, I’m going to study for my CFA exam.
GROUP TECHNOLOGY & OPERATIONS (GTO) Deutsche Bank processes transactions worth hundreds of billions of dollars each day. No wonder then that strong technology and operations is at the very DFOUFSPGUIFCBOLTCVTJOFTT(50EFMJWFSTUBJMPSFE information technology and seamless transaction solutions to keep the bank’s business engines running. The division designs and develops the systems, software, and solutions that make millisecond transaction times cost-effective and reliable with client service JONJOE*UIBTCFFOSFDPHOJ[FECZJOEVTUSZBXBSET JODMVEJOHi*5%FQBSUNFOUPGUIF:FBSwJO'JOBODJBM News Trading & Technology Awards 2008 for its work in integrating the norisbank IT systems into the Deutsche Bank IT platforms. *OTPNFTFOTF (50JTUIFVOTFFOIBOEUIFIFMQT FWFSZPOFFMTFEPUIFJSKPCTNBSUFSBOEGBTUFS XIJMF insuring that all information and deals can be processed to keep the bank moving each day. (50PêFSTVQUPEJêFSFOUUZQFTPGSPMFTBDSPTT its international locations and has a training program that offers the opportunity to rotate through a minimum of two different experiences during its 15 month duration.
Analysts focus on the maintenance and construction of the bank’s core technical systems: t
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THE FIRM
"OBMZTUTJOUIJTBSFBBMTPNBOBHFTQFDJëDQSPKects and participate in business and client management. Network engineers work primarily with Unix, Windows NT, Linux, and TCP/IP networking.
ON THE JOB
-JLFBUBMMNBKPSëOBODJBMJOTUJUVUJPOT *5FYQFSUTBSF JOEFNBOEBU%FVUTDIF#BOLɨFëSNOFFETQFPQMF to develop, install, manage, and troubleshoot the wide array of technologies it uses to conduct business: internal sales and trading and accounting systems to corporate intranets, online trading systems, and big FOUFSQSJTFTZTUFNT TVDIBT4"1PS0SBDMF UIBUNBOBHF everything from customer relationships to human resources. Technology oversees these crucial technological needs. Technology is responsible for the development, implementation, and maintenance of new software applications. They create the core systems that process USBEFT BTTFTTSJTL BOEEFMJWFSEBUB(505FDIOPMPHZ is divided into two functions: Technology and Infrastructure.
AT A GLANCE
GTO: TECHNOLOGY
Technology
A DAY IN THE LIFE OF A TECHNOLOGY ASSOCIATE The alarm goes off. Time to get ready for work.
Leave for work. Read up on business news and market movements on the train. Arrive at the building, and grab a coffee and some breakfast from the cafeteria.
WETFEET I NSI DER G UI DE
FOR YOUR REFERENCE
Infrastructure provides global data centers, networks, and services that are reliable, cost effective, and scalable across all divisions. In this group you’ll manage FYJTUJOHUFDIOPMPHZJOGSBTUSVDUVSFɨFëSNTHMPCBM operations manage more than 200 million phone conversations a year, more than 10,000 servers, and more than 200 terabytes of storage. The group also delivers millions of messages via the Internet and the company’s intranet.
Check email to see there are any issues pending. Since I’m a business analyst/ QSPKFDUNBOBHFS *IBWFUIFVOJRVF opportunity to interact with a different people at each step of the software development lifecycle. Currently, the EFWFMPQNFOUXPSLJTëOJTIFEPOUIF application I’m working on, and it’s going through the quality assurance— BLB2"QIBTF
GETTING HIRED
Infrastructure
THE WORKPLACE
You’ll develop software and system innovations vital to all the bank’s activities—from electronic trading worth billions of dollars every day and delivery of businessto-consumer and business-to-business applications, to report collation and the production of information. You’ll work primarily in a Windows and Unix environNFOU VTJOH0SBDMF 42- $ 7# +BWB BOEUIFMBUFTU Web and mobile computing technologies. As a software developer, you’ll need to work at tremendous speed and be flexible enough to deliver high-quality systems. You’ll also have to develop QSPKFDUNBOBHFNFOUTLJMMTBOEQBSUJDJQBUFJOCVTJOFTT analysis and vendor management.
33
AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE GETTING HIRED FOR YOUR REFERENCE
Deutsche Bank in the U.S.
4QFOETPNFUJNF2"JOHUIFBQQMJDBUJPO which basically means playing with it to see what isn’t working right. I report any issues or bugs back to the development team.
Lunch-and-learn session with the graduate trainees from the class of 2009. I like to be involved in the graduate program. I went through it myself, and it’s cool to see it evolve.
Afternoon of meetings with managers and USBEFSTUPCFHJOEFëOJOHSFRVJSFNFOUTPO BGVUVSFQSPKFDU
.PSF2"ɨFBQQMJDBUJPOQBTTFTJOJUJBM testing; now it’s time to pass it on to user acceptance testing, or UAT. This is the phase of testing where it goes to the intended users. Does it work for them? I made a test plan for the users, so I schedule meetings with the users to walk them through it.
Check emails for any end-of-day production issues, then I’m ready to go home. I usually end up leaving around 6:30 p.m.
GTO: OPERATIONS 0QFSBUJPOTXPSLNFBOTZPVSFJOWPMWFEJOUSBEFBOE transaction processing. It’s a crucial function in the bank: The division processes hundreds of billions of EPMMBSTBEBZBDSPTTNBOZUJNF[POFTJOBMMUIFNBKPS currencies and markets. Your primary responsibility will involve the correct input, clearance, and settlement of all transactions. #FDBVTFUIFQSJNBSZPCKFDUJWFPGUIJTEJWJTJPOJT to streamline processes and bring down costs while increasing productivity, Deutsche Bank considers the group key to helping it gain a competitive edge.
34
W E T F E E T I N S ID ER GU ID E
TYPICAL RESPONSIBILITIES You’ll work with and develop systems and processes that support multi-entry, multicurrency, cross-border trading, transaction, and settlement activity. You could also have client contact, manage risk, and ultimately play a part in bringing in new revenue. The operations department is responsible for troubleshooting problems with trades after they’re executed: booking USBEFT BMMPDBUJOH HFUUJOHDPOëSNBUJPOGSPNDMJFOUT and quickly resolving discrepancies.
A DAY IN THE LIFE OF A FOREIGN EXCHANGE PRIME BROKERAGE AVP
Alarm goes off. Check the Blackberry calendar to review my schedule for the day.
Usually out the door by now. Grab either '91-NBHB[JOFPS8BMM4USFFU+PVSOBM on the way to the subway.
Grab a cup of coffee and arrive at my desk. Check Bloomberg for headlines. Check FX retailers and Autobahn for current spot QSJDFTPGNBKPSMJRVJEDVSSFODJFT
Call the London FXPB manager to get an VQEBUFPWFSNBKPSJTTVFTBOEOFXTUIBU occurred overnight.
Sift through my overnight emails from Asia-Pac. My inbox is always flooded, so QSJPSJUJ[JOHVSHFOUFNBJMTJTLFZ
Chair the daily team huddle. As manager, this is an efficient way to keep steady communication. A senior client service rep provides background of a new client UIBUXFOUiMJWFwUPEBZ
Check on the FX options exercise process. This is the general cutoff for most options on the prime brokerage books,
Call the front office. Indicate trading WPMVNFTGPSUIFEBZBOEFOKPZUIFFOEPG a relatively smooth day. Discuss the client pipeline, book of work, and IT initiatives for the next quarter.
Most hedge funds have agreed end of day positions and tied out P&L against our PB reports provided. I touch base with the client reps to identify trades pending booking.
Notify executing dealers over the Reuters terminal of any missing trade
Answer any neglected emails and check tomorrow’s schedule.
0VS4JOHBQPSFDPVOUFSQBSUTJOEJDBUFUIFZ BSFJOUIFPïDF0VSHMPCBMIPUMJOFSPMMT PWFSUP"TJBɨFSFTUPGUIFUFBNëOJTIFT up and we head to the pub down the street.
FOR YOUR REFERENCE
Check the daily control reports for any trade breaks requiring escalation. With the regulatory environment constantly tightening, it’s critical to understand and resolve all risk indicators.
GETTING HIRED
Walk into my director’s office and provide BWFSCBMVQEBUFUPUIFEBZTNBKPSFWFOUT We proceed to decide on a venue for team drinks later that night.
THE WORKPLACE
Go out to lunch with a colleague. Contrary to popular belief, not all lunches are wolfed down on your desktop. Both of VTKPJOFEUIF#BOLUISPVHIUIF(SBEVBUF Training Program and we reflect on the past 3+ years. Phone lines are getting busy so I chip in by answering others’ client calls.
ON THE JOB
Walk over to the FX settlement and conëSNBUJPOTUFBNT*UTJNQPSUBOUUPNBJOUBJO partnerships between back and middle offices. This goes a long way to ensure successful front-to-back trade booking.
4VNNBSJ[FUIFEBZTFWFOUTPWFSBGFX bullet points in an email. Broadcast this to the global PB teams and senior management.
THE FIRM
Jump on a call with our primary vendor, who provides our trade capture and messaging platforms. The focus is a steering committee to discuss what improvements can be made.
AT A GLANCE
DPOëSNBUJPOT4ZOFSHZBNPOHDPNQFUJOH banks is encouraged with the common goal of keeping clients happy.
so I monitor accurate reflection of client portfolio risk.
WETFEET I NSI DER G UI DE
35
The Workplace
4
Lifestyle and Hours ....................... 38 Culture......................................... 38
Workplace Diversity ...................... 40 Travel Requirements ......................41
Compensation, Vacation, and Perks .......................................41 Civic Involvement ......................... 42 Training ........................................ 43 Career Path ................................... 44 The Inside Scoop ........................... 45
AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE GETTING HIRED FOR YOUR REFERENCE
Deutsche Bank in the U.S.
