Kevin Parker, the new head of Deutsche Asset Management, is writing to his institutional clients this week telling them how he will restructure the troubled group.

The letter is likely to come directly from Parker, going over the heads of the divisional leaders. It will probably herald the dismemberment of the executive committee which reported to Parker's predecessor Tom Hughes, and cuts in Deutsche's London operation. Paul Manduca, the European chief executive, has initiated discussions on his future with senior management after reading German press reports speculating on his departure.