Deutsche Bank is reportedly developing emergency plans for what to do if the economy worsens - including saving up to €2 billion by cutting jobs in investment banking, according to TheLocal. Although investment banking brings in a healthy chunk of the bank’s income, the sector is also increasingly volatile. It has for months been suffering from the consequences of financial crises in Europe and the US, which have made investors extremely risk averse.
According to a report in the Financial Times Deutschland (FTD), no plans have been finalized, but bank managers are increasingly concerned over the fragile state of markets. They worry that August's economic gloom could extend far into the future and are considering cost cuts of between €1 and €2 billion, the newspaper reported.
“If revenue from securities and foreign exchange trading decline, there are hardly any IPOs in the pipeline and the economy wobbles, the situation is different,” an unnamed source said.
Deutsche Bank quickly denied the report. Two unidentified people cited by Bloomberg News as “insiders” said that no new cost-cutting programmes are being discussed. A spokesman added that there were already savings plans in place….
Read more at http://www.thelocal.de/money/20110902-37351.html
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