LIFESTYLE AND HOURS If you’re looking to work 9 to 5, Deutsche Bank—and investment banking in general, for that matter—is not the place for you. But your schedule depends on the area of Deutsche Bank you work in. 0OUIFUSBEJOHìPPS GPSFYBNQMF UIFNBSLFUTFUTZPVS hours. You may get in at 6:45 a.m., but you’re out by 5:30 p.m. “You learn to spend time with people who IBWFMJLFTDIFEVMFT wTBZTB(MPCBM.BSLFUTJOTJEFS It’s a different story in Global Banking, where “the EFBMwXJMMSVOZPVSMJGFi*ECFMZJOHJG*TBJEJUXBTOUB TIPDLUPUIFTZTUFN wTBZTBUIJSEZFBSBOBMZTUi.PSF hours, more pressure, more responsibility than you can JNBHJOFɨFëSTUZFBSJTSFBMMZXIFSFZPVSFQSPWJOH yourself. I worked seven days a week—9 a.m. to midnight every day, and 10 a.m. to 10 p.m. on weekends. A lot of all-nighters. Three days straight in the office without any sleep was the most. In the second year you may get a weekend off occasionally because you learn how to work more effectively. In the third year, I work 80 hours a week and take weekends off. i8IBUTEJïDVMUJTUIFBNPVOUPGXPSL wUIFBOBlyst says. “It doesn’t increase or decrease based on your capacity. You have to multitask, manage deal expectations. You have to learn to delegate—let someone else work on it. We’re perfectionists—type A–personality people. As you become more familiar with your indusUSZBOEXJUIëOBODFJOHFOFSBM JUHFUTFBTJFSw In other areas, such as Asset Management or 0QFSBUJPOT UIFEBJMZTDIFEVMFJTNPSFUSBEJUJPOBM 0OFJOTJEFSUBMLFEUPVTBTIFXBTIFBEJOHPVUPGUPXO for an unexpected family event, saying, “I’m pretty forUVOBUFUPIBWFUIFVOEFSTUBOEJOHPGUIFPSHBOJ[BUJPOw
INSIDER SCOOP “I work in investment banking, where it’s well known the hours can be long. You have to be able to work hard—keeping in mind that in exchange the long hours, you’re taking a lot away from it.” 38
W E T F E E T I N S ID ER GU ID E
CULTURE When we asked people what it’s like to work at Deutsche Bank, we got enough different answers to DPODMVEFUIBUiEJWFSTFwJTUIFPQFSBUJWFEFTDSJQUPS The culture encompasses not only cultural and ethnic diversity—and the bank has plenty of that—it contains a broad spectrum of educational backgrounds, personalities, and politics. The differences run deeper than the stereotypical images PGBQPMJTIFE*WZ-FBHVFDPSQPSBUFëOBODFCBOLFS versus the trading floor full of swaggering hotshots. At Deutsche Bank, the top-performing member of UIFUIJSEZFBSDPSQPSBUFëOBODFBOBMZTUHSPVQJTKVTU as likely to be a young woman from Georgetown University as a Harvard man. INSIDER SCOOP “You have to be pretty smart, of course. You have to be mature, and show an attention to detail. But most of all, you have to care about what you do—not just doing it because you think it’s the thing to do.” Whether you describe the prevailing work ethic of Deutsche Bank as entrepreneurial or contrarian is a matter of semantics. Certainly Deutsche Bank has its share of nonconformists from other banking PSHBOJ[BUJPOTUPQQFSGPSNFSTXIPFJUIFSEJEOUëU into a particular political culture or weren’t given the creative freedom to follow their passion. But there are KVTUBTNBOZ JGOPUNPSF XIPWFXPSLFEUIFJSXBZVQ from within by identifying opportunities and pitching BOFXQSPKFDUPSQPTJUJPOBOESFDFJWJOHBHSFFOMJHIU i*UUBLFTUISFFZFBSTUPCVJMEBDVMUVSFɨFëSTU year, people think you’re going away. The second year, UIFZSFBMJ[F AɨJTHVZTSFBMMZTFSJPVTɨFUIJSEUIFZ NBLFUIFDIBOHF PSUIFZHFUPVUw
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AT A GLANCE
0WFSBMM JOTJEFSTJEFOUJGZëWFLFZBTQFDUTPG Deutsche Bank culture:
Collaboration i:PVIBWFUPCFBCMFUPJOUFSBDU*UTJNQPSUBOU UIBUZPVOPUCFBMPOFSBOHFSw
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i1FPQMFHFUSFDPHOJ[FEGPSUIFJSDPNNJUNFOUUP UIFDMJFOUSFMBUJPOTIJQOPUKVTUUIFUSBOTBDUJPO It leads to decisions on how people get paid. If you don’t do the equity transaction, but you were critical to the conversation that led to the deal, UIFOZPVHFUBDLOPXMFEHFEw
i4PNFPGVTXFSFTFDPOEUJFSXIFOXFHPUIFSF Now that we’ve arrived, we can pat ourselves on the back, but we don’t ever want to lose that edge. ɨFSFTBMXBZTGVSUIFSUPHPBOECFUUFSUPCFw
i0ONZUFBN UIFHVZTDPNQFUFXJUIFBDIPUIFS All their clients are looking to buy the same asset, and whoever’s client wins gets paid at the end of the year. But the head of our group insists that if you have proprietary information, you have to share it with the group, even though they’re your competitors. If you don’t share, you’ll be QFOBMJ[FE*UDBOCFIBSEGPSTPNFQFPQMFw
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i8IBUTHMPSJPVTJTUIBU%FVUTDIF#BOLJTB work in progress. People that crave the box of an PSHBOJ[BUJPODIBSUUIFZSFOPUHPJOHUPIFMQVT ëOJTIUIFQBJOUJOHA&OUSFQSFOFVSJBMJTPWFSVTFE CVUJUTUIFSJHIUXPSEw
i*BWPJEIJSJOHQFPQMFXIPBSFUPPJOEJWJEVBM thinking. A guy the other day spent the whole interview talking about money. It’s frustrating when you see they’re very talented but wouldn’t be BHPPEëUw
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Entrepreneurial Attitude
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i8FMPPLGPSQFPQMFXJUIHPPEDIBSBDUFS QFPQMF who are trustworthy. People whom, at the end of the day, you can look to for support. Potential MFBEFST8FSFCJHPONFOUPSJOHw FOR YOUR REFERENCE
t
i*UTBWFSZQPTJUJWFQMBDFUPXPSL1FPQMFBSFIBQQZ to see you—they say ‘hi’ and catch up on stuff completely unrelated to work. It’s a culture of social events and group outings—bowling nights, softball outings. Whenever a person leaves, one of UIFTFOJPSQFPQMFXJMMPSHBOJ[FESJOLT*UNBLFTZPV more comfortable with the people you have to work XJUIBDPMMFHJBM QSPEVDUJWFXPSLBUNPTQIFSFw
GETTING HIRED
Collegiality
THE WORKPLACE
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ON THE JOB
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THE FIRM
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WETFEET INSI DER G UIDE
39
AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE GETTING HIRED FOR YOUR REFERENCE
Deutsche Bank in the U.S.
WORKPLACE DIVERSITY INSIDER SCOOP “I’m an old white male. Rather than having ten old white males around a table, with one basic perspective, it’s invigorating to have some diversity.” Diversity is built into Deutsche Bank’s global structure. Teams in Hong Kong and the U.S. interact daily with counterparts in London and Paris, bringing together people of wildly different backgrounds and cultures. Deutsche Bank also has taken active steps to achieve its vision of diversity. In particular, its global employee networks bring together employees with similar interests and values and provide an inclusive and supportive environment: t
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OPPORTUNITIES FOR WOMEN The top brass at Deutsche Bank are generally over 40, white, and male, with the concentration of women greatest at the analyst and associate level. That might be changing, though. To promote new perspectives and career mobility, the bank sponsors the Women Mentoring Program, a group of female professionals who meet one-on-one and as a group to facilitate networking. Deutsche Bank insiders say the career coaching and role NPEFMJOHKVOJPSQSPGFTTJPOBMTSFDFJWFBSFJOWBMVBCMF
40
W E T F E E T I N S ID ER GU ID E
Insiders also report Deutsche Bank is top-notch in supporting a flexible, diverse, and productive work FOWJSPONFOUGPSXPNFO5FMFDPNNVUJOH KPCTIBSJOH part-time hours, and sabbaticals all add to the flexible work/life initiatives the bank promotes. Female insiders QPJOUUPCFOFëUTTVDIBTFNFSHFODZCBDLVQDIJMEDBSF and elder care, parenting workshops, and adoption assistance.
INSIDER SCOOP “It’s not an old boy’s club—it’s a big brains club. You lead with your brain, not your golf swing.” Deutsche Bank’s annual Woman on Wall Street conference is very popular—with all of its 2,000QMVTTQPUTHFOFSBMMZHFUUJOHTOBQQFEVQUIFëSTUEBZ and with a waiting list in the hundreds. This free conference provides networking and other career development opportunities for women who work in JOWFTUNFOUCBOLJOHOPUKVTU%FVUTDIF#BOLFNQMPZ ees. In 2009 the bank held its 14th annual staging of the event. Women on Wall Street Network, the former Global Partnership Network for Women, has sponsored the conference every year since it began in 1995.
on your position and your seniority. Employees in Global Markets do travel, with analysts traveling slightly less than more senior people. Investment bankers can expect to be on the road a lot, dealing with clients.
INSIDER SCOOP
WETFEET INSI DER G UI DE
41
FOR YOUR REFERENCE
“The nature of the work in Global Markets means you need to develop client relationships and strong partnerships. That means being onsite with clients, dinners, events, and a golf game here or there.”
