Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

Deutsche Bank to cut bonuses

Tuesday, September 11, 2012 - 01:58

Sept. 11 - In a plan to make 3 billion euros of savings by early next year, Deutsche Bank is reducing bankers' bonuses and cutting jobs. Joanne Nicholson reports

▲ Hide Transcript

View Transcript

One of the world's biggest investment banks has made one almighty statement. In its plan to save money, Deutsche Bank is going to cut bankers' bonuses. Europe's largest bank, in assets, is trying to tackle a downturn in finance. It wants to save 3 billion euros, and sell off 45 billion euros worth of assets by March. Banking analyst, Ralph Silva says the cutbacks aren't just because of the economy. (SOUNDBITE) (English) RALPH SILVA, SILVA RESEARCH NETWORK, SAYING: "They have made massive investments in new technology and as a result they don't need as many people so they can in fact do a per transaction business that is far lower than it was in the past. These are realistic targets and I think they can achieve them even if the economy doens't recover to the extent that many believe it will." Deutsche Bank's new technology is replacing jobs and more are likely to go, beyond the total of 1,900 positions already earmarked. Its new joint chief executives have pledged to end a risk culture driven by short-term gain. And analysts say making a stand on pay has been made easier by the fact that disgruntled traders now have fewer places to go. Bonuses will be cut in relation to business performance and senior managers will have to wait five years to receive bonus share awards, rather than have them staggered over three years. There will be some relief for investors too. Deutsche has committed to a 10 percent ratio of capital to assets by 2015 - under rules set out by the global regulatory standard, Basel III. Deutsche's big announcements come on the eve of another. Europe's banking union plan is due on Wednesday. The proposal is expected to include a shift from supervision of institutions like Deutsche Bank from German regulators to the European Central Bank. Joanne Nicholson, Reuters

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Deutsche Bank to cut bonuses

Tuesday, September 11, 2012 - 01:58