Dresdner Cuts Heads

Dresdner, now owned by insurance giant Allianz, saw profits fall 89 per cent in 2001 to $161m.

It is thought that the current cuts at the investment bank will not be limited to any specific region, but will instead strip out costs in certain lines of business. The investment bank as a whole is believed to have reduced headcount by around 1,500 in the last 18 months.

Dresdner's corporate and investment banking arm lost £310m last year, predominantly due to bad loans in the US and the high costs of guaranteed bonuses.

The entire bank, which includes a large German retail branch network, is shedding around 7,800 jobs.