GETTING HIRED
The amount of time you spend on the road depends
THE WORKPLACE
TRAVEL REQUIREMENTS
Though the sluggish economy has shackled industry-wide compensation levels, an eventual recovery should put the gravy train back on track, as occurred after the deflated tech bubble and tumult of 9/11. Then again, don’t expect a return to the fantastic days of the late 1990s and early 2000s, when the average salary for MBAs was far north of $100,000. Deutsche Bank does not release compensation information, but based on WetFeet research, the starting salary for analysts in the U.S. is $55,000 to $65,000, with a signing bonus of $7,000 to $10,000. MBAs in the U.S. will likely start at $95,000, with a signing bonus of $20,000 to $40,000, and graduates usually qualify for relocation assistance. Bonuses are an incentive and vary widely based on performance—the ëSNT ZPVSEFQBSUNFOUT BOEZPVSPXO WetFeet research also indicates Deutsche Bank compensation levels are competitive with those of PUIFSëOBODJBMTFSWJDFTJOTUJUVUJPOTJUTTJ[F"OBMZTUT and associates in the U.S. receive three weeks of paid vacation. But taking back-to-back weeks off is difficult, and sometimes vacation plans get postponed at the last NJOVUF.PTUQFPQMFJOUIFëSNTBZUIFJSXPSLMPBET keep them from taking their full vacation allotment each year. Insiders say everyone is expected to check voicemail when they’re on vacation and return important calls. Employees in Deutsche Bank’s other locations around the world receive vacation packages consistent with what is offered by other employers in the region. Deutsche Bank does pay for cell phones or #MBDL#FSSZTJGUIFZSFOFFEFEGPSXPSLɨFëSN BMTPTVCTJEJ[FTHZNNFNCFSTIJQT EFQFOEJOHPO geographic location. In New York, the bank has a TVCTJEJ[FEFNQMPZFFDBGFUFSJB"OEPOUIPTFOJHIUT when you have to work past 10:00 p.m., Deutsche
ON THE JOB
Since returning, Deutsche Bank has allowed Ruhle to modify her schedule to fit her new personal situation. “It’s a 100-mile-anhour business, and I knew if I continued the same schedule, I was going to burn out.” The bank allowed her to work a four-day week, giving her a support person to facilitate the arrangement. The situation has in no way impeded Ruhle’s career progress; in fact, her promotion to managing director came after her maternity leave. “It’s not how many hours you work,” Ruhle says. “It’s what those hours are like.”
THE FIRM
Small wonder that Stephanie Ruhle made the cover of the October 2009 issue of Working Mother magazine—she embodies the concept of a working mother. Ruhle, a managing director in structured credit sales in Deutsche Bank’s Global Markets division, has been able to maintain the high-powered pace of her career while starting a family. The bank has encouraged the process: an HR person coached her through the maternity-leave process, and the firm exerted no pressure for her to return early. Ruhle was able to stay completely engaged in the business while on leave.
COMPENSATION, VACATION, AND PERKS
AT A GLANCE
π BALANCING ACT
AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE GETTING HIRED FOR YOUR REFERENCE
Deutsche Bank in the U.S. Bank provides a taxi ride home and dinner (this varies PVUTJEFPG/FX:PSL ɨFëSNQSPWJEFTBHFOFSPVT CFOFëUTQBDLBHFUIBUJODMVEFTGVMMNFEJDBMBOEEFOUBM insurance, life insurance, and disability insurance.
CIVIC INVOLVEMENT Deutsche Bank has a long history of civic involvement and a commitment to community. ɨFëSNJTHVJEFECZJUTiDVMUVSBMWBMVFwDPODFQU “Wherever we do business, we would like to help enrich cultural life, promote the advancement of TPDJFUZ BOEDSFBUFUIJOHTOFXw For decades, Deutsche Bank has been involved globally in a wide range of social activities through its many foundations, donations and sponsorships, and employees’ personal initiatives. For instance, Deutsche #BOLJTQBSUPGUIF(MPCBM$PNNFSDJBM.JDSPëOBODF $POTPSUJVN QSPWJEJOHMPDBMDVSSFODZëOBODJOHUP self-employed poor—street vendors, local farmers, market merchants—in communities around the world. In the Americas, Deutsche Bank carries out a strategic program of loans, investments, and philanthropic grants to assist low- and moderate-income DPNNVOJUJFTJOUIFQSPDFTTPGSFWJUBMJ[BUJPOUISPVHI the Deutsche Bank Americas Foundation. The foundation provides sponsorship in the areas of community development, education, and the arts. The foundation has worked to develop permanent housing for homeless New Yorkers, create educational opportunities for immigrant students and boys of color, and improve school facilities in underprivileged neighborhoods, among other endeavors. The bank also encourages employees to take part in volunteerism and charity, providing employee grants and matching gifts. Deutsche Bank engages in a variety of arts sponsorships in the U.S. In 2009, it sponsored the installaUJPOPGi.FNPSZ wCZ.VNCBJCPSOTDVMQUPS"OJTI Kapoor, at the Guggenheim Museum. The bank has 42
W E T F E E T I N SID ER GU ID E
an ongoing partnership with the Berlin Philharmonic, TQPOTPSJOHUIFPSDIFTUSBTëWFDJUZ"NFSJDBO UPVS0OFPGUIFCBOLTNPTUQSPNJOFOUTQPOTPSTIJQT in recent years was The Gates of Central Park—the much-touted February 2005 art installation by Christo and Jeanne-Claude consisting of saffroncolored fabric hanging from 7,500 16-foot-high gates along 23 miles of Central Park’s pedestrian pathways. In 2009 Deutsche Bank continued its partnership with the Berlin Philharmonic, which will perform a ëWFDJUZDPODFSUTFSJFTJOUIF6OJUFE4UBUFT7FOVFT included Carnegie Hall in New York City and the Walt Disney Concert Hall in Los Angeles. Deutsche Bank also sponsors a number of programs to encourage education and success among youth. 4QPOTPSTGPS&EVDBUJPOBM0QQPSUVOJUZ 4&0 QSPWJEFT mentoring programs for high-school students of color in New York City and London. Student Sponsor Partners is a New York City–based program that NBUDIFTTUVEFOUTUPTQPOTPSTPêFSJOHëOBODJBMTVQQPSU and mentorship. Founded in 2003, the Deutsche Bank Asia 'PVOEBUJPOJTUIFëSNTMPOHUFSNDPSQPSBUFDJUJ[FOQSPHSBNJOUIF"TJB1BDJëDSFHJPO GPDVTJOHPO those in greatest need. It is structured around four areas: regional programs, local country programs, the Deutsche Bank Initiative Plus staff volunteer program, and disaster relief. The activities of all these programs are guided by four principles: support, education, intervention, and prevention. *OJUTëSTUZFBS UIFGPVOEBUJPOTVQQPSUFENPSF than 700 children affected by AIDS in Thailand, 7JFUOBN BOE$BNCPEJBɨFGPVOEBUJPOBMTP provided immediate aid to flood victims in Southeast Asia. In Thailand, the Deutsche Bank Asia Foundation QSPWJEFTTDIPMBSTIJQTUP)*7"*%4PSQIBOT WPDBUJPOBMUSBJOJOHGPSIJMMUSJCFZPVUI BOE)*7"*%4 QSFWFOUJPOFEVDBUJPO*O$BNCPEJBBOE7JFUOBN the foundation provides schooling and day care for orphans, and in the Philippines, Deutsche Bank Manila supported a local initiative to build an elementary school to provide relief for extremely crowded classrooms.
Deutsche Bank recruits for the following analyst and associate training programs: "TTFU.BOBHFNFOU 'JOBODF (MPCBM#BOLJOH (MPCBM.BSLFUT )VNBO3FTPVSDFT -FHBM 3JTL BOE$BQJUBM 0QFSBUJPOT 1SJWBUF8FBMUI.BOBHFNFOU 5FDIOPMPHZ
MBAS "TTFU.BOBHFNFOU (MPCBM#BOLJOH (MPCBM.BSLFUT
INSIDER SCOOP “The reason I chose Deutsche Bank is the graduate program structure. They offer rotations, which gives me a chance to explore what I like and I don’t like—it gives me a choice.”
'PSTPNFBOBMZTUQSPHSBNT UIFëSTUTUBHFPGUSBJOing takes place in London—for either four or nine weeks—where trainees from all regions are grouped together. This stage of training serves to give employees with widely different backgrounds a common set of baseline skills. (For instance, one trainee who came to DB with political science and economics degrees spent months in a classroom learning how to price a bond.) It also allows trainees to form connections with classmates from all over the world and start to build their global network. The global graduate programs represent a huge investment on DB’s part—€23 million spent in 2007—but it’s a measure of the bank’s commitment to molding and training its employees.
GETTING HIRED
t t t
Apply to Deutsche Bank’s summer internship program through your campus recruiting center or the Deutsche Bank global online application system. Competition is intense, but once you’re in, you’re on your way— Deutsche Bank plans carefully so interns get maximum real-world exposure, and interns are at the front of the queue for full-time training positions after graduation.
THE WORKPLACE
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The best entry point for Deutsche Bank’s analyst and associate training programs is a summer internship: The company offers a fulltime training position to summer interns who perform well. “We find a balance between having enough interns and providing meaningful work,” says a recruiter. “A lot of banks hire more interns than they need and usher them out at the end of the summer. We don’t think that’s good for our brand.”
ON THE JOB
UNDERGRADUATES
π INTERNSHIPS: REAL-WORLD EXPERIENCE
THE FIRM
TRAINING
AT A GLANCE
The company has a similar initiative in Africa. The Deutsche Bank Africa Foundation was founded in 2002 in South Africa to provide aid to Nurturing 0SQIBOTPG"*%4GPS)VNBOJUZ /0") ɨFHPBM PGUIFPSHBOJ[BUJPOJTUPQSPWJEFBTPDJBMOFUXPSLGPS children who’ve lost both parents to AIDS so they may receive support and education.
INSIDER SCOOP “As a analyst intern, you’re relying on a buffer—a fulltime analyst. But when I became full-time, I was immediately staffed on a project as the only analyst. It puts a lot of responsibility on your shoulders. But it’s only when you have that responsibility that you have some room to take initiative.”
