German newspaper Handelsblatt reported on Thursday that Deutsche Bank is planning to cut 1,000 investment banking jobs in response to tough market conditions.
Co-CEO Anshu Jain warned last month that: 'We need to once again speak about growth, but also about measures to raise efficiency, after all we have been tasked by the supervisory board with raising the value of our bank in the long run'.
Although Jain would not be drawn about possible job cuts at that time, there has been speculation for several weeks that Deutsche is planning to wield the job axe.
In the meantime, Bloomberg reports that Deutsche may have to bolster capital after Credit Suisse bowed to pressure from regulators and announced plans to raise $15.6bn.
Credit Suisse’s move leaves Deutsche Bank and France’s Credit Agricole SA as the two European banks with the weakest capital position, said Christopher Wheeler, an analyst at Mediobanca SpA with an underperform rating on the German lender. Deutsche Bank may use a September strategy day to update investors on its capital plans, he said.
'After the capital measures by Credit Suisse, Deutsche Bank is among the two weakest banks in Europe', Wheeler said by telephone from London. 'The pressure is on Deutsche Bank now'.
Hit the link below to access the complete Bloomberg article:
Deutsche Bank Pressured to Bolster Capital After Credit Suisse
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