Axe To Fall At Deutsche

A fresh round of cost-cutting is likely to be launched by Deutsche, Germany's biggest bank. New Chief Executive Josef Ackermann has now confirmed that he could not rule out further jobs cuts in addition to the 9,200 positions already earmarked to go. Further cuts are likely as there is no sign of a market pick-up in the offing.

Although the world's stock markets continue to be depressed, Deutsche will press ahead with plans to sell its huge shareholdings in Germany's corporate giants, including DaimlerChrysler and Axel Springer. Recent changes in Germany's tax laws has now made the disposal of these assets much easier. Deutsche has confirmed that it will use part of the proceeds to buy back up to 10% of its stock in an effort to drive up its share price and make it more difficult for the bank to fall prey to a hostile takeover.