WETFEET INSI DER G UIDE
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FOR YOUR REFERENCE
Deutsche Bank recruits for its analyst-training QSPHSBNBNPOHTUVEFOUTJOUIFJSëOBMZFBSPGBCBDIFMPST NBTUFST PS1I%QSPHSBN UIPTFXJUIUXPUPëWF years of work experience now completing an MBA are targeted for the associate training program.
AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE GETTING HIRED FOR YOUR REFERENCE
Deutsche Bank in the U.S. Additional training varies by division. In sales and trading and research, you’re hired as a generalist. You rotate among three assignments which are chosen as you move through the training based on your input, your developing skill set, and the bank’s needs. You then rank your preferences to decide where to go from there. In investment banking, you’re part of the development program for a year before you’re placed in a group. Inevitably, some trainees do better than others. “You can watch and after six months everyone asks the TBNFQFSTPOUPEPTUVê wTBZTBOJOTJEFSi*DBOMPPLBU the analyst pool and tell you who the stars are because UIFZSFHFUUJOHNBVMFEBOEUIFZSFEJHHJOHJUw
INSIDER SCOOP “The people who will become most successful are the ones who ask for the experience. You must want to get killed as early in your career as you can, because that gets you positioned for the future—it gives you a lifetime skill set.”
CAREER PATH The financial crisis and its attendant cutbacks have obviously made the Deutsche Bank workplace more demanding than ever. But from a career-path standpoint, it also has offered increased opportunities GPSKVOJPSMFWFMQFPQMFUPTIJOFɨFCBOLIBECFFO NPWJOHJOUIFEJSFDUJPOPGTUBOEBSEJ[JOHQSPNPUJPO practices, but the crisis has proved to be a gameDIBOHFS SFDPOëHVSJOHUIFEJTUSJCVUJPOPGXPSLBOE 44
W E T F E E T I N SID ER GU ID E
FMJNJOBUJOHTPNFPGUIFCVêFS[POFCFUXFFOKVOJPS people and top decision-makers. “Two individuals I’ve worked with, by virtue of the fact that we’ve had to cut back and give them additional responsibilities, are PCWJPVTTVQFSTUBST wTBZTBNBOBHJOHEJSFDUPS
INSIDER SCOOP “We don’t promote based on age or years of service, but actual performance and competency.” Training doesn’t stop with analysts and associates. Deutsche Bank’s learning and development group offers a full range of career-enhancing support, whether you need to learn a new technology, get coached in managing people, or expand your skills in preparation for a new role.
INSIDER SCOOP “I’m the master of my own destiny. If I am thinking of a particular field, I feel that my managers will give me the flexibility and resources to gradually move toward my goal.” The mentoring process that begins when you’re an analyst or an associate continues as you climb the SBOLTi*MMIBWFMVODIXJUITPNFPOFBUUIF71MFWFM once every month, and participate in panel discusTJPOTPOIPXUPHSPXJOUPUIFSPMF wTBZTBNBOBHJOH director. “We take the point of view that it’s a privilege UPIBWFZPVJOUIFëSNBOEXFXBOUUPOVSUVSFZPV 4PNFUJNFTXFMMIBWFGPVSQFPQMFXPSLJOHPOBQSPKFDU even if we could use fewer, because we want more QFPQMFFYQPTFEw People do leave Deutsche Bank—but usually they’re getting out of the industry rather than moving to a competitor. According to insiders, the bank wants to create employees for life, so keeping employees happy BOEFOHBHFE FWFOJGJUNFBOTTXJUDIJOHUIFNGSPNKPC UPKPCXJUIJOUIFëSN JTBUPQQSJPSJUZ
DBSFFSBEWBODFNFOUi4IFXBTUPPUBMFOUFEGPSUIFKPC she was in, and I was thrilled that rather than go to BOPUIFSëSNMJLF+1.PSHBO TIFTUBZFEXJUI%FVUTDIF #BOLw
INSIDER SCOOP
Go Global
“You have to be able to seize the moment. To be successful, you have to step up. The culture supports those who are proactive: ‘Let’s not do what we’ve always done.’”
INSIDER SCOOP
Make Your Own Opportunity
INSIDER SCOOP “An advantage to having one of the biggest balance sheets in the world is that if we want to finance a company, we can compete with any bank on the Street.”
GETTING HIRED
WATCH OUT! Big Can Be Overwhelming %FVUTDIF#BOLTWFSZTJ[FDBOTPNFUJNFTDSFBUF communication problems. Just in New York, the bank is split between offices on Park Avenue and 47 floors on Wall Street, and it’s easy to lose track of how it all ëUTUPHFUIFS-PPLJOHBUBOPSHDIBSUJTPOFUIJOH CVU being on the ground is another. “It’s tough to know XIBUTHPJOHPOJOPUIFSEJWJTJPOT wTBZTPOFJOTJEFS WETFEET I NSI DER G UI DE
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FOR YOUR REFERENCE
Deutsche Bank’s corporate culture supports entrepreneurial, out-of-the-box thinking. Several insiders say they’ve pitched an idea and have been given a team and funding to go after it. “It’s all about SBJTJOHZPVSIBOE wTBZTBOJOTJEFSi:PVSUSBDLSFDPSE XJMMPGUFOHFUZPVOPUJDFE CVUZPVEFëOJUFMZIBWFUP CFZPVSPXOTQPOTPSw Management is supportive of staff members’ efforts UPëOEUIFSJHIUPQQPSUVOJUZXIFSFUIFZDBOQFSform optimally—even when it means losing talented people to another Deutsche Bank group. The bank QPTUTKPCTJOUFSOBMMZ XIJDIPGUFOHFUSFTQPOTFTGSPN FNQMPZFFTJOBMMEJWJTJPOTi*QPTUFEBKPCBOEHPU IJUT wTBZTBO"TTFU.BOBHFNFOUJOTJEFS iBOEPOMZB RVBSUFSXFSFGSPN"TTFU.BOBHFNFOUw.PWJOHBDSPTT divisions requires a longer transition time—up to two NPOUITUIBOTJNQMZHJWJOHOPUJDF0OFNBOBHFS told us about a situation in which an employee was transferred to another area of the bank to continue her
The bank’s deep pockets give it the flexibility to invest in huge deals. That scale translates to substantial JOUFSOBMSFTPVSDFTBTXFMM0OFNBOBHFSXIPBTLFEUP attend an external leadership-training program instead was green-lighted for ongoing one-on-one management coaching. When Deutsche Bank lost its offices in the 9/11 attacks, employees were able to access corporate email the next day so they could connect with clients and DPXPSLFSTGSPNIPNFi8FIBEBDDFTTUPPVSëMFTFWFO UIPVHI*5XBTJO8PSME5SBEF$FOUFS5PXFS5XP w says an insider. “We had our backup in Jersey City. We didn’t miss a beat. I have friends who worked at TNBMMFSëSNTXIPDPVMEOUHFUJOUPUIFJSPïDFTGPSUXP NPOUIT"GSJFOETMFHBMëSNXFOUPVUPGCVTJOFTTw
THE WORKPLACE
“At Deutsche Bank, when they say ‘global,’ they mean ‘global!’ We have people in Mumbai, London, Sydney. If something interests me in their groups, I can let people know about it.”
Size Does Count ON THE JOB
Deutsche Bank operates in 76 countries. Indeed, it is better known in Europe than in the U.S., where Deutsche Bank is still described by outsiders as a German company. “People don’t understand that 50 percent of our earnings come from outside (FSNBOZ wTBZTBOJOTJEFS"GSFRVFOURVFTUJPOëFMEFE CZSFDSVJUFSTJT i%P*IBWFUPTQFBL(FSNBO wɨF answer is no. Any language capability is viewed as a plus, but English is the language of a global business.
THE FIRM
WHAT EMPLOYEES REALLY LIKE
AT A GLANCE
THE INSIDE SCOOP
AT A GLANCE
Deutsche Bank in the U.S.
ON THE JOB
THE FIRM
INSIDER SCOOP “It’s difficult to get things done instantly, because there are cost codes and bureaucratic things. That’s a function of being big.”
No Drones Allowed The bank expects employees to have the flexibility to deal with change: If your well-being at work hinges on a dependable routine, look elsewhere. “It’s not an FBTZQMBDFUPXPSL wTBZTBOJOTJEFSi:PVDBOUFYQFDUJU to be the same day in and out. Flexibility is necessary. People come and go. Mission statements change. You have to be comfortable with ‘Let’s not do what XFWFBMXBZTEPOF:PVIBWFUPCFBCMFUPTFJ[FUIF NPNFOUw
Just as you can make your own career at Deutsche #BOL UIFëSNBMTPFYQFDUTZPVUPNBLFTVSFZPVSF RVBMJëFEUPQVMMPêZPVSDVSSFOUBTTJHONFOUBOEUP QSFQBSFGPSUIFOFYUi#FQSPBDUJWFJOTFMGMFBSOJOH w says an insider. “You won’t have to go far, as Deutsche Bank has a rich portfolio of training and development opportunities. Just don’t expect anyone to hold your IBOEBOETBZ AɨJTJTXIBUZPVOFFEUPLOPXw
INSIDER SCOOP “The only mortal sin you can commit is to tell me you understand when you don’t. That’s grounds for termination.”
FOR YOUR REFERENCE
GETTING HIRED
THE WORKPLACE
Nobody to Hold My Hand
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W E T F E E T I N SID ER GU ID E
AT A GLANCE
THE FIRM
ON THE JOB
THE WORKPLACE
GETTING HIRED
FOR YOUR REFERENCE
47
WETFEET INSI DER G UIDE
Getting Hired
5
The Recruiting Process ................. 50 On-the-Record Recruiter Interview ....................... 52 Interviewing Tips......................... 54 Grilling Your Interviewer ............. 55
AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE
Deutsche Bank in the U.S.
