German bank becomes latest global lender to target staff in post-pandemic cost reductions
Deutsche Bank is to cut 3,500 jobs, making it the latest global lender to target employees as part of post-pandemic cost reductions, amid a drop in profits.
The German bank said that while it had made progress on a €2.5bn (£2.1bn) cost-cutting programme that it first announced in 2022, it still needed to save €1.6bn of that total, meaning thousands of staff had to go.
Continue reading...District judge Jed Rakoff approved the ‘very large’ amount in addition to a $75m payout agreement with Deutsche Bank
A US judge on Monday granted preliminary approval to JPMorgan Chase’s $290m settlement with women who said Jeffrey Epstein abused them and that the largest US bank ignored the late financier’s sex trafficking.
The approval was issued by US district judge Jed Rakoff at a hearing in Manhattan federal court.
Continue reading...Manhattan judge allows central accusations that banks benefitted from ties to sex trafficker to proceed
A US judge has ruled that a pair of lawsuits accusing two major banks of knowingly benefitting from ties to sex trafficker Jeffrey Epstein can proceed, though in a narrower form than had been initially filed.
The four-page ruling by Manhattan district judge Jed Rakoff granted motions by JPMorgan and Deutsche Bank to dismiss some counts against them, but permitted the central claims brought by Epstein accusers and the US Virgin Islands to proceed.
Continue reading...Regulator had said it corruptly hired unqualified relatives of foreign officials to win business
Deutsche Bank has agreed to pay a $16m (£13m) fine to US authorities overallegations that it hired unqualified relatives of powerful Russian and Chinese government officials to win business.
The Securities and Exchange Commission (SEC) alleged that Germany’s largest lender had used false books to record the hirings, which meant the relatives – known in China as “princelings” – did not have to go through rigorous interview processes.
Continue reading...Some staff in London reported to be in tears after hearing their jobs have gone
Deutsche Bank started slashing thousands of jobs in the City of London and in New York only hours after announcing a drastic plan to reduce its global workforce by 18,000.
Germany’s biggest lender employs almost 8,000 people in the UK, with 7,000 in London, which is one of the main hubs for its global investment bank, where the bulk of the job losses will be focused. The jobs being cut make up about a fifth of Deutsche’s global workforce of 91,500.
Continue reading...Donald Trump sought on Monday to discredit a New York Times report that Deutsche Bank employees flagged concerns over transactions involving legal entities controlled by the president and his son-in-law, Jared Kushner.
Related: Deutsche Bank staff saw suspicious Trump and Kushner activity – report
Continue reading...A wiser board might have stopped Chris Mawe’s £400,000 share sale the morning before auditor quit
It is a rare for an auditor to quit the role at a London-listed FTSE 250 firm. So one might conclude it was merely unfortunate that Chris Mawe, the finance director at Ferrexpo, chose last Thursday morning to sell £400,000-worth of shares, just before events moved rapidly at the Swiss-based miner of iron ore in Ukraine. In the evening of the same day, Deloitte quit. On Friday morning, when the firm’s resignation was made public, Ferrexpo’s share price plunged by 28%.
The company had not received Deloitte’s letter of resignation at the time of the share sale, so there is – to be clear – no suggestion rules were broken. Even so, one has to ask if it was sensible for Mawe to sell last Thursday when so many unanswered questions hung in the air.
Continue reading...Exclusive: in confidential internal report seen by the Guardian, bank says scandal has hurt global brand
Germany’s troubled Deutsche Bank faces fines, legal action and the possible prosecution of “senior management” because of its role in a $20bn Russian money-laundering scheme, a confidential internal report seen by the Guardian says.
The bank admits there is a high risk that regulators in the US and UK will take “significant disciplinary action” against it. Deutsche concedes that the scandal has hurt its “global brand” – and is likely to cause “client attrition”, loss of investor confidence and a decline in its market value.
Continue reading...Central banks in spotlight amid Brexit uncertainty and growth concerns
The Bank’s reticence to raise rates has been hinted at by Gertjan Vlieghe and Silvana Tenreyro, two of the nine-member monetary policy committee.
Weaker growth prospects have come on top of concerns about Brexit, according to Martin Beck, lead UK economist at Oxford Economics, a consultancy. He expects a 9-0 vote to keep policy unchanged, saying:
The economy’s recent performance has been broadly in line with the MPC’s expectations. But public pronouncements by some committee members on downside risks have indicated a dovish shift around the pace of future rate hikes.
In light of the continued failure to get a Brexit deal through Parliament, Brexit uncertainty remains a key block on action by the MPC.
The Bank of England will also be in action later this week, with a monetary policy announcement on Thursday at midday.
Anything other than a unanimous vote to keep interest rates on hold would be a shock, for fairly obvious reasons.
Continue reading...Unions warn merger of two German lenders could put up to 30,000 jobs at risk
Deutsche Bank has confirmed it is in merger talks with rival Commerzbank, putting an end to months of speculation over a potential tie-up that stands to unsettle the German banking landscape.
While the move has been touted as a route to greater profitability for the troubled lenders, unions have warned that the merger could put up to 30,000 jobs at risk.
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