Top CEO Admits To 'Tremendous Mistakes'

'Tremendous mistakes have been made. We can see times have changed and we need to change and change rapidly'.

So said Deutsche Bank co-CEO Anshu Jain at a news conference Tuesday, as the bank set out its plans for cultural change, improving its reputation, reducing headcount and paring back compensation.

Commenting on job losses, Jain said: 'We are still dimensioning all of that. (However) we expect it (the final job loss number) to be above the target of 1,900 (announced in July)'.

Reuters also reports that Jain talked about the bank's need for cultural change. 'The burden of cultural change will fall disproportionately in the investment bank', he said, as the unit had been responsible for the 'most asymmetric' division of revenue between bankers and shareholders in previous years.

'The payout ratio, it's got to go down. Employees must make their contribution', he said.

'Compensation practices are one important way to achieve behavioral change and align incentives to longer-term sustainable performance on behalf of all stakeholders', Jain added.

Bloomberg reports, however, that Deutsche will not impose an absolute cap on pay. Jain also said: 'We are part of a competitive environment. One size fits all doesn’t make sense'.

And on the job loss front, Bloomberg reports that three Deutsche Bank credit traders including Brad Visokey and a debt salesman left the firm this week.

Visokey, who traded credit-default swaps tied to lenders and automakers, and Robert Lam, who handled swaps on insurance companies, left the bank’s New York office Monday, said two people familiar with the matter who asked not to identified because they haven’t been announced. Christopher Park, a vice president in credit trading, and James Bertoni, an associate salesman, also left, people familiar with those moves said.

Finally, Bloomberg reports that Deutsche’s overhaul looks set to leave Europe’s largest bank with thinner capital buffers than peers.

Deutsche Bank plans to boost core tier 1 capital to at least 8% of assets weighted by risk under Basel III rules by the end of March 2013, and to more than 10% two years later, co-CEOs Anshu Jain and Juergen Fitschen confirmed in Frankfurt Tuesday. Its biggest competitors will reach similar levels months or years sooner, based on forecasts from the banks.

Hit the link below to access the complete Bloomberg article:

Deutsche Bank Revamp Leaves Firm Behind Peers on Capital

Deutsche Bank Chiefs Outline Overhaul Plan

Pain prescribed as Deutsche duo slice bonuses, jobs

Deutsche Bank to Increase Job Cuts, Lower Pay to Reach Goals

Deutsche Bank Credit Traders Said to Leave on Cost Cuts