THE RECRUITING PROCESS INSIDER SCOOP “You won’t be meeting with an HR person— unless you’re applying for an HR job!” Recruiting is serious business for Deutsche Bank. ɨ FëSNFODPVSBHFTFNQMPZFFTBUBMMMFWFMTUPUBLF part in the recruiting process. When Deutsche stages a road show on its target campuses, it brings 30 to 65 employees from different divisions, regions, and degrees of seniority. A road show functions like a career fair—it allows you to mingle with its people and get a sense of the bank’s operations. Before Deutsche visits your campus, perform a MJUUMFEVFEJMJHFODF7JTJU%#TXFCTJUF MFBSOBCPVU UIFëSNTEJWJTJPOTBOEMPDBUJPOTɨ JTLOPXMFEHFXJMM help guide you through the road show, and it will help you make a good impression with the people you meet.
> TIP
FOR YOUR REFERENCE
GETTING HIRED
Get the business cards of the DB employees you’ve met. And be sure to follow up with an email quickly. “Bankers and traders carry their BlackBerrys everywhere,” says a DB recruiter.
All candidates, whether they attend a target school or not, have to apply through Deutsche’s website. If you’re interested in more than one division or region, recruiters ask that you do research and evaluate what XPVMECFUIFCFTUëUGPSZPVSTFMG*OPUIFSXPSET UIFiTQSBZBOEQSBZwBQQSPBDIXJMMXPSLBHBJOTUZPV making it look as if you don’t have a focus.
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W E T F E E T I N S ID ER GU ID E
The bank will respond to all applications within two months. At target schools, DB representatives will come to campus for interviews—an initial round POUIFëSTUEBZ XJUIBEEJUJPOBMJOUFSWJFXTPOUIF second for candidates who make the cut. If Deutsche doesn’t have a presence on your campus, you might be selected to participate in its open day process, which will bring you to New York for interviews. If you’re invited to interview, you’ll discover one JNQPSUBOUFêFDUPGUIFDPNQBOZTPSHBOJ[BUJPOXJEF commitment to recruiting: You’ll meet exclusively with people—and usually senior people—from the division ZPVWFUBSHFUFE0GUFOUIFTFQFPQMFBSFBMVNTPGUIF schools they visit. They’re the people who will best be able to answer your questions. And of course, they’re also UIFPOFTXIPXJMMCFNBLJOHUIFëOBMIJSJOHEFDJTJPO
> TIP When interviewing for more than one job, stay consistent from one session to the next. Don’t try to game the system by telling conflicting stories to different interviewers. Guess what? These people talk to each other.
Deutsche Bank recruits MBAs within a core group PG64DBNQVTFTXIFSFJUIBTEFUFSNJOFEJUëOET students with the best skills: t $BSOFHJF.FMMPO t
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If your school isn’t on the list of Deutsche Bank’s targets, that doesn’t mean it won’t consider you—and can even work in your favor. The bank interviews plenty of candidates from other venues. “We bring them in, and it’s the exact same process,” says a managing director involved in recruiting. “The only difference is that we don’t do interviewing on campus.
Some of them come from referrals; some look us up on the web and send their resumes. “It’s the tenacious student who’s not at a target school whom I personally look for,” she says. “The candidate who took a circuitous route to find us is already ahead in terms of drive. That person had to do more than just drop a resume off. I’m definitely taking that call.”
ON THE JOB
For undergraduates the list is longer, numbering approximately 30 schools. Check with your career center to see if Deutsche Bank will be visiting your school. The lists are reviewed and updated annually.
π NOT TARGETED? DON’T GET DISCOURAGED
THE FIRM
4UBOGPSE
AT A GLANCE
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INSIDER SCOOP RECRUITING INTERVIEWS
51
FOR YOUR REFERENCE
WETFEET I NSI DER G UI DE
GETTING HIRED
In the U.S., the full-time interview process for VOEFSHSBEVBUFTBOE.#"TJTTJNJMBSBëSTUSPVOE PGJOUFSWJFXTJO4FQUFNCFSBOE0DUPCFSPODBNQVT or near the candidate’s city (in some cases candidates USBWFMUP/FX:PSLGPSUIFJSëSTUSPVOEPGJOUFSWJFXT
GPMMPXFECZBTFSJFTPGëOBMJOUFSWJFXTJO/FX:PSL with several directors and managing directors in the division you’re targeting. Most offers for full-time positions, which start at the end of the school year, HPPVUCZ%FDFNCFS0êFSTGPSJOUFSOTIJQQSPHSBNT which also begin at the end of the school year, go out in January and February. Recruiters don’t expect you to know exactly how you want your career to proceed. But you should be very sure you want it to be under the investmentbanking umbrella. “Don’t expect me to tell you why ZPVTIPVMEXBOUUPCFBOJOWFTUNFOUCBOLFS wTBZTB Deutsche Bank insider who participates in recruiting. “By the time we’re in the room together, you should BMSFBEZIBWFBOTXFSFEUIBURVFTUJPOw
THE WORKPLACE
“A lot of times you get people who don’t necessarily have business degrees. If somebody has thought about the world, about the bigger picture, that’s more important. At the end of the day, you gotta connect with your clients with something a lot broader than a spreadsheet.”
AT A GLANCE
INSIDER SCOOP “You can’t come across like you know everything. No matter how smart you are, if you come across as been-there-done-that at age 22 or 25, it will be difficult to justify bringing you on. That’s a big red flag.” Deutsche Bank’s recruiters are sure to notice your board scores. “I’m less concerned about canned baloney and what they know or don’t about Deutsche #BOL wTBZTBIJSJOHNBOBHFSi*DBOUFBDIUIBU#VU ZPVDBOUUFBDIBQFSTPOUPCFTNBSUw
> TIP
FOR YOUR REFERENCE
GETTING HIRED
THE WORKPLACE
ON THE JOB
THE FIRM
Deutsche Bank in the U.S.
The answer to “What do you want to do?” should be “I don’t know. That’s what I want to determine over the next three years.”
UNDERGRADUATES Deutsche Bank relies on a substantial number of new analysts every year—the exact number varies depending on division needs. In 2008–09, it’s estimated the bank hired 200 undergraduates for positions in Global Banking, Global Markets, Private 8FBMUI.BOBHFNFOU UFDIOPMPHZ PQFSBUJPOT ëOBODF risk management, and human resources. In 2009–10, Deutsche Bank expects to hire about 180–200 undergraduates for positions in the U.S. across all areas of the bank. “Deutsche encourages undergraduates GSPNBSBOHFPGEJTDJQMJOFTUPBQQMZ wBOJOTJEFSTBZT “We’re unique in looking at individuals from lots of NBKPST OPUPOMZëOBODFPSBDDPVOUJOH8FMPPLGPS EJWFSTJUZBOEPWFSBMMJOUFMMFDUw
MBAS *Oo UIFëSNFYQFDUTUPIJSFBCPVU.#"T for full-time associate positions in Global Banking, Global Markets, and Asset Management. Deutsche Bank seeks individuals from diverse cultures and 52
W E T F E E T I N SID ER GU ID E
backgrounds. (In 2008–09, it hired an estimated 45 .#"TUVEFOUTBT64GVMMUJNFBTTPDJBUFT ɨ FëSN wants not only academic excellence and relevant work experience, but also strong personal qualities. “We’re after engaging people with high moral standards who LOPXIPXUPCFUFBNQMBZFST wTBZTBOJOTJEFS
ADVANCED-DEGREE CANDIDATES 0WFSUIFQBTUGFXZFBST %FVUTDIF#BOLIBT increasingly hired advanced-degree holders at the associate level—particularly engineering and analytical graduates on the equity and debt side of the CVTJOFTTBOE1I%TXJUIBOJOUFSFTUJOëOBODFBOE skill sets that complement the bank’s business.
ON-THE-RECORD RECRUITER INTERVIEW The on-the-record recruiter interview is designed to get you inside the recruiter’s head and answer your questions to help you land the position you want. What do you look for in candidates’ resumes? We’re looking for really well-rounded resumes. The resume is an excellent tool to gauge thinking patterns and the choices people make. So that’s why we look at the whole basket the candidate is offering. We’re looking for extraordinary people—individuals who have shown maturity, intelligence, and leadership in their lives. We want true achievers. Academic performance is key. We also look for extracurricular activities like clubs; so if an MBA student is a member of the investment banking club PSUIFëOBODFDMVC UIBUTIPXTBTUSPOHJOUFSFTUJOUIF industry. We look at hobbies and interests, too—what does this person do outside of his or her academic or
Going into the interview thinking you know everything. Most likely you’ll interview with several senior people in the bank, each one asking about your knowledge of the industry and the bank’s products. If you’re not sure about something, give the most educated, intelligent answer you can. You can’t fake knowledge in these interviews. We value candor and honesty and look for those qualities in the people we hire. The interview process is an opportunity for us to assess your personality, whether or not you’re BSUJDVMBUF BOEëOEPVUXIBUNBUUFSTUPZPV*UTBCPVU ëOEJOHPVUJGZPVSFBHPPEëUGPSUIFCBOL BOEBMTP helping you decide if we’re right for your goals.
What’s the most effective way for a candidate to follow up after an interview?
We like people to tell us why they should work for %FVUTDIF#BOL0CWJPVTMZ JGBQFSTPOXBMLTJOUP the room and has a presence, that makes a positive JNQSFTTJPO8FXBOUQFPQMFXIPBSFDPOëEFOU XIP know what they’re talking about, but who are not arrogant, because that trait will go nowhere with our ëSN8FCFMJFWFJOMFUUJOHQFPQMFTIJOFEVSJOHUIF interview, and we give them every opportunity to do that. We want to see if the person can solve problems. Is he smart? Can she follow a thought pattern and explain herself?
Email is always an effective tool for following up BOEJTEFëOJUFMZBDDFQUBCMF"TMPOHBTUIFFNBJMJT short and concise, it’s appreciated. Be focused and direct when you communicate by email. Your effort shows enthusiasm.
What are the qualities necessary for success in your firm? We want people who are smart and engaging. Be interested in learning. People here love it when you get involved in what they’re thinking. We’re looking for WETFEET I NSI DER G UI DE
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FOR YOUR REFERENCE
How do you decide whether a candidate advances in the interviewing process?
