Deutsche Bank chiefs are reported to be holding a special weekend gathering on how to speed up cuts at Germany's biggest lender as it grapples with low rates and lower revenues. Axel Threlfall reports.
Deutsche Bank's top brass hold a get-together this weekend, but it may not be the most festive occasion. Sources telling Reuters that the giant lender is thinking about making deeper, faster cuts. Deutsche slipping down rankings of the continent's top banks. SOUNDBITE (English) IG SENIOR ANALYST, CHRIS BEAUCHAMP, SAYING: "Activity has not picked up as well as it should have done. They're still faced with large overhangs in their derivatives positions. It's still a major issue for Germany's most important bank that they haven't reformed in the same way that US banks have. Global ambitions are much diminished. It finds itself saddled with the legacy of those ambitions and really despite its best efforts to turn itself around, there's still a lot more work to be done." Deutsche also dogged by legal battles in the US, including one over mortgage misselling. Last year it set out plans to cut 15 thousand jobs. The bank will also shed units employing another 20 thousand people. Now Reuters sources say more asset sales could be planned: SOUNDBITE (English) REUTERS CORRESPONDENT, ARNO SCHUETZE, SAYING: "Deutsche Bank has said in the past that it wants to divest Postbank, it's big retail arm, although we don't really expect that to happen before 2018 now. There's a couple of other things that they're looking at. There's Abbey Life, the UK insurer, there's always talk about them divesting the asset management unit. but we don't really expect any decision on this in the short term." In August Deutsche briefly held tie-up talks with rival Commerzbank. That idea bemused some analysts, who say regulators want banks to shrink. Deutsche IS already moving in that direction. But with assets of some 1.8 trillion euros, there could be a long way to go.