Deutsche Bank's finance chief told staff representatives last month that job cuts at the bank could be double that planned, a step that could remove 10,000 further employees, a person with direct knowledge of the matter has told Reuters. David Pollard reports.
Deutsche - Germany's biggest bank - and with problems to match. A new report saying it COULD be thinking about another swathe of jobs cuts. 10,000 possibly under consideration, according to a source speaking to Reuters. 9,000 already announced a year ago. It has so far declined to comment. SOUNDBITE (English) DOMINIC ELLIOTT, REUTERS BREAKINGVIEWS, SAYING: "Banks everywhere are failing to earn a return on equity above their cost of equity, which means they are actually destroying shareholder value. Deutsche Bank is no different - in fact, it's one of the worst performers on that front. This is the problem that Deutsche Bank has. You know, like other banks, it has to cut costs. So it is plausible." Commerzbank recently announced 10,000 redundancies as others in the sector also look to slim down. ING confirmed 7,000 jobs would be shed. Deutsche itself seeing its stock price tumble - since news last month of a possible fourteen billion dollar US fine for selling toxic mortgage bonds. SOUNDBITE (English) DOMINIC ELLIOTT, REUTERS BREAKINGVIEWS, SAYING: "There's quite a lot of uncertainty there. There are a couple of other fines in the offing, and if you're an investor, how do you get comfortable with that uncertainty to be ready to commit more capital or even to stay as a shareholder. It's a difficult ask." It's thought high severance costs - especially in Germany - could put Deutsche off more redundancies. But Germany's political leaders will be watching. Elections next year making this a bad time for any decision on whether its biggest lender might need a bailout. Or to see record high employment figures dented by high-profile staff cuts.