GETTING HIRED
Submitting an online application is the starting point for everyone, whether or not we’re on your campus. You should also network with people in the industry to learn as much as possible about the industry. If you use alumni networking, you’re not guaranteed an interview. But getting to know someone in the bank EPFTHJWFZPVQFSTQFDUJWFPOUIFëSNBOEGFFEZPV information you otherwise wouldn’t have.
THE WORKPLACE
What’s the best way to break into the interview cycle if you’re not on campus?
ON THE JOB
A mass-mailed resume and cover letter. Too often these have typos and names misspelled. They don’t show any thought or commitment to Deutsche Bank. Resumes MJLFUIJTJNNFEJBUFMZKVNQPVU*OUIJTEBZBOEBHFZPV shouldn’t be making any spelling mistakes—there are too many tools to help you avoid that. And in investment banking you need to have good attention to detail. Also, a poorly laid-out resume gets an immediate negative response. We don’t want to see messy or unattractive resumes. Candidates should take the time to put together a concise, well laid-out summary of their experience and schooling, or go to their career services office for guidance.
What’s the biggest mistake a candidate can make in the interview? THE FIRM
What are immediate turnoffs on a resume?
We look for results and want people who show that they can be committed to Deutsche Bank.
AT A GLANCE
work life? There needs to be something beyond books and working. We want well-balanced people. We also look at candidates’ work experience, and it doesn’t IBWFUPCFJOWFTUNFOUCBOLJOHPSëOBODFFYQFSJFODF But if someone has a blue-chip company on his or her SFTVNF JUDFSUBJOMZKVNQTPVU8FXBOUUPTFFKPCT that have taught a candidate transferable skills. Even though we have a number of universities we actively visit and recruit from, we’re not necessarily looking for people from Ivy League schools. We look for people from all schools. In the end, we want people who know how to work hard and show it on their resumes. They need to demonstrate that they understand how to work as a team.
AT A GLANCE THE FIRM
Deutsche Bank in the U.S. qualities that are hard to show on a resume—qualities MJLFTUSPOHKVEHNFOUBOEDMFBSUIJOLJOH*GZPVëOE processes that don’t make sense or that aren’t in our clients’ best interests, you need to speak up and make a case for a better way of doing things.
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INTERVIEWING TIPS
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ON THE JOB
INSIDER SCOOP “Be 100 percent truthful. We’ve made offers and had to take them back after doing background checks.”
FOR YOUR REFERENCE
GETTING HIRED
THE WORKPLACE
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Know yourself1FPQMFHPJOUPëOBODJBMTFSWJDFT for many reasons, and banking is a particularly challenging career. Make sure you know what’s motivating you to pursue it—you’ll be asked during your interview.
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54
W E T F E E T I N SID ER GU ID E
Follow up. This is crucial. Write to as many interviewers as possible to help them remember you—it will also demonstrate professionalism. And don’t forget to proofread your notes carefully.
This is your DIBODFUPMFBSOBCPVUUIFëSN
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%FVUTDIF#BOLIBTNBEFTUSBUFHJDBDRVJTJUJPOT in geographic areas that have controversial social conditions (sweatshop labor practices in China, for example) and volatile political conditions (the .JEEMF&BTU GPSJOTUBODF %PFTUIFëSNIBWF plans to make a difference in these communities with its social responsibility philosophy?
INSIDER SCOOP “The quality of the people in the firm has continued to go up. We’re organically growing analysts and VPs into managing directors.”
GETTING HIRED
MEDIUM "SFUIFSFBOZQMBOTUPSFEVDFUIFBNPVOUPG FYQPTVSFUIFëSNIBTJOJUTIPNFNBSLFUBOE distribute its talent and resources more evenly in other sophisticated markets?
t
*TUIFëSNEPJOHBHPPEKPCPGIJSJOHXPNFO and minorities, and where will the bank stand on SFDSVJUJOHFêPSUTJOUIBUBSFBëWFZFBSTGSPNOPX
t
8IBUTUIFUFBNFOWJSPONFOUMJLFBU%FVUTDIF Bank?
FOR YOUR REFERENCE
t
THE WORKPLACE
RARE
t
ON THE JOB
ëSTUIBOE1MBOPOQSFQBSJOHZPVSPXORVFTUJPOT CVU in the meantime, here are some sample questions to HFUZPVTUBSUFEi3BSFwRVFTUJPOTBSFNJMENBOOFSFE BOEMBSHFMZJOOPDVPVTɨPTFJOUIFi8FMM%POFw DBUFHPSZBSFEFTJHOFEUPQVUUIFëSFUPZPVS interviewers’ feet and will help you be remembered by your interviewers. Use them at your own risk!
)PXJT%FVUTDIF#BOLVTJOHUIFCBOLJOHDSJTJTBT an opportunity to grow its market and strengthen its position?
THE FIRM
GRILLING YOUR INTERVIEWER
t
AT A GLANCE
4.
WETFEET I NSI DER G UI DE
55
For Your Reference
6
Investment Banking Lingo ............ 58 Recommended Reading ................ 63 For Further Study.......................... 63 Key Numbers and People ............. 64
AT A GLANCE THE FIRM
Deutsche Bank in the U.S.
INVESTMENT BANKING LINGO To succeed as an investment banker, you’ll need to talk the talk. While what follows is by no means a complete list of the terms you’ll encounter on Wall Street, it’s a good start. Familiarity with these terms may come in handy during your interviews.
performance. It tells you how many shares of the company the president owns, as well as the president’s TBMBSZ*UFWFOPêFSTDVSSFOUTQPSUTTDPSFT 7FHBTPEET cartoons, and philosophical quotes about the market.
Buy side and sell side Buy side refers to institutional buyers of securities, TQFDJëDBMMZBTTFUNBOBHFNFOUëSNT NVUVBMGVOET BOE pensions. At an investment bank, you’re working on the sell side, providing research and selling securities to investors. Your clients, the investors, are on the buy side.
FOR YOUR REFERENCE
GETTING HIRED
THE WORKPLACE
ON THE JOB
Bake-off The meeting where groups of Hermès-tied and Chanel-scarfed bankers parade into a company’s boardroom (analyst minions trailing behind, furiously scribbling into their Treos) one after another to pitch their underwriting or advisory services as the only choice for the company’s upcoming deal. Also known BTBiCFBVUZDPOUFTUw
Bulge bracket (FOFSBMMZEFëOFEBTUIFUPQëWFUPUFOGVMMTFSWJDF JOWFTUNFOUCBOLTPO8BMM4USFFU*UTOPUBëYFETFU BTëSNTNPWFJOUPBOEPVUPGUIFCVMHFCSBDLFUPWFS time. The name derives from the top bracket on a tombstone ad (see also: Tombstone) in The Wall Street Journal.
Bloomberg Also known as Pandora’s box or the black box. This funky little computer, used daily by almost every investment banker, is a one-stop shop for a very wide range of company, economic, and market news, provided you can learn its idiosyncratic navigational commands. Bloomberg (the name of the company UIBUTFMMTUIFTFSWJDF XBTPOFPGUIFëSTUQSPWJEFST of real-time stock quotes, news feeds, and economic reports. Increasingly, other online services are encroaching on its turf, but some banks still prefer #MPPNCFSHTiDMPTFEwTZTUFNBOEFODPVSBHFVTJOH JUJODPOKVODUJPOXJUIPUIFS*OUFSOFUSFTPVSDFT Bloomberg gives you published estimated future FBSOJOHTGPSTQFDJëDDPNQBOJFTBOEDBOHSBQI 58
W E T F E E T I N SID ER GU ID E
Chinese wall The boundaries that separate research, corporate ëOBODF BOETBMFTBOEUSBEJOH XJUIUIFBJNPG preventing transmission of inside information. The wall may be physical (different departments on different floors of the same building, or trading on Wall Street BOEDPSQPSBUFëOBODFJO.JEUPXO
PSJUNBZCFBO impalpable series of procedures to control documents. 8IFOBSFTFBSDIBOBMZTUJTëOBMMZUPMEPGBEFBM VTVBMMZ right before it’s announced to the public, he or she is iCSPVHIUPWFSUIFXBMMwBOECFDPNFTSFTUSJDUFEGSPN commenting on the stock. See also: Insider trading.
Cloud computing Use of a network of computing resources outside of your main data center, usually accessed over the web, to DPNQMFUFDPNQVUJOHUBTLT#VTJOFTTFTDBOCFOFëUGSPN cloud computing by using Internet-hosted programs that they might otherwise need an in-house program GPSBOEUIBUJUJTUZQJDBMMZVUJMJ[FEBTBOPOEFNBOE service so that users can scale up or down resources according to their needs.
Comps Also known as comparable company analysis and competitive pricing analysis, comps are an endless part of an analyst’s work. Comps are spreadsheet models (typically done in Microsoft Excel) that compare UIFWJUBMëOBODJBMTUBUJTUJDTPGDPNQBOJFTJOUIFTBNF industry, such as Nike, Reebok, and Converse. Comps IFMQCBOLFSTWBMVFBDPNQBOZTëOBODJBMQPTJUJPO
3PVHIMZ i$PWFSZPVSQPTUFSJPSSFHJPOw
Deals
Derivatives
0OFPGTFWFSBMQSPDFTTFTGPSTFMMJOHBOPêFSJOH B %VUDIBVDUJPOJTEFTJHOFEUPCFIJHIMZPCKFDUJWF Interested investors place bids indicating the number of shares they want and the price they will pay. The deal closes at the lowest price at which all the shares would be sold. Bid too low and you don’t get any shares (even if you’re a Fidelity fund manager); bid too high and you risk driving up the price more than necessary. So far, Dutch auctions haven’t caught on.
Face time This is the time after 8:00 p.m. when you choose UPTUBZBUXPSLKVTUCFDBVTFPUIFSTQBSUJDVMBSMZ senior others—are there, even though you don’t have BOZUIJOHUPEPɨFTJHOJëDBODFPGUIJTBSPVOECPOVT time each year is unclear. (Do not ask your interviewer how much face time is required.)
Hedge fund
High yield
When a bank decides to conduct a deal for a client, it goes through a process of due diligence, in which the bankers and their lawyers sit down with the client’s management and their accountants and ask them every question they can think of that may uncover possible risks. The bank must do this because if it issues a security for a company with undisclosed risks and then the business falters, causing the security to tank, investors could lose a lot of money and the bank could
High-yield bonds, also called junk bonds or junk, are bonds to which Moody’s or Standard & Poor’s gives low ratings. They produce high yields, unless they go into default. See also: Investment grade.
Insider trading $SBDLBKPLFBCPVUJOTJEFSUSBEJOHBSPVOECBOLFST and you’ll certainly be warned that it’s not to be taken lightly. As an investment banker, one is privy to a WETFEET INSI DER G UIDE
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FOR YOUR REFERENCE
Due diligence
GETTING HIRED
Don’t take the name literally. Hedge fund is the term used to describe a private investment partnership. Since they’re private, hedge funds (unlike mutual funds, which are sold to the public) are not regulated by the SEC and cannot advertise. Some consultants TQFDJBMJ[FJOSFWJFXJOHIFEHFGVOETBOEEJTTFNJOBUJOH the information to potential investors. A share of QSPëUTMPTTFTJTBMMPDBUFEUPBMMQBSUOFSTCBTFEPOUIFJS percentage of ownership; the general partner is paid an additional incentive fee.
THE WORKPLACE
The only thing you remember from calculus, a EFSJWBUJWFJTBMTPBëOBODJBMJOTUSVNFOUXJUIOP inherent value other than what it derives from some other underlying asset. For example, one type of derivative is an interest rate cap. Let’s say a company has a floating-rate loan. In order to manage its interest rate risk, the company might purchase a 7 percent interest rate cap from the issuer for $200,000. The issuer of the cap assumes the risk of an increase in interest rates above 7 percent. If rates exceed 7 percent, the issuer pays for the excess cost owed by the company. If rates stay below 7 percent, the issuer pockets the whole HSBOE0UIFSUZQFTPGEFSJWBUJWFTJODMVEFTXBQT SFGFSSJOHUPUIFTXBQQJOHPGWBSJBCMFGPSëYFESBUF cash flows) and reinvestment products.
Dutch auction
ON THE JOB
Deals are deals, but investment bankers ultimately are neither buyer nor seller. For them, a deal is the process and completion of a security issuance or acquisition/ merger of a company. The number of deals completed in a year is one of the most important measures of the success of both the bank and the individual banker.
be sued. See also: CYA.
THE FIRM
CYA
AT A GLANCE
relative to others in the same industry by comparing data such as current stock prices, earnings, and ëOBODJBMSBUJPT"OBOBMZTUDBOFYQFDUUPSVODPNQTGPS KVTUBCPVUFWFSZEFBM
AT A GLANCE THE FIRM ON THE JOB
Deutsche Bank in the U.S. huge amount of information that cannot be acted on. Imagine, for example, that you were part of the team advising IBM in its acquisition of a publicly traded software developer. Knowing that IBM would be offering a 30 to 50 percent premium over the going market price for the company’s stock, you could buy a couple hundred (or thousand) shares of the company and sell them a month later, after the deal goes UISPVHI NBLJOHBUJEZQSPëU6OGPSUVOBUFMZ UIJTJT illegal; if you’re caught, you may be banned from the TFDVSJUJFTJOEVTUSZGPSMJGF ëOFE BOEPSUISPXOJOKBJM (See the movie Wall Street for a Hollywood portrayal of such an event.) See also: Chinese wall.
THE WORKPLACE
LTM
Investment banker
Last 12 months. For example, a senior banker may say to you, “Get me the company’s LTM revenue and FBSOJOHTOVNCFSTw
A term used by outsiders only. If you’re in the business, you’re a banker (as opposed to a commercial banker).
Lucite
Investment grade
GETTING HIRED
to sell the wheels for $10 each, the muffler for $8, the stereo and speakers for $25, the engine for $50, the axle BOEESJWFUSBJOGPS BOEUIFCPEZUPUIFKVOLZBSE for $5. You give your parents back their $90 plus two months’ interest ($1.80), and you still have $53.20 left over, which is a 532 percent return on your initial $10 JOWFTUNFOU"O-#0JTTJHOJëDBOUMZNPSFDPNQMJDBUFE but, in general, a corporation is purchased at a low price, its assets are sold off at a much greater value, and UIFCBOLJODIBSHFNBLFTBIBOETPNFQSPëU
Low-risk bonds, as determined by Standard & Poor’s (AAA to BBB) or Moody’s (AAA to Baa). Both Standard & Poor’s and Moody’s provide independent DSFEJUSBUJOHT SFTFBSDI BOEëOBODJBMJOGPSNBUJPOUP the capital markets. See also: High yield.
Brand name for a durable clear plastic material, as well as versions of tombstones (see: Tombstone) encased in Lucite that are distributed to members of the deal team. Lucites are highly coveted tchotchkes among bankers, BOEEJêFSFOUëSNTDPNQFUFUPTFFXIJDIDBODSFBUF the cleverest designs. You may need to keep your pillTIBQFE KFXFMDVU BOEXPSLJOHTMPUNBDIJOF-VDJUFTBU home to protect them from covetous coworkers.
IPO *OJUJBMQVCMJDPêFSJOH"O*10PDDVSTXIFOBQSJWBUFMZ owned company sells shares of stock to the public for UIFëSTUUJNF BOEUIFTIBSFTBSFUIFOQVCMJDMZUSBEFE through a stock exchange. In 1999 and 2000, being iQSF*10wXBTBCJHHFSESBXUIBOiEFOUBMQMBOwJO the San Jose Mercury News want ads. In 2005, “dental QMBOwJTNPSFUIBOIPMEJOHJUTPXO
Make the quarter When a publicly held company meets or beats an analyst’s quarterly or annual earnings estimates, it’s made the quarter.
M&A Get used to this shorthand, as virtually no insiders CPUIFSTBZJOHiNFSHFSTBOEBDRVJTJUJPOTw
FOR YOUR REFERENCE
LBO Leveraged buyout. This term was more widely used in the ’80s, but the activity is still alive and kicking. An -#0IBQQFOTXIFOBDPNQBOZJTQVSDIBTFEVTJOH very little equity and a lot of debt. Let’s say you buy an ailing automobile for $100, using $10 of your own cash and a $90 loan from your parents. You agree to pay your parents back the full $90, plus 1 percent interest per month until the loan is paid off. You then proceed 60
W E T F E E T I N SID ER GU ID E
Municipal bond Debt issued by local or state government body. Usually the interest is exempt from federal (and sometimes local and state) taxes.
NASD The National Association of Securities Dealers, the QBSFOUDPNQBOZPGUIF/"4%"24UPDL.BSLFU JT
Reconciliation
0WFSUIFDPVOUFSTFDVSJUJFTBSFOUUSBEFEPOBO PSHBOJ[FEFYDIBOHFTVDIBTUIF/FX:PSL4UPDL &YDIBOHF"CSPLFSEFBMFSXJMMiNBLFBNBSLFUwGPS 05$TFDVSJUJFT
ɨFQSPDFTTPGDIFDLJOHPOFëOBODJBMSFDPSEBHBJOTU another to ensure they balance out. For example, reconciling a bank account would involve verifying the money withdrawn from the account matches what was actually spent.
PE multiple Red herring The preliminary prospectus on a deal. Printed along the side of the front cover, in red ink, is a notice indicating that it is preliminary. A road show (see CFMPX TUBSUTPODFBëSNJTDMFBSFECZUIF4&$UP iQSJOUUIFSFETw
Road show Printer "DPNQBOZUIBUQSJOUTëOBODJBMEPDVNFOUTGPSBEFBM Young bankers and lawyers spend a lot of time here before a deal, checking and rechecking the progress of a prospectus or proxy statement.
STP A standard trading timeline allows three days for settlement (T+3 trading), but with straight through processing (STP) that time can be cut down TJHOJëDBOUMZ451BMMPXTUSBEFSTUPFOUFSUSBOTBDUJPO information one time into an electronic form, which WETFEET INSI DER G UIDE
FOR YOUR REFERENCE
Investment bankers spend as much time pitching deals as they do actually working on them. Every time one of the calling officers (the top two or three levels of bankers) goes to a meeting with the management of a potential client, he or she takes along a slide presentation or bound TUBDL iEFDLw PGCVMMFUQPJOUQBHFTBOEDIBSUT XIJDI is called a pitch book. It discusses the client’s industry and why your bank is the best one for the client to use in any deal it contemplates. The upside of putting together a pitch book: It’s one of your initiation rites as an investment banker. Moreover, you’ll learn a lot about a company and an industry, and maybe you’ll even meet someone cute in the copy center (where you’ll spend long,
GETTING HIRED
Pitch book
A sales trip around the country (and sometimes other countries) with the upper management of a company during the month or so before the company’s securities issue. During the road show, the company management, investment bankers, and research analysts on the deal team will visit institutional investors to tell the story behind the company and convince them to buy into the offering. At times, this means breakfast in San Francisco, lunch in L.A., an evening flight to Denver for meetings the next morning (spending the night at a posh hotel), then on to Chicago, and so on. Exhausting, but quite a few good meals and a chance to see some interesting new faces.
THE WORKPLACE
The price-to-earnings multiple is an important ratio on Wall Street. It can tell you if a stock is over- or undervalued relative to its historical performance and SFMBUJWFUPPUIFSëSNT5PDPNQVUFJU EJWJEFUIFNBSLFU price of a share of common stock by the earnings per share of the stock for the preceding 12 months. A forward PE uses estimated earnings in the denominator.
ON THE JOB
OTC
NASDAQ
THE FIRM
ɨF/"4%"24UPDL.BSLFUJTBEFDFOUSBMJ[FEOFUXPSL PGDPNQFUJUJWFNBSLFUNBLFST PSëSNTUIBUTUBOESFBEZ to buy or sell securities at publicly quoted prices.
long hours). The downside? Insiders tell us that putting together pitch books can be pretty dull and repetitive, especially for low-on-the-totem-pole analysts. If you’re an associate, typically you’ll be writing and designing a pitch book, while the analysts put together the charts and graphs, compile the statistics, and make all the edits.
AT A GLANCE
SFTQPOTJCMFGPSPQFSBUJOHBOESFHVMBUJOH/"4%"2 BOEPUIFSPWFSUIFDPVOUFS 05$ TFDVSJUJFTNBSLFUT
61
AT A GLANCE
Deutsche Bank in the U.S. can then be sent to all parties involved. This means less UJNFëMMJOHPVUJOGPSNBUJPOBOETBNFEBZUSBOTBDUJPOT
THE FIRM
Secondary offering "OZPêFSJOHBGUFSBDPNQBOZT*10UIBUJT XIFOB publicly traded company offers additional stock on the market—is a secondary offering. Also known as a iGPMMPXPOw
ON THE JOB
Separation of duties (SOD) 4PNFUJNFTSFGFSSFEUPBTiTFHSFHBUJPOPGEVUJFT wUIJT is a policy implemented to prevent fraud by ensuring that sensitive processes go through several people. For JOTUBODF 40%XPVMEQSFWFOUUIFTBNFQFSTPOXIP deposits checks to reconcile bank statements.
Settlement
THE WORKPLACE
The completion of a trade—as in the buyer paying for the security and the seller delivering the security.
GETTING HIRED
Trade capture Gathering details of a trade once the trade is DPNQMFUFEɨ JTiDBQUVSFwPGJOGPSNBUJPOJT JODSFBTJOHMZCFJOHEPOFXJUITQFDJBMJ[FEDPNQVUFS programs, which reduce human error, make the process more efficient, and keep the bank’s position up-to-date in real time.
Wallpaper Share of voice A securities analyst’s level of credibility with respect to a particular stock is referred to as share of voice. It’s usually earned by making accurate calls on the stock’s price movement. The analyst with the most share of WPJDFNBZCFDBMMFEUIFiBYwPOBTUPDL
Synergy
FOR YOUR REFERENCE
advertisements in Section C declaring, “Company X completed the issuance of X hundreds of millions PGTIBSFT
wBOEMJTUJOHBMMUIF JOWFTUNFOUCBOLTJOWPMWFEJOUIFEFBMɨ FTJ[FTBOE grouping of the bank names show each one’s level of involvement on a particular deal. The largest name on the left side of the tombstone is the one to pay attention to, as it is the lead manager—the bank that did most of the work and received the lion’s share of fees. See also: Lucite.
ɨ JTUFSNJTPGUFOBOBUUFNQUUPFYQMBJO$&0IVCSJT In doing an analysis of one company acquiring another, a banker may say that a company makes $50 million per year, and that a company it hopes to acquire makes $20 million per year, but together they’ll make $100 million. Nobody taught you this in college math, did they? The basic idea is that neither company can reach its full potential on its own, but by each linking with a well-positioned strategic partner, both parties achieve the stuff that dreams are made of.
Tombstone If you read The Wall Street Journal (which you should be doing regularly if you’re interested in investment banking), keep an eye out for the big box 62
W E T F E E T I N S ID ER GU ID E
Worthless securities. The issuing company has gone bankrupt or defaulted.
White-shoe Anachronistic (but still commonly used) DIBSBDUFSJ[BUJPOPGëSNTUIBUTFFUIFNTFMWFTPS would like others to see them—as upper-crust and above activities as distasteful as hostile takeovers. The term comes from an old Ivy League tradition of wearing white buck shoes in elite fraternities and clubs.
AT A GLANCE
RECOMMENDED FOR FURTHER READING STUDY The head of Global Markets credits simple products— foreign exchange, money markets, and rates—for %FVUTDIF#BOLTSFUVSOUPQSPëUBCJMJUZ#VUIFIBTOUHJWFO VQPOUIFDPNQMFY iOPOWBOJMMBwFOEPGUIFCVTJOFTT Clive Horwood, Euromoney, May 6, 2009
After a rough 2008, Deutsche Bank’s trading revenue SFDPWFSFEUPSFUVSOJUUPQSPëUBCJMJUZJOUIFëSTURVBSUFS of 2009. But that sunny news was clouded by the ëSNTSPDLZTIBSFQSJDF David Jolly, The New York Times, April 29, 2009
$&0+PTFG"DLFSNBOOJTDPOTFSWBUJWFBOEUSBEJUJPOBM That’s part of the reason Deutsche Bank has been able to survive the subprime mortgage crisis. In an JOUFSWJFXGSPNUIFEFQUITPGUIFëOBODJBMDSJTJT Ackermann lays out his plan for using the bank’s simplicity as a model for future strategy.
This comprehensive WetFeet Insider Guide will help you land an interview in investment banking. We’ll teach you everything you need to know about how to write your resume and cover letter. In this book, we examine real resumes from real people to show you how cover letters and resumes are used in the I-banking recruiting process, pass on industry insiders’ best tips for resume formatting and content, let you in on what recruiters are looking for, and help you keep ZPVSSFTVNFPVUPGUIFDJSDVMBSëMF
Beat the Street: Investment Banking Interviews and Beat the Street II: I-Banking Interview Practice Guide
WETFEET INSI DER G UIDE
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FOR YOUR REFERENCE
Turn to these WetFeet Insider Guides for an in-depth description of the I-banking interview process, including tips for acing interviews in corporate ëOBODF SFTFBSDI TBMFT BOEUSBEJOHɨ FDBSFFSFYQFSUT at WetFeet talked to recruiters, new hires, and senior CBOLFSTBUUIFMFBEJOHJOWFTUNFOUCBOLJOHëSNTUP answer all your questions about interviews—from JOGPSNBUJPOTFTTJPOTUPUIFëOBMJOUFSWJFXUPUIFPêFS You’ll get the skinny on how to prepare (our three R’s: research, rehearse, review) as well as a variety PG2"XPSLTIFFUT EFUBJMFEBEWJDFGPSJNQSFTTJOH your interviewer, and a ton of useful—and often surprising—tips from Wall Street insiders.
GETTING HIRED
Mark Landler, The New York Times, August 1, 2008
Killer Investment Banking Resumes!
THE WORKPLACE
“Deutsche Bank’s Chief Proves Right for Times”
(www.db.com/careers) Deutsche Bank has a comprehensive website, which you should research before interviewing. The Global Graduate Careers section provides details about the divisions that recruit and their global entry-level programs, training opportunities for MBAs and undergraduates, internship programs, necessary RVBMJëDBUJPOT HFPHSBQIJDMPDBUJPOT BOEHFOFSBMUJQT POMBOEJOHBKPCBU%FVUTDIF#BOL
ON THE JOB
“Deutsche Bank Returns to Profit”
Deutsche Bank Online
THE FIRM
“Anshu Jain cranks up the flow at Deutsche Bank”
AT A GLANCE THE FIRM ON THE JOB THE WORKPLACE
Deutsche Bank in the U.S.
KEY NUMBERS AND PEOPLE 2008
2007
Share price at year end (¤)
27.83
89.40
Share price high (¤)
89.80
118.51
Share price low (¤)
18.59
81.33
Return on average shareholder’s equity (post tax)
(11.1) %
17.9%
Basic earnings per share (¤)
(7.61)
13.65
Diluted earnings per share (¤)
(7.61)
13.05
Total net revenues (millions of ¤)
13,490
30,745
Net income (millions of ¤)
(3,896)
6,510
Total assets (millions of ¤)
2,202
1,925
Shareholder equity (millions of ¤)
30.7
37.9
Source: Deutsche Bank 2008 annual report
MANAGEMENT TEAM
Group Executive Committee The Group Executive Committee (GEC) is made up of the members of the management board, the heads of the core businesses (some of whom are also members of the management board) as well as the heads of regional management. At regular meetings, UIF(&$BOBMZ[FTUIFEFWFMPQNFOUPGUIFCVTJOFTT divisions, discusses matters of group strategy and develops recommendations that are presented to the management board for decisions. Josef Ackermann, chairman of the management board and the group executive committee )VHP#ÊO[JHFS DIJFGSJTLPïDFS Michael Cohrs, head of Global Banking Jürgen Fitschen, head of regional management worldwide Anshu Jain, head of Global Markets 4UFGBO,SBVTF DIJFGëOBODJBMPïDFS Hermann-Josef Lamberti, chief operating officer Rainer Neske, head of Private & Business Clients Kevin Parker, head of Asset Management Werner Steinmüller, head of Global Transaction Banking Seth Waugh, chief executive officer Deutsche Bank Americas Pierre de Weck, head of Private Wealth Management
FOR YOUR REFERENCE
GETTING HIRED
Management Board The Management Board is responsible for managing UIFDPNQBOZ*UTNFNCFSTBSFKPJOUMZBDDPVOUBCMFGPS the management of the company. Dr. Josef Ackermann, chairman of the management board and the group executive committee %S)VHP#ÊO[JHFS DIJFGSJTLPïDFS Michael Cohrs, head of Global Banking Jürgen Fitschen, head of regional management worldwide Anshu Jain, head of Global Markets 4UFGBO,SBVTF DIJFGëOBODJBMPïDFS Hermann-Josef Lamberti, chief operating officer Rainer Neske, head of Private & Business Clients
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MAJOR OFFICES "EJSFDUPSZPGUIFëSNTHMPCBMPïDFTDBOCFGPVOEBU IUUQUPPMTEFVUTDIFCBOLEFDDMPDBUJPOTëOEFSFO welcome2.do
AT A GLANCE
THE FIRM
ON THE JOB
THE WORKPLACE
GETTING HIRED
FOR YOUR REFERENCE
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